Thinking of applying for the Paycheck Protection Program through Wells Fargo? Think again!
Existing Wells Fargo Business Customers, Contact us to see how you can get your application in!Wells Fargo is bowing out of a new federal program aimed at helping small businesses retain workers and pay bills during the coronavirus pandemic. The bank announced late Sunday that it would no longer accept new loan applications under the government's Paycheck Protection Program, which launched last week as part of Washington's $2.2 trillion economic relief package.
The Paycheck Protection Program offers 1% interest loans to business with fewer than 500 workers. Borrowers who don't lay off workers in the next eight weeks will have their loans forgiven, along with the interest. On Monday morning, the U.S. Small Business Administration said more than 100,000 loans had been approved and funded under the program, for a total value of $30 billion.
Wells also said it planned to lend a maximum of $10 billion through the program and that it has already received more than enough applications to reach that threshold. Any requests for loans submitted after April 5 will not be considered, according to the bank.
Since the program launched on Friday, most U.S. banks are processing loans only for existing clients. Wells Fargo's exit could shut out some of its small business customers that have not yet applied for a loan. That's especially significant because Wells Fargo arranged more small business loans than any other lender in the country last year.
The application process for many small business owners has been wrought with frustrations at every turn: from your business bank not being ready to accept applications quickly enough, to each bank having slightly varying requirements of documents needed to apply, to even some banks accepting a certain number of applicants and then closing if off to new applications (just after two days!!).
We have assisted many of our existing accounting and payroll clients through this process, and can help you or anyone you know with a small to medium sized business!
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