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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