Wells Fargo Shares Economic Impact from Open for Business Fund
More than 336,000 small businesses benefited, enabling more than 461,000 jobs in local communities across the
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Julius "Eddie" Lofton, owner of JC Lofton Tailors in
“We took the gross processing fees the government paid us for administering the Paycheck Protection Program in 2020 and committed all of it to a roughly
“At the time, we were stressed about keeping the lights on and retaining employees who are like family to me,” said Julius “Eddie” Lofton of JC Lofton Tailors in
Reaching small business owners who often struggle to access capital and expertise was a priority for the program in order to preserve livelihoods and jobs. The newest data reported by Open for
Strengthening the small business ecosystem
Community organizations say the lessons learned from the Open for
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Understand the value of flexible capital for nonprofits and CDFIs. By design,
Wells Fargo grants were given as flexible capital so that Community Development Financial Institutions (CDFIs) and nonprofits were empowered to be responsive to the unique needs of their communities. This strategy enabled nonprofits to secure new staff and acquire new technology to streamline, customize, and decrease the cost of their lending and technical assistance. Increased efficiency positioned organizations to serve more small business owners, deepening community impact. - Listen to the demand for personalized technical expertise. The program provided more than 1.1 million hours of technical assistance to small businesses with more than 50% provided in a one-to-one format so small business owners could receive tailored expertise for their businesses. More importantly, the delivery of culturally relevant in-language expertise enabled organizations to increase small business owner engagement and expand reach.
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Expand innovations to meet the changing capital needs of small business owners. Grant funding allowed organizations to pilot new products and expand their credit box, enabling them to serve more individuals outside of the financial mainstream. Grantees report providing more than
$1.4 billion in equity grants, low-cost loan products, loan deferrals, modifications, and forgiveness which provided a lifeline to businesses. - Close the small business digital divide. As the economy has become increasingly digital, there is a critical need for small businesses to build their technology skills and confidence so they can access available capital resources and acquire new customers. Online training and support services proved to be effective in helping entrepreneurs save time and money and in learning how to pivot to online customer service models.
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Leverage grant capital to strengthen nonprofit balance sheets. Grantees report leveraging their Open for
Business Fund grants to secure additional private and public sector dollars in support of their capital deployment and technical assistance programs, resulting in a 7:1 leverage ofWells Fargo funding.
“The
Shifting focus to asset ownership and future growth
The final phase of the Open for
“The Open for
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