Wells Fargo commissioned Gallup to conduct a national study of small business owners to determine th...

1. Gallup study reveals needs of diverse businesses
Wells Fargo commissioned Gallup to conduct a national study of small business owners to determine
their experiences in the areas of lending and operation.
Based on the findings on Gallup.com, Wells Fargo has presented a four-point plan to address the
needs identified. The Gallup survey included findings of business owners in six segments - African
American, Asian American, Hispanic, LGBT (Lesbian, Gay, Bisexual and Transgender), military
veteran, and women.
"Serving diverse communities has long been a focus area and priority for Wells Fargo, yet we know
there's more work to be done," said Lisa Stevens, head of Small Business for Wells Fargo.
"It starts with gaining a deeper understanding of the experiences of diverse small business owners
working with financial institutions. For this reason, we commissioned the Gallup study, which gave
us new insight into the perceptions and experiences of diverse business owners working with banks,
and how we can improve as a company and as an industry."
The four-point plan includes: an expanded credit coaching program, $75 million in investments and
grants, lending in diverse communities and enhanced Chamber Training Institute for diverse
leaders.
Credit Coaching Program. In the Gallup survey, diverse-owned small businesses were more likely to
report they had been declined for business credit. About one in five African American, Asian and
Hispanic business owners faced a credit decline, compared to 14 percent of general market
respondents.
After being declined, 64 percent African American business owners said they did not apply for credit
again, compared to 47 percent of the general small business population. Also, reporting greater
personal credit challenges were 14 percent African American and 15 percent LGBT, as likened to 5
percent of the general market.
The enhanced Credit Coaching Program offers expanded support to entrepreneurs who have been
declined business credit. The phone-based program has been rolled out to small business owners
who apply for Wells Fargo Business Direct credit products (primarily under $100,000) sold through
its retail banking stores.
Business owners who use the program will be connected with a credit specialist who will review the
business's credit profile, explain why the business was declined credit, share resources that can help
the company strengthen its credit and improve the likelihood of it being approved for credit in the
future.
Community Development Financial Institutions (CDFIs) Investments and Grants. Another key finding
in the study revealed that African-American, Asian and Hispanic small businesses are more likely to
be in the start-up and growing stages. As a result, these companies may not qualify for many
conventional bank loan products. Reporting an annual revenue of less than $50,000 were 49 percent
African American, 47 percent women and 45 percent LGBT owned businesses, contrasted to 36
percent of small company owners in general.

2. To help newer, smaller and start-up businesses access the appropriate financing and support they
need, Wells Fargo will extend $50 million in investments and $25 million in grants to Community
Development Financial Institutions (CDFIs), which serve small businesses and entrepreneurs.
Nationwide Referral Network. More diverse business owners said they were unable to obtain all the
credit they needed in the past year than companies in general. To ensure business owners are aware
of and accessing the full range of financing options available to them, Wells Fargo recently
established referral relationships with more than 20 nonprofits and other lenders across the country
participating in the U.S. Small Business Administration's (SBA) Community Advantage program.
Participants in the SBA's program specialize in providing hands-on guidance to small businesses and
offering credit to qualifying businesses in underserved markets. Wells Fargo, the nation's number
one SBA lender 7(a) in dollar volume from 2009-2014, established these relationships to provide
small business owners with an additional financing solution to better meet their lending needs.
Chamber Training Institute. On the topic of business education, the Gallup study showed that
African American, Asian and Hispanic business owners were more likely than business owners in the
general population to want to learn how to build a strong business credit application, choose a credit
product and develop a business plan.
To meet this demand, Wells Fargo is supporting a Chamber Training Institute that will instruct
leaders of diverse-segment chambers of commerce on key business and leadership topics for their
members. Diverse business owners can expect to receive training on how to access business credit
and craft strong business plans.
"There's no single answer to the challenges reflected in the study," said Stevens. "As America's
leading small business lender, we have a responsibility to do more. We believe the steps we're taking
will make a difference."
For more information about Wells Fargo Works for Small Business, visit WellsFargoWorks.com and
follow on Twitter @WellsFargoWorks.
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