Current:Home > ScamsA federal appeals court blocks a grant program for Black female entrepreneurs-LoTradeCoin
A federal appeals court blocks a grant program for Black female entrepreneurs
View Date:2024-12-23 21:18:26
A legal battle between a program that awards grants to female entrepreneurs of color and a conservative nonprofit organization is expected to raise broader legal questions on the use of diversity programs in corporate America.
The 11th U.S. Circuit Court of Appeals in Atlanta ruled on Saturday to temporarily block the Fearless Fund from running its Strivers Grant Contest, which awards $20,000 grants to small businesses that are led by at least one woman of color and other requirements.
The panel of judges decided 2-1 that the venture capital fund is "racially discriminatory."
The American Alliance for Equal Rights filed a racial discrimination lawsuit against the program in August, claiming it violates the Reconstruction-era Civil Rights Act of 1866, which prohibits racial discrimination in contracts.
The Fearless Fund argues that the grants are awards and not contracts and are protected by the First Amendment.
The mission of the Fearless Fund is to bridge the gap in venture capital funding for women of color. It says that less than 1 percent of total venture capital funding raised by U.S. companies in 2018 was allocated toward businesses founded by women of color. The program also tries to help grow small businesses started by women of color.
The order pausing the Fearless Fund is another turn in what could be a long legal fight. The temporary injunction reverses a ruling by a U.S. District Court judge last week that denied the Alliance's effort to halt the program.
Conservative activist Edward Blum, founder of the American Alliance for Equal Rights, worked for years to overturn affirmative action policies in colleges and universities. Blum won a major legal victory in June when the Supreme Court effectively ended race-conscious policies in higher education.
In a statement to NPR on Monday, Blum said his organization is pleased by the court's most recent decision and hopeful for a favorable outcome.
"The members of the American Alliance for Equal Rights are gratified that the 11th Circuit has recognized the likelihood that the Fearless Strivers Grant Contest is illegal. We look forward to the final resolution of this lawsuit," Blum said.
Attorney Von Bryant, who represents the interests of venture capitalists, says the Alliance is failing to consider the many disadvantages people of color have experienced for generations in entrepreneurship.
"In the context of historically systemic racism, what the Fearless Fund grant is really trying to do is be a beacon for people who have historically and presently had an uphill battle for funding," Bryant said. "This program is trying to address that."
Bryant says an important question is at stake.
"The plaintiffs in this case are fighting for quote 'equality,' but is that equitable?" he asks.
Bryant also notes that in addition to funding, the Fearless Fund program provides valuable mentorship and networking opportunities that are disparately unavailable to Black female entrepreneurs.
The temporary injunction pauses the grants while a separate panel decides what happens next in the case.
"We strongly disagree with the decision and remain resolute in our mission and commitment to address the unacceptable disparities that exist for Black women and other women of color in the venture capital space," the Fearless Fund said in a statement to the Associated Press.
veryGood! (74)
Related
- The Best Gifts for People Who Don’t Want Anything
- 'Dancing with the Stars' Season 32 finale: Finalists, start time, how to watch
- Grassroots college networks distribute emergency contraceptives on campus
- Kissing Booth Star Joey King Responds to Jacob Elordi’s “Unfortunate” Criticism of the Franchise
- Mike Tyson emerges as heavyweight champ among product pitchmen before Jake Paul fight
- 4 killed, including a 1-year-old boy, in a shooting at a Dallas home
- The fourth GOP debate will be a key moment for the young NewsNation cable network
- 'Wonka' movie review: Timothée Chalamet's sweet take on beloved candyman (mostly) works
- John Krasinski is People's Sexiest Man Alive. What that says about us.
- Ford, Jeep, and Jaguar among 79,000 vehicles recalled: Check car recalls here
Ranking
- University of Illinois Urbana-Champaign chancellor to step down at end of academic year
- When is New Year's day? Here's when the holiday falls for 2024 and why we celebrate it.
- NHL Stanley Cup playoff bracket: League standings, potential first-round matchups
- Man charged in killings of 3 homeless people and a suburban LA resident, prosecutors say
- Former North Carolina labor commissioner becomes hospital group’s CEO
- A long-lost piece of country music history is found
- USC quarterback Caleb Williams will not play in bowl game; no NFL draft decision announced
- Alicia Keys autobiographical stage musical 'Hell’s Kitchen' to debut on Broadway in spring
Recommendation
-
American Idol’s Triston Harper, 16, Expecting a Baby With Wife Paris Reed
-
Repeat that again? Powerball's winning numbers have some players seeing a double opportunity
-
If you like the ManningCast, you'll probably love the double dose ESPN plans to serve up
-
Judge weighing Ohio abortion rights amendment’s legal impact keeps anti-abortion groups clear
-
Georgia lawmaker proposes new gun safety policies after school shooting
-
Doug Burgum ends 2024 presidential campaign
-
Worried about job cuts heading into 2024? Here's how to prepare for layoff season
-
Taylor Swift attends Chiefs game with Brittany Mahomes – but they weren't the only famous faces there