SAN FRANCISCO – October 23, 2018 – Wells Fargo & Company (NYSE: WFC) today announced that it will commit more than $1.6 billion in lending and philanthropy over five years focused entirely on Washington, D.C.
In an effort to unlock more economic opportunity across the city, Wells Fargo created the Where We Live program, in collaboration with the National Community Reinvestment Coalition (NCRC) and local organizations. The program will triple Wells Fargo’s community giving and concentrate resources on the biggest needs identified by community leaders: affordable housing, small business growth and job skills.
“Communities succeed when we all work together,” said Wells Fargo CEO Tim Sloan. “The Where We Live program is rooted in two things: investments that help people live, work and thrive, and a deep understanding that neighborhoods need long-term partners. It builds on Wells Fargo’s legacy of empowering residents and small businesses in our nation’s capital for the past 100 years, and our desire to create a compelling community investment model in Washington, D.C.”
“This is an important step by Wells Fargo to expand its investment in the District, and to listen and work more closely with community groups,” said John Taylor, President and Founder of NCRC. “Expanding access to mortgage and small business loans is essential to closing the wealth gap. Lenders need to listen and focus on the needs of the communities where they do business. It’s heartening to see Wells Fargo strengthen its commitment to do just that.”
Wells Fargo developed Where We Live to harness the power of its broad lending and community investment capabilities for greater impact, with emphasis in Ward 7 and Ward 8. The company worked with NCRC — an advocacy organization championing fairness in banking, housing and business — as well as local housing, small business and nonprofits leaders to design Where We Live.
In addition, Wells Fargo team members will work alongside community leaders on Where We Live over the five-year project.
Wells Fargo has been in Washington, D.C., since 1914, with its first location on G Street, Northwest. Since then, local investments in the District have included support for education, the arts, and neighborhood revitalization, among other community needs.
Wells Fargo’s new commitment includes:
A five-year, $16 million philanthropic commitment that more than triples Wells Fargo’s local giving, with a specific focus on Ward 7 and Ward 8. This philanthropy includes $4 million for Community Development Financial Institutions to grow the small business community and $6 million for nonprofit housing initiatives like down payment assistance and development of affordable rental properties.
As part of Where We Live, four organizations are among the first to receive funding:
- DC Central Kitchen, $150,000. Wells Fargo will sponsor a class of trainees and support the kitchen’s youth job training center and retail café in Ward 8, where residents can learn job skills and real-life work experience. The project focuses on empowering youth who have become disconnected from work and school to pursue promising hospitality careers.
- SOME (So Others May Eat), $100,000. Homeless families enter this housing program with little income and minimal financial management knowledge. Residents will work with on-site case managers to create plans that outline financial, professional and personal objectives. Goals include increasing savings, reducing debt, securing and maintaining employment or completing job training.
- Washington Area Community Investment Fund, $125,000. This nonprofit community loan fund’s mission is to increase equity and economic opportunity in underserved communities by investing knowledge, social, and financial capital in low- and moderate-income entrepreneurs.
- MANNA, Inc., $125,000. This affordable housing nonprofit helps low- and moderate-income individuals secure high-quality housing. Wells Fargo support includes development funding for MANNA’s Hunter Place project in Southeast Washington and homebuyer counseling.
Loans and equity investments totaling more than $1.5 billion. Wells Fargo is pledging to maintain or grow market leader commitments in home lending, small business lending and community lending and investment over five years. For example, the Parkway Overlook development in Ward 8 is one of the early Where We Live projects to tap $90 million in lending and equity investments from Wells Fargo to convert an abandoned housing complex into 220 affordable rental units.
Wells Fargo philanthropy
Wells Fargo is the No. 2 corporate cash donor in the U.S., according to The Chronicle of Philanthropy. In 2017, the Wells Fargo Foundation donated more than $286.5 million in 2017 to more than 14,500 nonprofits. The company also is on track to increase its philanthropy by 40 percent in 2018, targeting $400 million in donations by the end of the year. Beginning in 2019, Wells Fargo plans to invest 2 percent of its after-tax profits in philanthropy.
Wells Fargo recently was recognized as one of the 100 Best Corporate Citizens by Corporate Responsibility Magazine for its environmental, social and governance performance and disclosure practices. Wells Fargo also was recognized by Fortune magazine as the third Most Generous Fortune 500 Company.
About Wells Fargo
Wells Fargo & Company (NYSE: WFC) is a diversified, community-based financial services company with $1.9 trillion in assets. Wells Fargo’s vision is to satisfy our customers’ financial needs and help them succeed financially. Founded in 1852 and headquartered in San Francisco, Wells Fargo provides banking, investment and mortgage products and services, as well as consumer and commercial finance, through 7,950 locations, 13,000 ATMs, the internet (wellsfargo.com) and mobile banking, and has offices in 37 countries and territories to support customers who conduct business in the global economy. With approximately 262,000 team members, Wells Fargo serves one in three households in the United States. Wells Fargo & Company was ranked No. 26 on Fortune’s 2018 rankings of America’s largest corporations. News, insights and perspectives from Wells Fargo are also available at Wells Fargo Stories.
The National Community Reinvestment Coalition and its 600 grassroots member organizations create opportunities for people to build wealth. NCRC works with community leaders, policymakers and financial institutions to champion fairness in banking, housing and business. Learn more at www.ncrc.org.
Summary of the Community Benefits Plan Between the National Community Reinvestment Coalition and Wells Fargo.
Philanthropy and Support Programs Goal – $16,350,000
The Philanthropy Goal is comprised of two parts: Local Community Development Dollars $5,000,000 – these dollars are specifically focused on community development grants in-line with the focus areas of Where We Live™ including affordable housing, workforce development, small business support and non-profit capacity building. This commitment will more than triple Wells Fargo’s 5 year historical average of $310,260 in community development philanthropy for Washington DC for each of the next 5 years. Other local philanthropic giving for areas outside of the Where We Live™ program, including education, arts and culture, will continue at the current level.
National Program Dollars – $11,350,000 – these dollars are pledged through national programs and budgets focused on affordable housing, small business development and workforce development. Many of these programs have their own launch process and cannot be named in advance, however funds for DC have been confirmed. $4,000,000 CDFIs $6,750,000 Affordable Housing Development & Programs $500,000 Asset Building Grants $100,000 Supplier Diversity Programs These are new dollars in the market, as no Wells Fargo programs specifically earmarked funds for the DC market prior to the Where We Live™ program.
Community Development Lending & Investments
New Market Tax Credits $34,000,000
Wells Fargo is committing $34 million to New Markets Tax Credits in DC in 2018 through 2019. This is double what Wells Fargo was doing previously in DC.
CDFI and Special Programs $16,000,000
Wells Fargo has not funded DC CDFI’s in the past. They are now committing $16 million to patient capital for CDFIs and special programs. Wells Fargo also commits to establishing referral relationships with local CDFIs.
Affordable Housing Lending – $150,000,000
Wells Fargo is committing to maintaining their level of support for affordable housing, and commits to increasing access for bidding opportunities for nonprofit developers. Historical figures for affordable housing lending in DC between 2014 and 2016 are as follows:
Wells Fargo commits to opening an additional LMI branch in DC.
Access to Homeownership
Wells Fargo commits to supporting the following
- Housing counseling, including the establishment of referral relationships with local credit counselors
- Down Payment Programs
Small Business Access
Wells Fargo commits to supporting and enhancing the following: Small Business Credit Coaching – Partnerships with Chambers of Commerce – Supplier Diversity Capacity Building – Supplier Access Awareness