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T.The city of Alexandria has been sued over a small business grant program targeting black and non-white entrepreneurs, delaying the program’s launch.
The lawsuit alleges that the BIPOC small business program, which aims to provide relief to black and nonwhite business owners from the effects of the pandemic, was “clearly illegal” for excluding white owners. increase.
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A local defense contractor, Tridentis LLC, filed a lawsuit in U.S. District Court, claiming it “wanted to apply for the program but was excluded because the owner was of the wrong race.”
Tridentis is owned by a white Alexandria resident, the lawsuit says.
“In other words, no white people are allowed,” the lawsuit states. “This program is clearly illegal.”
The $500,000 program plans to release the first round of applications on Thursday, offering companies up to $7,000 to launch and support small businesses. Priority will be given to businesses that have not received funding from coronavirus aid or the American Recovery Program Act.
“Many businesses have struggled and are still recovering from the impact of the COVID-19 pandemic, but these hardships are owned by Black, Indigenous and People of Color (BIPOC) due to structural barriers and discriminatory practices. It’s especially felt by companies that do,” the program’s description says on its website.
Opened from January 26th to February 10th, recipients were announced in March and grants were sent out in April.
According to the website and the lawsuit, “companies without 51% of BIPOC ownership” are excluded from this particular subsidy.
The city announced the postponement of the program in a tweet on Monday.
“Despite this delay, the city remains committed to supporting underrepresented small business communities and promoting equality for all,” the city said.
Today the city received a lawsuit challenging the BIPOC Small Business Grant Program. We are postponing the launch while we consider litigation. Despite this delay, the city remains committed to supporting minority small business communities and promoting equality for all.
— AlexandriaVAGov (@AlexandriaVAGov) January 24, 2023
City Councilman Aria Gaskins shares the city’s message,
expressed
Her disappointment over the delay in the program echoed on Twitter.
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“My commitment to supporting our diverse businesses is unwavering,” Gaskins wrote. “I am very disappointed to share this news.”
The grant program said in a statement: Washington Jury The details of the lawsuit are being considered while the program is on hold.
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