COVID-19 has placed a stranglehold on society and the U.S. economy. The actions of participating in social activities have been replaced with social media challenges and battles. In addition to eliminating social life, the coronavirus pandemic has delivered a massive blow to the economy. In the United States unemployment is sky high. During the course of a four week span 22 million Americans filed for unemployment.
The pandemic has also taken a catastrophic toll on minority-owned businesses. Many have been forced to stop operating as a result of the crisis. As they remain closed, some face the probability of not reopening due to the lack of capital. The money concerns start with being able to pay rent and payroll.
An option for minority business owners seeking financial relief is the SBA. The Small Business Administration offered the $350 billion Paycheck Protection Program which awarded small businesses a loan that could turn into a free grant if used to cover payroll and allowed expenses. The assist from the SBA seemed to be the relief minority business owners needed. The problem occurred when the funds were exhausted in two weeks. Many minority businesses didn’t get the chance to receive the assistance from the SBA, but a former NBA great is looking to pick up the ball and throw the assist.
Earvin “Magic” Johnson was formerly introduced to the world in 1979 when his Michigan State Spartans battled his future NBA rival Larry Bird’s Indiana State Sycamores in the NCAA Championship Game. Michigan State defeated Indiana State 75-64, and Johnson was voted Most Outstanding Player. After the collegiate championship victory, he would move on and transition to the professional game. The 6 foot 9 inch point guard was drafted by the Los Angeles Lakers. Magic Johnson ran the show as he navigated the fast break offense known as “Showtime.” Magic scored when needed, but the dazzling assists he threw to his teammates were the key to the Showtime Lakers success. The team would become a dynasty during the 80’s as they won 5 NBA titles.
After retiring from the game, the Hall of Fame basketball player has constructed a Hall of Fame business portfolio. Magic Johnson Enterprises is a private investment company owned by the NBA legend. The company has invested ownership in the Los Angeles Lakers, movie theaters, T.G.I Friday’s, Sodexo, and Burger King. Johnson’s business savvy is obvious as he’s built up a net worth of $600 million.
With the future of small businesses in urban communities at risk, the Laker legend has teamed up with MBE Capital Partners to offer $100 million in loans to the minority-and-women owned companies. The funds will be distributed through the Small Business Administration’s Paycheck Protection Program.
“We have to remember that these businesses have been in urban communities for a long time. They’ve been doing great things, and they probably didn’t have a relationship with the banks when the stimulus package went out. So now, we’re able to say, hey, you can have a relationship with us,” Johnson stated.
As a basketball player Earvin “Magic” Johnson dished out a record number of assists, but this recent
assist may be the most significant.
