The Federal Reserve is modifying the asset cap it has imposed on Wells Fargo so the bank can participate in the government's business lending programs.

The change allows the bank to participate in the central bank's business lending program without having it count against the $1.95 trillion cap that will remain in place.

In a move that was expected, the central bank said Wells will have to return proceeds it gets from the Payment Protection Plan and a coming Main Street lending program either back to the Treasury Department or to a nonprofit.

The Fed had imposed the restrictions following the bank's fake account scandal in which it created millions of accounts for customers without their knowledge. Associates were under sales pressure in a program that Wells Fargo has since abandoned.

Wells Fargo is the third-largest bank in the U.S. by assets, making its participation in the lending programs critical.