Magic Johnson's insurance company to fund $100 million for minority-owned businesses

Magic Johnson company EquiTrust Life Insurance Co, will be reportedly providing $100 million for mirity-owned businesses. EquiTrust Life Insurance Co will fund money via  Small Business Administration’s (SBA) Paycheck Protection Program, as y believe mir businesses are being 'overlooked' during COVID-19 pandemic. EquiTrust Life Insurance Co is majority-owned by  Magic Johnson enterprises. 

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Magic Johnson company will fund mir businesses during coronavirus crisis

As per Wall Street Journal, Magic Johnson company owned by Magic Johnson enterprises will be teaming up with MBE Capital Partners to provide PayCheck Protection Program loans. MBE Capital Partners is a n-bank lender that focuses on funding women-owned and mirity businesses. While talking to Wall Street Journal, Johnson stated that ir initiative is important as small businesses cant walk into a bank and ask for a loan.

Johnson added that he became aware of problems faced by se businesses through news reports. MBE Capital's chief executive Rafael Martinez also ticed that people applying for Paycheck Protection Problem were facing problems as y were reportedly favouring companies with previous relationships. After Martinez started receiving calls to help, ir collaboration with Magic Johnson company took place. 

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Many big companies, including Johnson's former NBA team Los Angeles Lakers, received funding as y have less than 500 employees. However, y returned funding after facing public criticism. Magic Johnson company was aware of reason behind small businesses t receiving funds, especially when larger companies had good relationships with banks.

MBE and Magic Johnson company finalised ir deal this month. y were brought toger by National Action Network, which is a civil rights organization. 

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According to Martinez, Johnson's $100 million will be promptly forwarded to 5000 Pay Protection Program's loans that MBE Capital had approved with  Small Business Administration. 80% of mirity-owned businesses have reportedly asked for around $25,000 owing to ir small size. ir companies are apparently choosing people one else is willing to help.

government had reportedly instructed SBA to guide lenders in helping small businesses. However, y reportedly failed to do so. 

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Magic Johnson is also looking for different ways to help mirity communities, as per Wall Street Journal. This includes raising money to help give meals to inner cities while looking to extend ir deal with MBE Capital. During his interview, Johnson stated that priority will be mirity communities. As per Johnson, this is a 'life and death' matter for many business owners and y will help m as y have 'where else to turn'.