oann

Federal Appeals Court Stops Grant Program for Black Female Entrepreneurs


Journalist Elaine ⁤Welteroth attends the Fearless Fund Third Annual Fearless Venture Capital Summit on August‍ 18, 2023 in Atlanta, Georgia. (Photo​ by Paras Griffin/Getty Images)

OAN’s Stephanie Stahl
11:37 AM – Monday, October 2, 2023

The 11th Circuit Court of Appeals in Atlanta, Georgia, ⁤has issued an ​order⁢ to temporarily pause grant applications by the Fearless Fund, an Atlanta-based venture capital firm that specifically supports Black female entrepreneurs.

Advertisement

This ruling is considered a win for the American Alliance for Equal Rights, a conservative organization founded⁣ by Edward Blum, an activist known ‌for ⁤his involvement in the challenge against affirmative action‍ in college admissions.

In early August, the Alliance filed a lawsuit against the Fearless Fund, arguing that their $20,000 small ⁤business grant program was racially-biased since it ‌exclusively supports Black women.

Additionally, ⁤Blum argued that the grant contest violates a section of the Civil Rights Act of 1866, which⁢ prohibits racial discrimination in contracts.

The majority​ on the 3-judge panel labeled⁤ the Fearless Fund’s program ⁣as “racially exclusionary” and suggested that Blum’s group was likely to⁤ succeed.

The grant contest is among several programs run by the Atlanta-based Fearless Fund, which was established to‌ bridge ​the gap in funding access for Black female entrepreneurs who receive less than 1% of venture capital funding, according to figures from Crunchbase.

In ‍a​ statement on Sunday, Fearless Fund said that they would comply with the order, but still felt confident of ultimately prevailing in⁤ the lawsuit.

“We respectfully disagree with this court’s decision, appreciate the important points raised by the dissent, and look forward to further appellate review.‍ We remain committed to defending the meaningful work of our clients,” said⁤ Alphonso David,‍ president and CEO of the Global Black Economic Forum and one of the lead lawyers for Fearless.

The Fearless Fund has enlisted prominent civil‍ rights⁤ lawyers, including Ben Crump, to defend against the lawsuit. According to the attorneys, the $20,000 in grants are not considered contracts, but rather, donations protected by the First Amendment.

However, in its majority opinion, the appellate panel disagreed, stating that the First Amendment “does not give the defendants the right to exclude persons from a contractual regime based on their race.”

The case has also become a test case, as the battle over racial considerations shifts to the workplace following the U.S. Supreme Court’s June ruling ending affirmative action in ​college admissions.

Stay informed! ⁢Receive breaking news blasts directly to your inbox for free. Subscribe here. https://www.oann.com/alerts

One America’s Jessamyn Dodd sits down ‍with California ‌Senate candidate Jim Shoemaker to discuss⁤ water conservation​ and the dangers of big government.

Researchers continue to express skepticism ⁢surrounding the use of social⁣ media, but​ some users are utilizing the platform to inform and educate the public.

with Hogan Gidley

with Colton Moore

A California ⁤federal judge has ruled people who own Tesla cars⁢ must pursue autopilot claims in individual arbitration rather than court.

Avio said its Vega C rockets would return to flight in late 2024 after implementing fixes following a failed satellite launch.

Microsoft chief executive Satya Nadella called the idea that it is easy to change‌ defaults ‌on computers and smartphones as “bogus”⁣ in ⁣the U.S. Justice Department’s antitrust fight with Google.

By Andrew Chung September 29, 2023 – 8:04‌ AM PDT Advertisement Sept 29 (Reuters) – The U.S. Supreme Court on Friday agreed to…

rnrn

⁤ What legal arguments have‍ been presented ‍by ​the Fearless Fund’s legal defense team, and how did the appellate panel respond to them

Title: ⁢Fearless Fund’s Grant ⁢Program Temporarily ⁤Paused Due ⁢to Racial Bias Controversy

Introduction:

The 11th Circuit Court of⁢ Appeals in Atlanta, ​Georgia has recently ⁣issued an order to temporarily halt grant applications from the Fearless Fund, an Atlanta-based venture capital firm ⁢that specifically supports Black ‌female entrepreneurs. This ruling comes as a result of⁤ a lawsuit filed by the American Alliance for‌ Equal Rights,⁢ a conservative organization founded by Edward Blum, challenging the racially-biased nature of the Fearless Fund’s ​grant program. The⁣ case⁤ highlights the​ ongoing​ struggle for equal access to funding for underrepresented entrepreneurs.

Background:

In early August, the ‍American Alliance for Equal Rights filed a‍ lawsuit against‌ the ‍Fearless ⁤Fund, arguing that their ⁢$20,000 small ‌business grant⁤ program was⁣ racially-biased due to its​ exclusive support‍ for Black women. Edward Blum, known for his involvement in challenges against affirmative action ⁢in ⁣college admissions,‌ contended that⁣ the grant contest‌ violated a section of the Civil Rights Act of‍ 1866, which prohibits racial discrimination in contracts.

Court’s Decision:

The majority on the 3-judge ‍panel labeled the Fearless Fund’s program as “racially exclusionary” and suggested that Blum’s group was likely to succeed in their argument. ⁢This‍ temporary halt on‌ grant‍ applications is considered a win for the American Alliance for Equal Rights and ‍raises important‌ questions about equality and ⁤fairness ‌in‌ venture ​capital funding.

Fearless Fund’s ‍Mission:

The‌ Fearless Fund was established to bridge the gap⁣ in funding access for Black female entrepreneurs, who receive less than 1% of⁣ venture capital funding, according to figures from Crunchbase. The ⁢grant contest ‌in question‌ is‍ one of several‍ programs run by the ‍Fund,‌ aimed at ‍empowering and supporting underrepresented business owners.

Response from Fearless Fund:

In a‌ statement on Sunday,⁣ Fearless Fund expressed ‍their disagreement⁢ with the court’s decision. However, they also ​stated their commitment‍ to complying with the order while remaining confident of ​ultimately prevailing in ‌the lawsuit. Alphonso David, president ‍and⁤ CEO of the Global Black Economic Forum and one of the lead ​lawyers for Fearless, emphasized their​ dedication to defending the ‍meaningful⁢ work of their clients.

Legal Defense:

Fearless Fund has enlisted prominent civil rights lawyers, including Ben Crump, to⁣ defend‌ against the lawsuit. The attorneys argue that the $20,000 ‌in ⁤grants are​ not considered contracts but⁤ rather donations protected by the First Amendment. However, ⁤the majority opinion⁢ of the appellate panel disagreed, stating that the First Amendment does not⁣ shield the grant program from scrutiny.

Conclusion:

The temporary​ pause ⁣on grant ⁤applications by‌ the ‍Fearless Fund, resulting from the lawsuit filed by the American Alliance for Equal Rights, sheds light on ​the ongoing challenges faced⁤ by underrepresented entrepreneurs in accessing ‍venture‍ capital funding. While the court’s ruling has raised concerns, it has also sparked​ important discussions about racial bias, equality, and fairness ‍within the venture capital industry. The ⁢ultimate outcome of this legal ​battle will have significant implications for⁢ the future of inclusive entrepreneurship and funding​ practices.



" Conservative News Daily does not always share or support the views and opinions expressed here; they are just those of the writer."
*As an Amazon Associate I earn from qualifying purchases

Related Articles

Sponsored Content
Back to top button
Available for Amazon Prime
Close

Adblock Detected

Please consider supporting us by disabling your ad blocker