Magic Johnson and his Life Insurance Company have provided $100M in small business loans for women and minority-owned small businesses.
EquiTrust Life Insurance which Magic owns has distributed loans through the Small Business Administration’s Federal Paycheck Protection Program in partnership with MBE Capital Partners a New Jersey-based non-bank lender that works closely with minority-owned businesses.
Johnson was taken aback when the Lakers, his former team, received a $4M loan as part of the Federal Govts PPP. He was excited to hear the team returned the loan.
It’s been rumored that since the pandemic began in March forcing shutdowns everywhere, over 90% of businesses owned by Blacks, Latinos, and Native Hawaiians or Pacific Islanders have been highly unlikely to secure a PPP loan through major banks and credit unions.
For Caucasian business owners, it’s a 97% approval rate, while Asian Americans are being approved at about a 75% rate. This is a true sign of this country’s systemic racism at its core.
Even with a grand total of $409B which included ($349B) in upfront funds as well as another ($60B) being released by Congress in the CARES (Coronavirus Aid Relief And Security Act), minorities were still left out of the loop to receive the necessary funds to keep their businesses afloat.
Johnson, a renowned businessman and the greatest point guard to ever play, led the Lakers to 5 NBA Championships in his illustrious Hall Of Fame career.
The name Magic Johnson is synonymous with star power and social consciousness. From his chain of movie theatres and numerous other ventures to his ability as an executive to lure LeBron James to the Lakers and help to secure the 2020 COVID-shortened World Series for LA by paying Mookie Betts what Boston wouldn’t. Magic does big things and pushes the envelope in a relentless pursuit for success.
The basketball and business savant has always given back and to have him to make this venture available at a time where many minority business owners are at their wits end is a credit to his upbringing, connection to the community and continued dedication to combatting systemic racism and enhancing the quality of life for future generations of African-Americans.