Small Business Finance News

Wells Fargo Is First To Lend $1 Billion To SMBs

Written by Jenna Weiner
Published: 9/8/2011

Wells Fargo is the first lender in 2011 to distribute $1 billion to small and medium-sized businesses for growth and development.

Through the Small Business Administration's loan program to help boost lending to small businesses, Wells Fargo recently announced it is the first lender to distribute $1 billion in SBA loans in 2011.

Wells Fargo Lends One Billion Dollars

David Rader, head of Wells Fargo SBA lending division, said the SBA loans are vital for helping businesses achieve financial success, retaining employees and adding jobs to help the economy.

"Our loans are being put to use by about 2,600 business owners across the country to manage and grow their businesses; and we continue to look for more SBA lending opportunities," Rader said.

The SBA 7(a) loans are available to small businesses that have an average revenue of less than $20 million and fewer than 500 employees. Anthony Cremers, owner of Craft Pattern and Mold and recipient of an SBA loan from Wells Fargo, said the loan enabled the company to buy a new production building, add employees and continue to grow steadily despite the United States' current economic uncertainty.

While the SBA loans are a helpful boost in capital for many SMBs, it is important that business owners first know their total cost of expenses before seeking a loan from the bank. A recent survey from Concur found that 20 percent of small and medium-sized business owners do not know how much money they pay out in expenses monthly, 40 percent admit only their accountant knows the business' monthly expenses and 32 percent have only a rough idea of the amount they are paying back to employees.

Vice President at Concur, Isabel Montesdeoca, said small businesses should keep expenses transparent to create regulations, spot trends in claims and keep taxes in order.

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