Wells Fargo Bank Denys Firearms Business Funding

[montezumaz]

O'Drama Wins Second Term; Wells Fargo Snubs Firearms Business, No Longer Supports Second Amendment
http://www.prnewswire.com/news-relea...178065871.html

BMADDOX ENTEPRISES, LLC, doing business as FFL123.com, South Dakota Silencer and North Dakota Silencer, has been banking with Wells Fargo in South Dakota since inception. Over the last few years, the firearms industry has experienced unprecedented growth. This growth can be partially attributed to the NRA (National Rifleman Association) and NSSF (National Shooting Sports Foundation) working on public relations to enhance public opinion related to firearms ownership and the hunting sports, although a significant impact can be attributed to the left-leaning Obama Administration and gun owners' fears of harsh new firearms regulations. Vice President of Business Banking at Wells Fargo, called Friday Nov 2nd to alert Mr. Maddox, owner of BMADDOX ENTERPRISES, that Wells Fargo would not extend business credit or loans to any firearms related business, period. "Your credit is impeccable and your business model is sound, but our corporate legal department will not allow us to extend credit to any business related to firearms. We understand you are fully licensed under federal and state law, although … the corporate directive is still no."

[lonewolf204]

This will probably be the first of many decisions of the big banks to help take our guns away!

[GunnyGene]

There's political pressure behind this. A bank does not refuse to make money unless there is some serious political reason for it. A back door move if I ever saw one.

[jack404]

how much they need ? what security they got ? folks here looking to invest..

[stumpjumper]

wow, i'm running out of banks to use.

[Double D]

Originally Posted by GunnyGene

There's political pressure behind this. A bank does not refuse to make money unless there is some serious political reason for it. A back door move if I ever saw one.

Yep.

[ShawnDow]

Im curious if my local Credit Union will give me the same kind of response, when I get my business plan all in order.. I just want a small sportsman / reloading shop for our small town. Curious as to how far the governmental fingers pry into financial lending.

[Gabe Boehmer]

Originally Posted by montezumaz

O'Drama Wins Second Term; Wells Fargo Snubs Firearms Business, No Longer Supports Second Amendment
http://www.prnewswire.com/news-relea...178065871.html

BMADDOX ENTEPRISES, LLC, doing business as FFL123.com, South Dakota Silencer and North Dakota Silencer, has been banking with Wells Fargo in South Dakota since inception. Over the last few years, the firearms industry has experienced unprecedented growth. This growth can be partially attributed to the NRA (National Rifleman Association) and NSSF (National Shooting Sports Foundation) working on public relations to enhance public opinion related to firearms ownership and the hunting sports, although a significant impact can be attributed to the left-leaning Obama Administration and gun owners' fears of harsh new firearms regulations. Vice President of Business Banking at Wells Fargo, called Friday Nov 2nd to alert Mr. Maddox, owner of BMADDOX ENTERPRISES, that Wells Fargo would not extend business credit or loans to any firearms related business, period. "Your credit is impeccable and your business model is sound, but our corporate legal department will not allow us to extend credit to any business related to firearms. We understand you are fully licensed under federal and state law, although … the corporate directive is still no."

My name is Gabe Boehmer, and I'm a Wells Fargo spokesman. The customer’s claim that Wells Fargo rejected his request for credit based solely on the industry he’s in is simply untrue. We do not have a credit policy that prohibits financing for arms or armaments. In fact, Wells Fargo has several relationships with business banking and commercial banking borrowers in firearms-related industries. In this particular case, the customer requested a type of credit with terms we don’t offer. We discussed other options with the customer, which he declined.

[jedwil]

Originally Posted by Gabe Boehmer

My name is Gabe Boehmer, and I'm a Wells Fargo spokesman. The customer’s claim that Wells Fargo rejected his request for credit based solely on the industry he’s in is simply untrue. We do not have a credit policy that prohibits financing for arms or armaments. In fact, Wells Fargo has several relationships with business banking and commercial banking borrowers in firearms-related industries. In this particular case, the customer requested a type of credit with terms we don’t offer. We discussed other options with the customer, which he declined.

Thanks for your input. I wont make that instant banking change...

[Dog Soldier]

A rush to judgement. It is more painful when you are the victim.

[ampaterry]

We appreciate that input, Gabe -

Thank you!

You are going to be busy; this story is spreading on the web -

[Double D]

So, this response was a lie? The business applying for the loan made this statement up? Please Mr Boehmer, clarify if you would.....

Your credit is impeccable and your business model is sound, but our corporate legal department will not allow us to extend credit to any business related to firearms. We understand you are fully licensed under federal and state law, although … the corporate directive is still no."

[carver]

I don't know if this story is true, or not. What I do know is that Wells Fargo, and other banks, owe millions of dollars to the Federal Government (the tax payer) for the bail outs. Take a long look at GM (Government Motors). What's the difference between GM, or any other company that took bail out money?

[Dog Soldier]

This started as a firearms freedom issue. We are now making it into a political issue not related to firearms. Do we need more allies or do we want more enimies?

[ampaterry]

Checking the net, I find this story posted a few places.

Checking ffl123.com, I find no mention of it, dispite the supposed quotation from there in this article.

I have contacted ffl123 to see if they made this claim or not.

[time2shoot]

Don't know if it is true or not.
And I'm hear in South Dak. about 20 miles from there.
All i know is that, If Gabe Boehmer Is a spokesman for wells fargo.
Why is he discusing some ones banking bissness with strangers.

In this particular case, the customer requested a type of credit with terms we don’t offer. We discussed other options with the customer, which he declined.

[ampaterry]

I believe that whether or not a major bank refuses to deal with firearms companies IS a firearms issue, DS -

I have verified that Gabe Boehmer does indeed speak for Wells Fargo.

I am now working to verify that the original story is correct as reported.

There will be NO battles over this here, and it will not get political.

[FFL123]

Originally Posted by Gabe Boehmer

My name is Gabe Boehmer, and I'm a Wells Fargo spokesman. The customer’s claim that Wells Fargo rejected his request for credit based solely on the industry he’s in is simply untrue. We do not have a credit policy that prohibits financing for arms or armaments. In fact, Wells Fargo has several relationships with business banking and commercial banking borrowers in firearms-related industries. In this particular case, the customer requested a type of credit with terms we don’t offer. We discussed other options with the customer, which he declined.

Gabe - wait a second! There is no way you are a Wells Fargo spokesman, they would never allow you to discuss the specifics of my case in a public forum. Although, I can discuss and will outline the specifics of my loan process below. I have had several reporters contact me and I have explained to them the same situation noted below....

My business banker was:
Amange Q. Aware
Vice President
Wells Fargo Bank N.A.
101 N Phillips Avenue
Sioux Falls, SD 57104
605-575-8736
605-575-4972 (fax)
amange.q.aware@wellsfargo.com

Details -

I am buying a building for my business (Dakota Silencer), cheapest money is a home equity loan because secured by a tangible asset. I applied for a home equity loan increase at Wells Fargo. I was advised the home equity loan increase approval might not be approved before the closing date on the new building. Wells Fargo suggested the home appraisals in my state of SD are really backed up due all the refinancing activity.

Wells Fargo suggested I apply for a backup funding source through their business division as a backup plan if home equity loan increase was delayed. The business line of credit only takes 2 days, so this appeared to be a great option.

I met with two business bankers, main one noted above. I explained the entire business model and my two locations for selling firearms, specifically silencers. Both Wells Fargo business bankers did say they have corporate policies related to firearms businesses and they were upfront that this might not get approved.

I received a call a week later with 100% denial based on business type, firearms industry. There was no discussions on others business packages, etc. The only discussion was create a new LLC with no firearms business and try applying for a loan through a different LLC. I was advised my credit as a business and as an individual was excellent, the firearms was the sole issue at hand.

I recommend calling Amange for specifics if you truly work at Wells Fargo, he will explain exactly as I have outlined above sir.

Thanks,
Brandon L. Maddox

[ampaterry]

Outstanding, Brandon.
Gabe is indeed with Wells Fargo.
He went into no detail concerning the application, though, so I don't see anything inappropriate about his response to a news story concerning his company.

I am starting to suspect a local manager with a personal agenda here. I remember a VERY similar incident with BOA a few years ago.

If that is the case, this discussion could bring about some changes.

[FFL123]

Yes, I viewed Gabe's profile on Linkedin.com and see he works at Wells Fargo. I also see he has my business banker as one of his contacts, I think it would be odd for him to have not called Amange before trying to discredit my story.

Amange admitted day one that my business loan would need a legal review because it dealt with firearms. I think they have policies in place related to firearms businesses, whether they will admit that fact openly is another story in itself.

Thanks,
Brandon L. Maddox, Pharmacist, MBA

[BillM]

Originally Posted by FFL123

Yes, I viewed Gabe's profile on Linkedin.com and see he works at Wells Fargo. I also see he has my business banker as one of his contacts, I think it would be odd for him to have not called Amange before trying to discredit my story.

Amange admitted day one that my business loan would need a legal review because it dealt with firearms. I think they have policies in place related to firearms businesses, whether they will admit that fact openly is another story in itself.

Thanks,
Brandon L. Maddox, Pharmacist, MBA

Interesting topic. Any chance that you could get that refusal in writing?

[Double D]

Originally Posted by BillM

Interesting topic. Any chance that you could get that refusal in writing?

That would seal the deal.

[ampaterry]

That MAY not mean anything, guys -
I was in consumer finance for several years -
We NEVER put denials in writing; too many liability issues.
We would take them into a private area and explain what the problem was.
Most customers appreciated not having black marks in writing.

[Double D]

Well, if the reason he was denied was in writing......

[ampaterry]

Yeah, that would be great -

But I doubt it ever was, or will be.

I heard back from Gabe -

He says he is checking into it further.