Wells Fargo donates $400M to help minority-owned businesses amid pandemic

To help small businesses in the midst of the COVID-19 pandemic, Wells Fargo announced Thursday it would be donating the processing fees it receives through the Paycheck Protection Program to nonprofits that support minority-owned businesses.

Wells Fargo announced roughly $400 million will go into the Open for Business Fund.

To start, Wells Fargo plans to grant $28 million from the fund to Community Development Financial Institutions (CDFIs), or nonprofit community lenders, specifically "aimed at empowering Black and African American-owned small businesses."

According to data Wells Fargo collected through a June Gallup/Small Business Index survey, more than half of small business owners said they "expect either stagnant or decreasing revenues in the coming 12 months."

"By donating approximately $400 million in processing fees to assist small businesses in need, Wells Fargo’s Open for Business Fund creates opportunities for near-term access to capital and addresses the road ahead to meaningful economic recovery, especially for Black and African American entrepreneurs and other minority-owned businesses," Wells Fargo CEO Charlie Scharf said in a statement. "Wells Fargo is committed to helping small businesses impacted by COVID-19 stay open and get back to growth."

Through August 7, Wells Fargo is accepting its first round of grant applications from CDFIs.

Nonprofit members can learn more here.