Magic Johnson is helping minority and women small-business owners affected by the global pandemic. The NBA legend and businessman connected with Capital Partners to offer up $100 million in loans aimed at providing “critical financial support to underserved communities and businesses that have been traditionally neglected.”
The loan idea was motivated by a growing number of Black, Latino, and women owned-businesses that have been shut out from receiving PPP loans from the government. According to Black Enterprise, MBE Capital can process up to five loans per day.
“This will allow them to keep their employees and keep their doors open,” Johnson told CNBC on Tuesday (May 19).
Johnson’s EquiTrust Life Insurance partnered with MBE Capital Partners for the loans, which will be dispersed through the Small Business Administratio’s Paycheck Protection Program. The goal is to help 100,000 businesses.
“We have to remember that these businesses have be in urban communities for a long time,” added Johnson. “They’re 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.”