Wells Fargo Remains the Nation's #1 Small Business Lender - Extends $13.6 Billion in Loans Under $100,000 to Small Business Owne
December 06 2005 - 8:30AM
PR Newswire (US)
Small Business Owners Access Record Amount Of Capital, According to
Latest Government Data SAN FRANCISCO, Dec. 6 /PRNewswire-FirstCall/
-- Despite rising costs for energy, healthcare and housing, one of
the bright spots for the U.S. economy is the continued growth of
small businesses. They are still driving the U.S. economy forward,
as evidenced by the latest, most comprehensive government data on
small business lending. In 2004, financial institutions lent $93
billion to small business owners nationwide (in loans under
$100,000), showing a healthy demand for capital and a strong sense
of optimism in their future business prospects. (Photo:
http://www.newscom.com/cgi-bin/prnh/20051206/SFTU045 ) With 95
percent of all small businesses generating less than $2 million in
annual revenues, tracking loans under $100,000 is an important
measurement to gauge how financial institutions are meeting the
capital needs of small business owners. For the third year in a
row, Wells Fargo led this category, extending over 540,000 loans
totaling $13.6 billion nationwide -- 15 percent of the industry
total. Wells Fargo was the #1 lender to small businesses in Low and
Moderate Income neighborhoods (loans under $100,000), with over
114,000 loans totaling more than $3 billion dollars (16% of the
industry total), according to the 2004 Community Reinvestment Act
(CRA) data. Additionally, Wells Fargo was also the #1 lender to
businesses with less than $1 million in annual revenue. CRA data
provides the industry's most comprehensive set of small business
lending figures. "As uncertainties continue, small businesses are
clearly anchoring us through economic ups and downs," said Wells
Fargo's president and chief operating officer, John Stumpf. "They
are over 20 million strong, have created 55 million jobs, and
generate 50% of the total U.S. GDP -- roughly $5 trillion. There is
no denying that small business is big business." Small businesses
represent more than 99 percent of all employers, employ half of all
private sector employees, and generate between 60-80 percent of new
jobs annually. And they are still growing. According to the latest
U.S. Census Data (1997 - 2002), small businesses overall grew 10
percent, with the diverse segments growing even faster. African
American-owned businesses grew 45 percent; Latino-owned businesses
grew 31 percent; Asian-owned businesses grew 24 percent; and
women-owned businesses grew 20 percent. "We're closely connected to
the nation's diverse small business community, and as one of the
country's leading financial institutions, we believe it is our
responsibility to continue identifying and addressing the needs of
small business owners nationwide," said Mike James, head of Wells
Fargo's Diversified Products Group, and responsible for the small
business segment. "Wells Fargo's year-over-year lending growth
confirms we are successfully reaching out to our customers. The
road ahead is full of opportunity, and we will help our customers
achieve even greater financial success." Wells Fargo ranked #1 for
loans under $100,000 in 19 states: Alaska, Arizona, California,
Colorado, Idaho, Indiana, Iowa, Minnesota, Montana, Nebraska,
Nevada, New Mexico, North Dakota, Oregon, South Dakota, Texas,
Utah, Washington, and Wyoming. "The success of my business depends
on my ability to provide the best products and services possible to
my customers, and I expect the same kind of service from my
financial services provider," said Laine Caspi, founder and
president of Parents of Invention, based in Southern California. "I
chose Wells Fargo because they provided me with everything --
including important capital -- to build and grow my own business."
About Wells Fargo Wells Fargo & Company is a diversified
financial services company with $453 billion in assets, providing
banking, insurance, investments, mortgage and consumer finance to
more than 23 million customers from more than 6,200 stores and the
internet (wellsfargo.com) across North America and elsewhere
internationally. Wells Fargo Bank, N.A. is the only bank in the
United States to receive the highest possible credit rating, "Aaa,"
from Moody's Investors Service. Providing financial products and
services to more than one million businesses with annual sales up
to $20 million in all 50 states, Puerto Rico and Canada, Wells
Fargo is the #1 lender to small businesses in the United States in
total dollar volume according to the most recent CRA data (2004).
The second largest national SBA lender in dollars, Wells Fargo is
an SBA Preferred Lender in 28 states, and originated 4,165 loans
for $579 million in 2005. Its targeted business services programs
provide outreach and education to women, African American, Latino,
and Asian business owners about financial services. Since 1995,
Wells Fargo has loaned more than $28 billion to women and minority
business owners.
http://www.newscom.com/cgi-bin/prnh/20051206/SFTU045
http://photoarchive.ap.org/ DATASOURCE: Wells Fargo & Company
CONTACT: Matt Hurwitz of Wells Fargo, +1-415-222-1679, or Web site:
http://www.wellsfargo.com/
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