Magic Johnson Will Provide $100 Million To Fund Loans For Minority-Owned Businesses

Melissa Rohlin

Magic Johnson's insurance company is providing $100 million to fund federal loans for minority and women-owned businesses during the COVID-19 pandemic. 

EquiTrust Life Insurance Co., of which Johnson is a majority owner, is collaborating with MBE Capital Partners to give the loans through the Small Business Administration’s Paycheck Protection Program.

"This will allow them to keep their employees and keep their doors open,” Johnson told CNBC’s “Squawk Box” on Tuesday. 

Johnson, who led the Lakers to five NBA championships during the 1980s, added that a lot of minority-owned businesses have been struggling during the pandemic. 

"We have to remember that these businesses have been in urban communities for a long time," Johnson told CNBC. "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.’”

Congress initially set aside $349 billion for PPP funds in April, but the money ran out in two weeks. Another $310 billion has since been approved. 

The new funds include $60 billion for small businesses.