Written by Chelsie Lane

Black, Latino and other minority businesses have found it exceedingly difficult to secure economic relief from the impact of the Covid-19 pandemic. Based on a survey conducted by racial equality groups Color of Change and UnidosUS, out of the $650 billion dollars promised to help small businesses survive and pay employees, only 12% of Black and Hispanic business owners who applied for the forgivable low-interest loans have received it. “The Small Business Administration’s Paycheck Protection Program is a driver of racial inequality, rather than a means to provide desperately needed relief for the small businesses at the heart of Black and Brown communities,” Color of Change President, Rashad Robinson said in a statement.

Multiple news outlets and blogs have been reporting that the Small Business Administration’s Paycheck Protection Program is biased when prioritizing which businesses will actually receive the needed assistance. Big companies like Ruth Chris and the LA Lakers have been outed for taking the loans away from the actual businesses that need help.

Earvin “Magic” Johnson noticed the injustice and decided to stand up for minority businesses. EquiTrust Life Insurance Co., majorly own by Magic Johnson Enterprises, recently partnered with MBE Capital Partners, a lender that specializes in asset-based loans for minority-owned small businesses. The partnership would provide $100 million of capital to fund the small businesses that didn’t receive the SBA’s PPP loans.

“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,” says Johnson on MSNBC. “… We wanted to make sure that minority-owned businesses got small business loans through the PPP program.”

CEO of MBE Capital, Rafael Martinez has also stated their goal is to secure resources for small business that will retain them through the pandemic. “Johnson’s EquiTrust is providing critical financial support to underserved communities and businesses that have been traditionally neglected,” EquiTrust and MBE Capital Partners said in a joint news release.

Black and Latino businesses have found it exceedingly difficult to secure economic relief from the impact of the Covid-19 pandemic. Based on a survey conducted by racial equality groups Color of Change and UnidosUS, out of the $650 billion dollars promised to help small businesses survive and pay employees, only 12% of Black and Hispanic business owners who applied for the forgivable low-interest loans have received it. “The Small Business Administration’s Paycheck Protection Program is a driver of racial inequality, rather than a means to provide desperately needed relief for the small businesses at the heart of Black and Brown communities,” Color of Change President, Rashad Robinson said in a statement.

Multiple news outlets and blogs have been reporting that the Small Business Administration’s Paycheck Protection Program are biased when prioritizing which businesses will actually receive the needed assistance. Big companies like Ruth Chris and the LA Lakers have been outed for taking the loans away from the actual businesses that need help.

Earvin “Magic” Johnson noticed the injustice and decided to stand up for minority businesses. EquiTrust Life Insurance Co., majorly owned by Magic Johnson Enterprises, recently partnered with MBE Capital Partners, a lender that specializes in asset-based loans for minority-owned small businesses. The partnership would provide $100 million of capital to fund the small businesses that didn’t receive the SBA’s PPP loans.

“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,” says Johnson on MSNBC. “… We wanted to make sure that minority-owned businesses got small business loans through the PPP program.”

CEO of MBE Capital, Rafael Martinez has also stated their goal is to secure resources for small business that will retain them through the pandemic. “Johnson’s EquiTrust is providing critical financial support to underserved communities and businesses that have been traditionally neglected,” EquiTrust and MBE Capital Partners said in a joint news release.

Black and minority businesses who are interested in securing loans and have not been successful in getting economic relief should visit this link for more information.

Black and minority businesses who are interested in securing loans and have not been successful in getting economic relief should visit mbecp.com for more information.