NBA great and business mogul, Magic Johnson, partnered with MBE Capital Partners to offer $100 million in loans to minority and women-owned businesses affected by Covid-19. These companies have been “shut out” of the Paycheck Protection Program loans administered by the SBA.
Not only are minority companies losing employees but they are at risk of permanently closing due to stay-at-home orders caused by the Coronavirus pandemic. The majority of these businesses do not have relationships with big banks, which is the main issue.
Minority business owners were left out of the initial $349 billion dollar funding deal which was apart of the $2 trillion CARES ACT. Huge companies who were not eligible for the funds took advantage of loopholes in the program and gobbled up the money.
More funding was added and a few restrictions were placed, including $60 billion dollars set aside for small businesses.
Magic’s Los Angeles Lakers gave back their PPP loan as a result of scrutiny. Recognizing his community’s struggle both in health and finances, the CEO stated: “Financially, this has really hurt our community as well as health-wise it’s hurt our community, too.” Johnson added about the program, “This will allow them to keep their employees and keep their doors open.”
The MBE says the application process is more streamlined. The loans were funded through Johnson’s EquiTrust Life Insurance Company and will be provided through the Small Business Administration’s Paycheck Protection Program.
Minority and women-owned businesses can apply for Magic Johnson’s PPP loan here.
Source: CNBC
Photo credit: BET
