Wells Fargo Says Fed Cap Is Limiting Small-Business Relief (2)

Wells Fargo & Co. said it can’t fully meet demand from small businesses rushing to participate in a U.S. relief program because of constraints imposed by the Federal Reserve on the bank’s growth.

The company has capacity to lend $10 billion to small-business clients under the $349 billion U.S. program, but customers already have expressed more interest than that, Wells Fargo said in a statement late Sunday. The firm will therefore focus on helping nonprofits and businesses with fewer than 50 employees.

“While we are actively working to create balance-sheet capacity to lend, we are limited in our ongoing ability ...