A grant program for Black women business owners is discriminatory, appeals court rules

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A grant program for Black women business owners is discriminatory, appeals court rules
Edward BlumBlack WomenFederal Court Of Appeals
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NEW YORK (AP) — A U.S. federal court of appeals panel suspended a venture capital firm's grant program for Black women business owners, ruling that a...

NEW YORK — A U.S. federal court of appeals panel suspended a venture capital firm's grant program for Black women business owners, ruling that a conservative group is likely to prevail in its lawsuit claiming that the program is the discriminatory.

The court ordered the Fearless Fund to suspend its Strivers Grant Contest, which provides $20,000 to businesses that are majority owned by Black women, for the remainder the lawsuit. The ruling reversed aruling last year that the contest should be allowed to continue because Blum's lawsuit was likely to fail.

But Alphonso David, Fearless Fund’s legal counsel who serves as president & CEO of The Global Black Economic Forum, called the ruling “the first court decision in the 150+ year history of the post-Civil War civil rights law that has halted private charitable support for any racial or ethnic group.”"This is not the final outcome in this case; it is a preliminary ruling without a full factual record. We are evaluating all of our options,” he said in a statement.

The Strivers Grant Fund is one of several programs run by the foundation arm of the Fearless Fund, a small firm founded to address the wide racial disparity in funding for businesses owned by women of color. Less than 1% of venture capital funding, for example, goes to businesses owned by Black and Hispanic women, according to the nonprofit advocacy group digitalundivided.

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