Supporting Small Businesses During the Holidays

Small businesses are the backbone of the U.S. economy, and many have experienced significant challenges from the COVID-19 pandemic this year. Some have had to close their doors temporarily or permanently, and those who remain open are grappling with complying with new and evolving health and safety regulations, finding alternate ways to meet their customers’ needs, and retaining their employees.

“Small businesses need our support more than ever, and we’ve been inspired by the determination, resilience, and creativity so many have shown throughout 2020,” said Jenny Flores, head of small business growth philanthropy for Wells Fargo. “That’s why we’re encouraging everyone to shop local this holiday season — whether that’s making room in the menu for takeout from a neighborhood restaurant, purchasing a gift card for future use, or supporting a favorite neighborhood shop online.”

To further shine a spotlight on small businesses that need sustained support from their communities, we asked small business owners Wells Fargo has worked with this year to reflect on the season and year — and share their thoughts around community, gratitude, and perseverance.

A commitment to help

In addition, this holiday season, $50 million from the Wells Fargo Open for Business Fund will be deployed to nonprofit Community Development Financial Institutions across 32 states to help the small businesses they serve. The Open for Business Fund was created to reinvest about $400 million in gross processing fees the bank would have received from the federal government for lending through the Paycheck Protection Program — a government stimulus program providing small businesses with short-term cash flow assistance — to further help entrepreneurs recover and rebuild.

Wells Fargo funded loans under the Paycheck Protection Program for approximately 194,000 small business customers, totaling $10.5 billion. The company rolled all gross processing fees it would have received from these loans and created the Open for Business Fund, which supports nonprofit Community Development Financial Institutions that provide needed capital, technical support, and long-term resiliency programs for small businesses. Additional awards will continue to be announced through 2021.