Wells Fargo Says Fed Cap Is Limiting Small-Business Relief
- Bank says it’s constrained in using strong capital, liquidity
- It will focus on nonprofits, clients with fewer than 50 staff
This article is for subscribers only.
Wells Fargo & Co. said it can’t fully meet demand from small businesses rushing to participate in a U.S. relief program because of constraints imposed by the Federal Reserve on the bank’s growth.
The company has capacity to lend $10 billion to small-business clients under the $349 billion U.S. program, but customers already have expressed more interest than that, Wells Fargo said in a statement late Sunday. The firm will therefore focus on helping nonprofits and businesses with fewer than 50 employees.