Citing considerations that minority-owned companies are being missed, Earvin “Magic” Johnson stated his EquiTrust Life Insurance coverage Co. will present $100 million in capital to fund loans via the Small Enterprise Administration’s Paycheck Safety Program.
EquiTrust, which is majority owned by Magic Johnson Enterprises, will associate with MBE Capital Companions, a Fort Lee, N.J., based mostly nonbank lender that focuses on financing minority- and women-owned corporations, to supply Paycheck Safety Program loans.
“What we’re launching right here now could be so essential as a result of we’re going to save lots of lots of small, minority companies as a result of they will’t simply stroll into the financial institution and get that mortgage,” Mr. Johnson stated in an interview.
Mr. Johnson stated he grew to become conscious, due to information reviews, of the wrestle many small debtors confronted in making use of for loans after the Paycheck Safety Program launched on April 3. It was a part of the federal authorities’s preliminary roughly $2 trillion stimulus package deal to fight the financial fallout of the coronavirus pandemic.
Rafael Martinez, chief government at MBE Capital, was additionally listening to complaints from shoppers who couldn’t get in on the primary $350 billion spherical of funding earlier than the cash dried up April 16. Some lenders had prioritized functions from customers with existing relationships.