Wells Fargo detailed plans Thursday to donate $400 million in processing fees it earned from the Paycheck Protection Program to an initiative it says will help small businesses recover from the impacts of COVID-19.
In April, NPR reported that banks took in over $10 billion in fees from the federal government for handling the Paycheck Protection Program, which is administered by the Small Business Administration and designed to provide relief for small businesses.
The bank announced its recovery effort, the “Open for Business” fund, in a news release Thursday morning.
The fund will work with nonprofits that provide capital, technical support and programs for resiliency, for example by helping a business pivot its supply chain, said Jenny Flores, head of Small Business Growth Philanthropy for the bank.
The first round of funding will give $28 million to community lenders known as Community Development Financial Institutions that help Black-owned small businesses,