MAGIC JOHNSON’S ASSIST: $100-M LOANS FOR MINORITY-OWNED BUSINESSES
Earvin “Magic” Johnson has offered $100 million in loans to minority-owned businesses left out of the Paycheck Protection Program (PPP) of the Small Business Administration (SBA).
In a story written by Jabari Young that CNBC ran on May 19, 2020, Magic Johnson, the CEO of Magic Johnson Enterprises, partnered with MBE Capital Partners to offer $100 million in loans to minority- and women-owned companies.
The National Basketball Association (NBA) legend and top LA Lakers assist man may yet deliver his biggest assist after his NBA stint to minority- and women-owned companies hurt by stay-at-home orders due to COVID-19 by funneling the loans through his EquiTrust Life Insurance Co. to allow those businesses to keep their employees and their doors open. “This will allow them to keep their employees and keep their doors open,” Johnson told CNBC on Tuesday.
Congress set aside $349 billion for PPP funds in April as part of a $2 trillion stimulus package, but the money depleted quickly, forcing another round of aid. New funds include $60 billion set aside for small businesses. But even with new money available, African-American and Latino-owned businesses have been left out of the new PPP funds due to a lack of relationship with bigger banks. Democratic lawmakers, including California Sen. Kamala Harris even called on the SBA and Treasury Department to ensure minority-owned businesses are not shut out of aid. #coronavirusimpact #COVID19