Wells Fargo & Company (NYSE: WFC) announced today that it pledged up to $20 million to support the New York Forward Loan Fund (NYFLF), an economic revitalization program across New York State. Initiated by New York Governor Andrew Cuomo, NYFLF is aimed at helping small businesses, nonprofits, and small landlords as they reopen following the COVID-19 pandemic. The fund purchased its first loans in July after pre-applications opened on May 26. A total of $100 million is expected to be available through NYFLF, which Wells Fargo is supporting along with other financial institutions and partners. Wells Fargo’s commitment to NYFLF is the largest announced to date.
NYFLF emphasizes supporting minority- and women-owned businesses and landlords who own small, multifamily properties in low- and moderate-income communities. The loans are intended to help with upfront costs related to reopening, such as inventory, marketing, or refitting for social distancing. Five Community Development Financial Institutions (CDFIs) are processing applications. NYFLF has funded 19 loans across 11 counties totaling $602,103, according to data through July 20. The average loan amount was $31,690. Seventeen loans were distributed to women- or minority-owned businesses and one loan was distributed to a veteran-owned business. They went to businesses including childcare centers, a bakery, a construction firm, health care services, and an agriculture firm.
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“As the largest provider of affordable housing debt and equity in New York City and New York State, Wells Fargo is pleased to support this important initiative that offers much-needed credit to small businesses, landlords, and nonprofits across the entire state that has been hardest hit by the current environment,” said Alan Wiener, head of Multifamily Capital for Wells Fargo Commercial Real Estate.
“Among those participating in this critical program, we are proud to be the largest lender with a commitment of up to $20 million,” said Vince Toye, head of Community Lending and Investment for Wells Fargo Commercial Real Estate. “Since the beginning of the health crisis, Wells Fargo has provided substantial credit and liquidity to our customers, and support to the communities where we work, to help them weather these uncertain times. NYFLF aligns with our commitment to helping our customers and communities during the pandemic.”
Wells Fargo’s role is limited to funding the program. NYFLF was established with support from Calvert Impact Capital, Local Initiatives Support Corporation (LISC), and Community Reinvestment Fund, USA. More information about NYFLF is available online at www.esd.ny.gov/nyforwardloans. More information about Wells Fargo’s COVID-19 response is available online at www.wellsfargo.com/coronavirus.
Wells Fargo’s support of NYFLF aligns with its efforts to assist customers and communities impacted by COVID-19, including the following initiatives:
- Partnering with Feeding America to provide 50 million meals in response to the growing demand for food.
- Donating all processing fees from the Paycheck Protection Program (PPP) — approximately $400 million — to help small businesses. The Open for Business Fund will engage nonprofits to help small businesses keep their doors open, retain employees, and rebuild, with an emphasis on those hardest hit by the pandemic.
- Helped approximately 179,000 small businesses receive PPP funding, totaling $10.1 billion. More than 84% of the loans went to businesses with fewer than 10 employees, with an average loan size of $56,000.
- Providing funding to more than 1,100 nonprofits to assist with critical housing needs, including helping more than 100,000 renters and homeowners stay in their homes.
- Donating $175 million to support economic recovery for communities and vulnerable populations through the Wells Fargo Foundation.
- Helped more than 2.7 million consumer, small business, and commercial customers by deferring approximately 2.5 million payments, representing more than $5 billion of principal and interest payments, and provided more than 6 million fee waivers exceeding $200 million through June 30.
- Providing more than $17 million in relief to struggling self-employed and small business owners through philanthropic capital provided to nonprofit organizations and CDFIs that serve diverse entrepreneurs, including a $1 million grant to Opportunity Fund to seed a $50 million small business relief fund.
- Offering fee waivers, payment deferrals, and other expanded assistance for checking and savings account, credit card, auto, mortgage, small business, and personal lending customers who contact us in need of assistance.
- Expanding free virtual financial coaching through grants to nonprofits serving diverse communities, people with disabilities, and other vulnerable populations.
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