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NEW YORK (AP) — A federal judge in Texas has ordered a 55-year-old U.S. agency that caters to minority-owned businesses to serve people regardless of race, siding with white business owners who claimed the program discriminated against them. The agency, which helps minority-owned businesses obtain financing and government contracts, now operates in 33 states and Puerto Rico. Justice Department lawyers representing Minority Business Development Agency declined to comment on the ruling, which can be appealed to the conservative-leaning 5th U.S. John F. Robinson, president of the National Minority Business Council, said the ruling is “a blow against minority owned businesses," and does nothing to help majority-owned businesses because they already enjoy access to federal resources through the Small Business Administration. "It has the potential of damaging the whole minority business sector because there will be less service available to minority-owned businesses,” Robinson said.

Persons: Mark T, Pittman, Donald Trump, Nixon, Biden, ” Pittman, Dan Lennington, ” Lennington, John F, Robinson, ” Robinson, Arian Simone, Alphonso David, David, Stanley Goldfarb, ”, “, —, David Glasgow, Graham Lee Brewer, Haleluya Hadero Organizations: —, U.S, Northern, Northern District of, U.S . Commerce Department, Infrastructure Investment, Jobs, Black, Wisconsin Institute for Law & Liberty, Justice Department, Business, Agency, Circuit, National Minority Business Council, Small Business Administration, Economic, Pfizer, The, Appeals, American Alliance for Equal Rights, Meltzer Center for Diversity, New York University’s School of Law, Supreme, AP Locations: Texas, Northern District, Northern District of Texas, Puerto Rico, New Orleans, Tennessee, Atlanta, The New York, Florida, New

Others are calling for larger foundations to help grantees if they are sued or are offering legal assistance themselves. The Council on Foundations, which supports philanthropic foundations and provides legal resources to its members to help them consider potential legal risks, submitted an amicus brief in the case supporting the Fearless Fund's First Amendment argument. “If you’re committed to DEI or race-conscious or race-based giving, you should not back down on your priorities. We’re funding homelessness or employment or the wealth gap,” she said as examples of changes in wording funders have made. The Black Freedom Fund, which was founded in 2021 to fund Black community organizations in California, has started a legal defense fund for its grantees for precisely that reason.

Persons: aren't, Fearless, Edward Blum, Blum, —, Searle, Sarah Scaife, Kathleen Enright, you’re, ”, John Palfrey, John D, Catherine T, Claudine Gay, Christopher Rufo, Bill Ackman, Gay, MacArthur, “, Mae Hong, Carmen Rojas, Marguerite Casey, Rojas, can’t, ” Rojas, Marc Philpart, ” Philpart, Hong, they’re, ” Hong Organizations: —, American Alliance for Equal Rights, Fair, Searle Freedom Trust, Sarah Scaife Foundation, Fidelity Investments, Donors Trust, National Philanthropic Trust, Foundations, MacArthur Foundation, Harvard University, Manhattan Institute, Harvard, Rockefeller Philanthropy Advisors, Blacks, Marguerite Casey Foundation, Freedom Fund, “, Lilly Endowment Inc, AP Locations: Black, California

Judge Kevin Newsom, a Trump appointee, pushed back against the Fearless Fund's argument that the grants are protected by the First Amendment because they are charitable donations. He asked the Fearless Fund's attorneys whether the same protection would apply to a contest open only to white applicants. “I think that's a pretty simple yes or no,” Newsom said, interrupting when the attorney for the Fearless Fund, Jason Schwartz, started to reply. They’re saying, no, we want all the pie,” Ben Crump, a civil rights attorney who is also representing the Fearless Fund Fund, said a news conference following the hearing. But since the lawsuit was filed, the Fearless Fund has had trouble securing new investment, said co-founder Arian Simone.

Persons: Donald Trump, Barack Obama —, Fearless, Kevin Newsom, Edward Blum, ” Newsom, Jason Schwartz, Schwartz, ” Schwartz, ” Ben Crump, ”, Morgan Chase, Arian Simone, “, ” Simone, Newsom, ______ Olson Organizations: MIAMI, American Alliance for Equal Rights, Trump, American Alliance, Black, Bank of America, Mastercard, “ Locations: U.S, Black, Miami, America, “, New York

☆ As diversity, equity and inclusion comes under legal attack, companies quietly alter their programs
▼ + stars: | 2024-01-14 | by ( ) www.cnbc.com time to read: +8 min

But others have targeted decades-old diversity programs that anti-affirmative action advocates have long tried to dismantle. said Danner-Okotie, who received $10,000 from a separate Fearless Fund grant. The Fearless Fund, Danner-Okotie said, grasped her mission of designing clothes for American women looking to celebrate their African heritage. The outcome of the case could be a bellwether for similar diversity programs. But some have made changes to diversity programs to try to protect them from legal scrutiny.

Persons: Sophia Danner, Okotie's, Fearless, Claudine Gay, Harvard Universitys, Erin Clark, Christopher Rufo, Harvard's, Rufo, George Floyd's, Danner, Okotie, Edward Blum, Morrison Foerster, Perkins Coie, Reagan, Dan Lennington, Lennington Organizations: Harvard, Harvard University, Boston Globe, Twitter, Black, Latina, American Alliance for Equal Rights, Disney, Pfizer, Comcast, Wisconsin Institute for Law & Liberty, Wisconsin Institute, U.S . Department, Business Enterprise Locations: America, Atlanta, India, Nigeria

☆ Black entrepreneurs, business leaders say conservative legal challenges could hinder progress
▼ + stars: | 2023-10-28 | by ( Nicquel Terry Ellis Cnn | ) edition.cnn.com time to read: +8 min

Trigg-Jones said she applied for funding from grant groups, venture capital funds and investors, but most of them denied her. Late last month, a federal appeals court granted the Alliance’s motion to temporarily block the Fearless Fund from awarding grants exclusively to Black women entrepreneurs. Black business leaders told CNN the lawsuits, if successful, could stand to undo decades of progress toward leveling the playing field for Black and brown people in the workplace and small business sector. According to a 2019 report from American Express, Black women are the fastest growing demographic of entrepreneurs in the country. Black business owners are turned down for loans at a rate three times higher than White business owners, according to a 2020 analysis of small businesses by Goldman Sachs.

Persons: Cathleen Trigg, Jones, –, you’re, ” Trigg, Edward Blum, Blum, Fearless, ” Blum, “, Goldman Sachs, Arian Simone, ”, AAER “, Rashae Barnes, Barnes, ” Barnes, Kaycea Campbell, ” Campbell, Lenwood Long, —, Long, CNN’s Jaide Timm, Garcia, Isabel Rosales, Tami Luhby Organizations: CNN, Trigg, American Alliance for Equal Rights, Civil, American Express, “, Evals Equity, Pierce College Los Angeles, Federal, Consumer Finances, African American Alliance of Community Development Financial, Black Locations: New York, PitchBook, White

"There are many other law firms with similar racially discriminatory programs," Blum said in a statement. "It is to be hoped that these firms proactively open their programs to all law students before they are sued in federal court." The paid fellowships were designed in part to help support the recruitment of people of color, which major law firms have long struggled to add to their partnership ranks. Last year, people of color comprised 11.4% of all partners in major U.S. law firms, according to the National Association for Law Placement. The lawsuit alleged the fellowship program violated a Civil War-era law enacted to protect formerly enslaved Black people that bars racial bias in contracting.

Persons: Edward Blum, Morrison, Foerster, firm's, Edward Blum's, Perkins Coie, Blum, Blum's, Fearless Fund's, Nate Raymond, Alexia Garamfalvi, Bill Berkrot Organizations: Fair, Harvard University, Wednesday, Edward Blum's American Alliance for Equal Rights, National Association for Law, U.S, Supreme, Harvard, University of North, Thomson Locations: Boston, Dallas, Seattle, University of North Carolina

NEW YORK (AP) — A grant program for businesses run by Black women was temporarily blocked by a federal appeals court in a case epitomizing the escalating battle over corporate diversity policies. Circuit Court of Appeals temporarily prevents the Fearless Fund from running the Strivers Grant Contest, which awards $20,000 to businesses that are at least 51% owned by Black women, among other requirements. In a statement Sunday, the Atlanta-based Fearless Fund said it would comply with the order but remained confident of ultimately prevailing in the lawsuit. “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. The Fearless Fund has enlisted prominent civil rights lawyers, including Ben Crump, to defend against the lawsuit.

Persons: Edward Blum, “, Thomas W, program's, ” Blum, Judge Charles R, Wilson, Ben Crump, ” Organizations: Circuit, American Alliance for Equal Rights, Civil, U.S, District Locations: Atlanta, Black, U.S .

Circuit Court of Appeals on a 2-1 vote granted a request by Edward Blum's American Alliance for Equal Rights to temporarily block Fearless Fund from considering applications for grants only from businesses led by Black women. Blum's group asked the court to do so while it appealed a judge's Tuesday ruling denying it a preliminary injunction blocking Fearless Fund from moving forward with its "racially exclusive program." Fearless Fund did not immediately respond to requests for comment. According to the Fearless Fund, businesses owned by Black women in 2022 received less than 1% of the $288 billion that venture capital firms deployed. It also provides grants, and Blum's lawsuit took aim at its Fearless Strivers Grant Contest, which awards Black women who own small businesses $20,000 in grants and other resources to grow their businesses.

Persons: Ben Crump, Arian Simone, Ayana Parsons, Mylan Denerstein, Alphonso David, Eduardo Munoz, Edward Blum's, Blum's, Grant, Robert Luck, Andrew Brasher, Thomas, Donald Trump, Blum, JPMorgan Chase, Strivers, Nate Raymond, Alexia Garamfalvi, Andrea Ricci Organizations: Fund, REUTERS, Supreme, Circuit, Edward Blum's American Alliance for Equal Rights, U.S, District, American Alliance for Equal Rights, Harvard University, University of North, JPMorgan, Bank of America, MasterCard, Thomson Locations: New York, U.S, Atlanta, Texas, University of North Carolina, Black, Boston

U.S. District Judge Thomas Thrash during a hearing denied a request by Edward Blum's American Alliance for Equal Rights for a preliminary injunction blocking Fearless Fund from considering applications for grants only from businesses led by Black women. Blum's group had asked the judge to temporarily block the Fearless Fund's "racially exclusive program" while the court considered the merits of the case. Fearless Fund founders Arian Simone and Ayana Parsons in a joint statement said they were pleased that Thrash rejected Blum's attempt to shut down their grant program. According to the Fearless Fund, businesses owned by Black women in 2022 received less than 1% of the $288 billion that venture capital firms deployed. It also provides grants, and Blum's lawsuit took aim at its Fearless Strivers Grant Contest, which awards Black women who own small businesses $20,000 in grants and other resources to grow their businesses.

Persons: Edward Blum, Thomas, Edward Blum's, Blum, Arian Simone, Ayana Parsons, Simone, Parsons, JPMorgan Chase, Strivers, Nate Raymond, Will Dunham, Alexia Garamfalvi Organizations: Fair, Harvard University, Supreme, U.S, District, Edward Blum's American Alliance for Equal Rights, Circuit, Appeals, University of North, JPMorgan, Bank of America, MasterCard, U.S ., Thomson Locations: Atlanta, Texas, University of North Carolina, Black, U.S . Civil, Boston

Those lawsuits accuse all three of violating Section 1981 of the 1866 Civil Rights Act, a law enacted after the Civil War that guarantees all people the same right to make and enforce contracts "as is enjoyed by white citizens." "All of our nation's civil rights laws - including the 1866 Civil Rights Act - enshrine the command that someone's race and ethnicity must never be used to help or harm them in public and private employment and contracting," Blum, who is white, told Reuters in an email. FREE SPEECH ARGUMENTFearless Fund has brought in prominent lawyers to defend it, including civil rights attorneys Ben Crump and Alphonso David, who during a news conference called Blum's use of the Civil War-era law "cynical." They argue that the rules for the grants are merely criteria for being eligible for a "discretionary gift" and do not create a "contract" subject to the civil rights law. Blum's group countered that Fearless Fund's argument would ironically undermine the very causes it favors by essentially invalidating Section 1981 and deeming racial discrimination protected by the First Amendment.

Persons: Edward Blum, Morrison, Foerster, Edward Blum's, Thomas, Fearless Fund's, Bill Clinton, Blum, Sarah Hinger, Hinger, Keshia Knight Pulliam, Arian Simone, Ayana Parsons, Blum's, Strivers, Ben Crump, Alphonso David, Nate Raymond, Alexia Garamfalvi, Will Dunham Organizations: Fair, Harvard University, Supreme, Edward Blum's American Alliance for Equal Rights, University of North, U.S, District, Democratic, Reuters, American Civil, Racial, Thomson Locations: Boston , Massachusetts, U.S, University of North Carolina, Atlanta, Black, Blum's Texas, Colorado, Boston

But the Fearless Fund is a tiny player in the approximately $200 billion global venture capital market. Less than 1% of venture capital funding goes to businesses owned by Black and Hispanic women, according to the nonprofit advocacy group Digitalundivided. The lawsuit against the Fearless Fund was filed by Edward Blum, the conservative activist who filed the affirmative action cases before the Supreme Court. Fearless Fund has invested more than $2 million in Thirteen Lune, founded by Nyako Griego. The combined share of venture capital funding received by Black and Latina founders briefly surpassed 1% in 2021 before dipping back below that threshold in 2022, according to Digitalundivided.

Persons: ”, Arian Simone, it's, Simone, ” Simone, Fearless, Edward Blum, Blum, ” Blum, Ben Crump, Marc Rosen, Thirteen, Sephora, Kohl's, Rosen, They’re, ” Rosen, Nyako Griego, George Floyd, Morgan Chase, Associated Press Retail Writers Anne D'Innocenzio, Haleluya Hadero Organizations: Fearless Fund, Black, Associated Press, Civil, American Alliance, Equal, AP, Fund, Court, Latina, Bank of America, Mastercard, Associated Press Retail Writers Locations: Atlanta, Texas, Florida, U.S, Lune

☆ Business owners of color seeking SBA loans now have to write an essay proving their race is a 'social disadvantage' after a judge ruled it isn't enough
▼ + stars: | 2023-09-08 | by ( Ayelet Sheffey | ) www.businessinsider.com time to read: +4 min

In July, a federal judge ruled business owners cannot say their race is a disadvantage to receive funding. It challenged the SBA's 8(a) program, which awards money to socially disadvantaged businesses each year. Now, business owners have to write an essay proving why their identity has been the basis of discrimination. The judge's decision struck down a key provision of that program, saying that business owners could no longer say their race is the reason they have faced disadvantage in America. This ruling prompted the SBA to change the process for small business owners to receive funds though the 8(a) program.

Persons: Edward Blum, Joe Biden's, Isabella Guzman, Harris Organizations: Service, SBA, Biden, Harris Administration Locations: Wall, Silicon, Tennessee, America

The paid fellowships were designed in part to help support the recruitment of people of color, which major law firms have struggled for years to add to their partnership ranks. The fellowship consists of a paid summer-associate position, which in law firms often lead to full-time jobs that pay in the six figures after graduation, and a $50,000 stipend. Legal challenges against corporate diversity programs have increased in the wake of the Supreme Court's affirmative action ruling. The other law firm in Blum's crosshairs is Seattle-founded Perkins Coie, a more than 1,200-lawyer global law firm. It has a similar fellowship and has said it plans to defend itself, saying its commitment to diversity is "steadfast."

Persons: Edward Blum, Perkins, Morrison, Foerster, Blum, Keith Wetmore, Blum's, Perkins Coie, Nate Raymond, Alexia Garamfalvi, Richard Chang Organizations: U.S, Supreme, Harvard University, University of North, San, American Alliance for Equal Rights, Excellence, Harvard, Thomson Locations: University of North Carolina, Washington , U.S, San Francisco, Miami, Blum's crosshairs, Seattle, Boston

The American Alliance for Equal Rights sued Perkins Coie in Dallas and Morrison & Foerster in Miami two months after the Supreme Court sided with another group founded by activist Edward Blum and rejected affirmative action policies used by many colleges to increase enrollment of racial minorities. The federal lawsuits accused both law firms of unlawfully discriminating against white candidates by limiting which law students could be considered for paid fellowships designed in part to help support the recruitment of people of color. "Excluding students from these esteemed fellowships because they are the wrong race is unfair, polarizing and illegal," Blum, who is white, said in a statement. Perkins Coie, founded in Seattle, offers "diversity fellowships" that provide stipends of $15,000 to $25,000 and paid positions as summer associates, a position that at major law firms can lead to full-time jobs with six-figure salaries. Reporting by Nate Raymond in Boston; Editing by Will Dunham, Alexia Garamfalvi and Alistair BellOur Standards: The Thomson Reuters Trust Principles.

Persons: Edward Blum, Perkins Coie, Morrison, Foerster, " Blum, Perkins, Nate Raymond, Will Dunham, Alexia Garamfalvi, Alistair Bell Organizations: U.S, Supreme, Harvard University, University of North, Activision, American Alliance for Equal Rights, Activision Blizzard, Kellogg, Gannett, Civil, American, American Alliance for Equal, Atlanta, Thomson Locations: University of North Carolina, Washington , U.S, Dallas, Miami, Seattle, United States, Asia, San Francisco, Blum's Texas, Boston

☆ There's a brewing backlash against DEI in corporate America — and a venture capital fund getting sued for racial bias is now caught in the middle
▼ + stars: | 2023-08-11 | by ( Vishal Persaud | ) www.businessinsider.com time to read: +6 min

VC firm Fearless Fund is being sued by the group behind the Supreme Court affirmative action case. The conservative group claims a grant program run by Fearless Fund is racially discriminatory. It also led some companies like Bank of America, Mastercard , PayPal and others to earmark millions of dollars to fund and address the racial funding gap. A small, Atlanta-based, Black women-led venture firm called Fearless Fund was one of them. "Their motive is clear: they want to disrupt the vital work of Fearless Fund and similar institutions and organizations whose primary mission is to provide underrepresented communities with an economic engine to build, sustain and scale their businesses," said Fearless Fund in a press release.

Persons: George Floyd, Edward Blum, Arian Simone, Ayana Parsons, George Floyd's, Eghosa Omoigui, Yasmin Cruz Ferrine, Ferrine, VCs Organizations: Fearless, Morning, Bank of America, Mastercard, PayPal, American Alliance for Equal Rights, Civil, Costco, MasterCard, Street Journal, Netflix, Disney, Warner Bros, Wall Street Journal, Pew Research Center, Microsoft, Walmart, TechCrunch Locations: Minneapolis, Atlanta, America

☆ A backlash is brewing against DEI in corporate America — and a venture-capital fund facing a racial-bias lawsuit is caught in the middle
▼ + stars: | 2023-08-11 | by ( Vishal Persaud | ) www.businessinsider.com time to read: +6 min

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