Since April, when the $2 trillion COVID-19 Stimulus Invoice was handed and the Small Enterprise Administration’s Paycheck Safety Program (PPP) started to deal with COVID-19’s monetary hits, the primary research to have a look at the novel coronavirus’ impression on Black and Latinx enterprise homeowners, performed by the Colour Of Change and UnidosUS, discovered that 45 p.c of those companies should shut by the tip of the 12 months, and just one in 10 reported that they’d acquired funding.
Responding to the shortage of federal assist for entrepreneurs of coloration, former Nationwide Basketball Affiliation (NBA) all-star Magic Johnson and Rafael Martinez, majority proprietor of the asset-based lender MBE Capital Companions, introduced they may present $100 million in loans, on MSNBC’s “PoliticsNation with Al Sharpton,” on Could 17.
“I built my business in urban America, in the inner city and I was once one of those small business owners. So, I know how important it is to keep those employees working, keep those Black and Brown people working in those small businesses in our community,” Johnson informed Sharpton. “And we can’t afford to let these people lose their businesses who have been working so hard to build their business and we want to help them grow their business and have scale, because that’s what’s important. Because if they get scale, then they can hire more people and the more people working the better for our community; because we know how high unemployment is in our community and this virus really affected our community in two different ways—health-wise as well as financial wise.”
The Federal Stimulus Survey Findings research, performed from April 30 to Could 12, confirmed that Black and Latinx enterprise homeowners are certainly apprehensive in regards to the points that Johnson talked about. These considerations embody not receiving federal help to forestall layoffs, being unable to droop foreclosures till the disaster ends, attaining monetary help to assist them pay salaries and different enterprise bills and placing a pause on damaging credit score hits.
Upon recognizing that the PPP left many small enterprise homeowners of coloration out within the chilly, Martinez informed Sharpton that when he and Johnson determined to fill the federal monetary void, they did so in every week. “We want to make sure that everybody understands this is a call to action. This money is not going to wait for anybody. So, it’s there, we’re doing our job, and there’s a lot more to be done,” Martinez mentioned. “Our goal with Magic and the teams is really to reach 100,000 businesses. So, we need action yesterday, not tomorrow or next week. Nobody is going to wait for us.”
To observe the interview and announcement, go to PoliticsNation/MSNBC. Study extra in regards to the loans on the Nationwide Motion Community.
SOURCE: Black PR Wire