Small businesses in America experienced unprecedented disruption from the COVID-19 pandemic, which threatened both livelihoods and survival. In response, Wells Fargo created the Open for Business Fund, a $420 million initiative that promoted small business resiliency and recovery.
The Open for Business Fund: A Lifeline for Small Businesses
In July 2020, Wells Fargo committed approximately $400 million in PPP gross processing fees into the Open for Business Fund.
The Open for Business Fund was designed to provide small businesses, with a focus on minority-owned and underserved businesses, both technical assistance and long-term resiliency programs, as well as funding.
Chief Aims
- Access to Capital – Partnering with Community Development Financial Institutions (CDFIs) and local nonprofits to supply small business owners with affordable loans and grants.
- Technical Support – Providing resources and technical expertise to help businesses adapt to new market conditions, including digital transformation consulting and financial management.
- Long-Term Resiliency – Supporting initiatives that promote sustainable business practices and local economic growth.
Impact and Influence
As of July 2024, the Open for Business Fund has made a remarkable difference:
- Small Businesses Supported: More than 336,000 small businesses have received support.
- Job Retention: Over 461,000 jobs have been created or retained, stimulating local economies nationwide.
- Diverse Recipients:
- 79% of supported businesses are minority-owned.
- 53% are women-owned.
- 72% are located in low-to-moderate income areas.
Case Study: JC Lofton Tailors Company
One notable example is JC Lofton Tailors, a family-owned business in Washington, D.C., established in the 1930s. Facing financial hardships during the pandemic, owner Julius "Eddie" Lofton received a $10,000 grant through the Open for Business Fund. This support enabled him to sustain operations and preserve his family's legacy.
Collaborative Work with Community Organizations
The success of the Open for Business Fund is largely attributed to collaborations with over 200 nonprofits and CDFIs. These partnerships were essential in extending support to small businesses in various communities:
- Local Initiatives Support Corporation (LISC):
- Provided minority-owned businesses with grants and low-interest loans.
- Offering technical assistance and access to capital.
- Pacific Coast Regional Small Business Development Corp.:
- Received $2.1 million to establish the People of Color Business Elevation Fund.
- Offers low-rate microloans up to $50,000 for eligible small businesses in Southern California.
- Community Reinvestment Fund, USA:
- Teamed up with Wells Fargo to launch the Small Business Resource Navigator.
- Connects small business owners to available capital resources and technical assistance.
See What Other Businesses Wells Fargo Helps
The Open for Business Fund by the Wells Fargo Foundation represents a strong corporate response to an economic crisis, delivering vital relief to small businesses affected by the COVID-19 pandemic.
Through its partnership-driven approach and commitment to local investment, this initiative has not only helped businesses survive but also laid the foundation for a more inclusive and resilient economy.
For additional information on the Open for Business Fund and its ongoing impact, visit Wells Fargo Stories.
