Magic Johnson Offers $100 Million in Loans to Minority and Women-Owned Businesses
Magic Johnson’s life insurance company has teamed up with MBE Capital Partners to offer $100 million in loans to women-owned and minority-owned businesses who have been negatively impacted by the COVID-19 lockdown.
African-American and Latino businesses have been left out of receiving funding from the Small Business Administration’s Paycheck Protection Program, due to a lack of relationship with big banks. Senator Kamala Harris took note of this and called on the SBA and the Treasury Department to ensure minority businesses aren’t left out of the new $60 billion aid package.
“We have to remember that these businesses have been in urban communities for a long time,” said Johnson. “They’ve been doing great things and they probably didn’t have a relationship with the banks when the stimulus package went out. Now we’re able to say. ‘Hey, you can have a relationship with us.”
CEO of MBE Rafael Martinez said the 100,000 businesses in urban communities will receive this funding and will be vetted through the SBA’s guidelines.
The Realist Woman’s take:
Magic Johnson has always looked out for under-represented and this $100 million loan to minority and female-owned businesses are timely and extremely generous. I’m glad he brought up the fact that every business owner is not equal in the eyes of big banks. This loan is an opportunity for many business owners to establish relationships with financial enterprises.
These groups have been left behind by bigger banks