Magic Johnson, who helped the Los Angeles Lakers win five NBA titles through the 1980s and former National Basketball Association, is in action to help the small urban businesses succeed during the pandemic. He says they need the money more so than ever to keep their bills paid and pay their employees.
He has set up $100 million dollar loans to minority and women-owned companies because they have been left out due to not having enough relationships with banks.
He's such a genuine person and really wants to help look out for these families.
According to CNBC:
The CEO of Magic Johnson Enterprises collaborated with MBE Capital Partners to offer $100 million in loans to minority- and women-owned companies hurt by stay-at-home orders due to Covid-19. The loans were funded through Johnson’s EquiTrust Life Insurance Company and will be provided through the Small Business Administration’s Paycheck Protection Program.
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 relationships with bigger banks. Democratic lawmakers including Sen. Kamala Harris of California have even called on the SBA and Treasury Department to ensure minority-owned businesses are not shut out of aid.
But with financial help limited, some businesses are in jeopardy of closing for good.
Johnson stated: “We have to remember that these businesses have been in urban communities for a long time. They’ve been doing great things, and they probably didn’t have a relationship with the banks when the stimulus package went out. So now, we’re able to say, ‘Hey, you can have a relationship with us.’”
“Financially, this has really hurt our community as well as health-wise it’s hurt our community, too,”