Magic Johnson Will Provide $100 Million To Fund Loans To Minority-Owned Business
Former NBA star Magic Johnson’s EquiTrust Life Insurance Co. is pledging $100 million in funding to support struggling minority and women business owners with federal loans, according to CNN.
Johnson owns a majority of the insurance company, and EquiTrust is partnering with MBE Capital Partners to help spread the government’s PPP loans. MBE Capital Partners is known for specializing in “asset-based loans for minority-owned small businesses.”
On Sunday, Johnson spoke on MSNBC saying, “These are incredible businesses, small businesses, that have been the pillar of our community that also employ a lot of black and brown people in our community...We wanted to make sure that minority-owned businesses got small business loans through the PPP program.”
EquiTrust and MBE Capital Partners took to a joint news release to state, “Johnson's EquiTrust is providing critical financial support to under-served communities and businesses that have been traditionally neglected...These small and diverse businesses often have difficulty developing strong lending relationships with big banks.”
MBE Capital CEO Rafael Martinez told MSNBC that the project’s aim is to find resources for 100,000 businesses. The news follows a string of negative backlash towards the government’s Small Business Administration for confusing guidelines, large delays, and providing overall uncertainty for loan procedures.