Magic Johnson

By Rep, Maxine Waters (D-Calif.)

July 28, 2009 — Congress passed the Troubled Asset Relief Program (TARP) last fall to stabilize the financial markets after lending had all but frozen and our economy had come to a grinding slowdown.  Then, and now, many of you have asked how the TARP will benefit you, your families and your communities:  After all, taxpayer dollars were used to fund TARP. 

I have worked with my colleagues in Congress to try to make sure that TARP is effective – and to make sure that minority communities share in the benefits. 

In particular, minority-owned firms must be included in the government’s financial recovery efforts.  Programs such as the Public-Private Investment Partnership (PPIP) and the Term-Asset Backed Securities Loan Facility (TALF) have required substantial amounts of business expertise and assistance.  As these private firms assist our government to repair the credit markets, they are also generating profits and making new business connections that benefit our economy.

Christoper J. Williams

Minority partnerships are important for two main reasons: community reinvestment and increased employment for the black community, particularly at a time when unemployment among African Americans is nearly double that of Whites.

Many minority-owned firms are good community partners.  They give back to the Black community by reinvesting profits in new business ventures and better our community through charitable contributions. 

A good example is Magic Johnson Enterprises, which has shown investors from all communities that it can be profitable to invest close to home.  By providing residents of underserved communities with new entertainment and shopping options, Magic has also been able to increase his wealth. Of course, Magic already had amassed significant financial resources to draw on from basketball success, but his outreach and investment initiatives truly serve as important models in the community.
Secondly, minority partnerships will increase employment for the Black community. 

While many colleges and universities have increased their enrollment of African Americans and other minorities, not all Wall Street firms have sufficiently increased their hiring of talented, qualified minority professionals.  Minority-owned firms provide opportunities for smart and hard-working attorneys, accountants and investment bankers to excel and shine on Wall Street just as well as they do on Main Street. 

Over the past year I have been holding a series of minority-inclusion meetings with various government agencies.

On Friday at a Congressional hearing, Treasury Secretary Timothy Geithner and I discussed increasing opportunities for minority-owned firms, and I was satisfied with Secretary Geithner’s pledge to work with me to increase opportunities for minority-owned firms. 

The Treasury Department in fact has recently selected a couple of minority-owned firms – Williams Capital and RLJ, founded by BET creator Bob Johnson – as fund managers in the PPIP program. 

However, there are certainly additional quality minority-owned firms that should have an opportunity to prove their abilities.

Congress and Administration officials must find more ways to involve and engage the Black community so that diversity and diversification are not treated as afterthoughts.

I will keep pressure on key federal officials and agencies to ensure that minority-owned firms have a meaningful role contributing to our nation’s ongoing economic recovery process and building a foundation for their continued and sustained success.

What  do you think government should do to create employment opportunities in the African American community and help minority-owned businesses? 

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