This year has proved to be a challenging time for entrepreneurs everywhere. The Coronavirus pandemic has halted almost all small businesses thanks to state Stay-At-Home orders. While everyone is forced to stay inside, the bills for their businesses keep coming in like nothing else is going on in the world. Because of this, the government has announced several different loan options for businesses, specifically small businesses, but many quickly learned that the system was rigged against minority owners.
Many cash fluid companies, who didn’t need bailouts, loans, or any assistance in the first place, received the loans and funding meant for small businesses and those in need, though multiple businesses started returning the money once news circulated to the masses. However, many minority entrepreneurs are still stuck with limited-to-no option for help to keep their business afloat. Luckily, former Laker Magic Johnson saw this dilemma and has opted to help with the issue, according to CNN.
Johnson announced that EquiTrust Life Insurance Co., of which he owns a majority, is providing $100 million in capital to fund federal loans for minority and women business owners who have been hit hard by the coronavirus pandemic.
EquiTrust will work with MBE Capital Partners, a lender that specializes in asset-based loans for minority-owned small businesses, to distribute the loans through the federal government’s Paycheck Protection Program.
The loans are aimed at supporting people of color and women who operate businesses in underserved communities, according to a news release.
Magic Johnson will essentially be the middle man between the Paycheck Protection Program and minority business owners, making sure they get the help they need if eligible, as the program should have always been. Good job to Magic for stepping up while everyone else stood by watching the unfair antics take place.