Magic Johnson Secures $325M To Support Minority-Owned Businesses
Magic Johnson believes businesses are an essential part of our economy and are crucial to economic recovery from the pandemic.
Nearly 41 percent of Black-owned businesses shuttered due to financial woes that stemmed from the pandemic between the months of February and April. Black business owners have experienced several barriers when it comes to receiving federal aid. A report compiled by the Federal Reserve Bank of New York revealed that a mere 20 percent of PPP loans went to areas that had a high concertation of Black-owned businesses. Johnson hopes to reverse the trend.
In the midst of the COVID-19 pandemic, NBA legend Earvin “Magic” Johnson has put the emphasis on supporting Black-owned organizations that have been essentially affected by the pandemic. As indicated by Black Enterprise, Johnson collaborated with Carver Federal Savings Bank and MBE Partners for the making of a Paycheck Protection Program (PPP) intended for minority and female-owned organizations.
His company EquiTrust Life Insurance Co., MBE Partners and Carver Federal Savings Bank have secured a total of $325 million to provide loans for women and minority-led businesses, nonprofits and religious organizations. “When we launched the EquiTrust MBE PPP loan program in May, we anticipated funding $100 million in loans. Not only did we exceed that threshold, but we received over 21,000 applications from small businesses proving a need for the $325 million,” Johnson said
He is immensely passionate about the growth of minority small businesses and is committed to making sure they have the things required for success. “These businesses are a vital part of our economy and essential to the economic growth necessary for recovery from the pandemic. We have a responsibility to ensure an equitable distribution of federally backed capital to minority-owned small businesses.”
It’s great to see celebs like Johnson give back to businesses in need during such unprecedented times.