Fed Lifts Cap on Wells Fargo for Small-Business Loans

In response to the Fed's move, Wells Fargo CEO Charlie Scharf said since the start of the Small Business Administration's $349 billion Payroll Protection Program on Friday, the bank "received more than 170,000 indications of interest from our customers, and know there is much more need."

The PPP is part of the $2.2 trillion stimulus package, known as the Coronavirus Aid, Relief and Economic Security (CARES) Act.

"While we are pleased to be able to help more small businesses through the Paycheck Protection Program, we note that the Federal Reserve's action does not — and should not — in any way relieve us of our obligations under the consent order," Scharf explained.

"Today's exemption is solely due to the extraordinary circumstances caused by the pandemic. The cap was meant to sanction Wells Fargo, not its customers when they need as much help as fast as possible due to no fault of their own," said Dennis Kelleher, head of the financial reform advocacy group Better Markets, in a statement.