With many businesses struggling to stay afloat due to the coronavirus (COVID-19) pandemic, Los Angeles Dodgers part-owner Magic Johnson has stepped up in a major way to provide relief to those in need.
The five-time NBA champion, who owns a majority stake in EquiTrust Life Insurance Co., announced that he is collaborating with MBE Capital Partners to give $100 million to fund federal loans to minority and women-owned businesses.
The funding will be distributed through the Small Business Administration’s Paycheck Protection Program.
During a recent appearance on MSNBC, Johnson explained the loans are designed to help small businesses in urban communities keep their doors open amid these difficult times:
“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. So what we did, we came together in partnership, MBE Capital, Equitrust and I, and we wanted to make sure that minority-owned businesses got small business loans through the PPP program.
“I will write a $100 million check, and Rafael (Martinez) and his company will deploy that money and make sure they vet the small business in our community. This is really a powerful two companies coming together, to make sure these women-owned business, these minority-owned businesses, can still survive and thrive during this time.”
Johnson is hopeful the money will assist 100,000 small businesses. The kind act figures to go a long way for owners that missed out on securing funds from the government.
Congress provided $349 billion for the PPP loan program as part of the $2 trillion stimulus package signed into law in April, but the money was depleted within days — leaving many on the outside looking in.
An additional $310 billion was approved, including $60 billion for small companies, but many minority owned-businesses were denied due to a lack of relationship with the bigger banks.
Johnson is the latest member of the Dodgers organization to lend a helping hand to people facing financial uncertainty because of the pandemic.
Dodgers Spanish-language broadcaster Jaime Jarrín recently donated at least $30,000 to the Los Angeles Regional Food Bank through the Jaime & Blanca Jarrín Foundation and in partnership with Los Defensores to assist with relief efforts.
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