Atlanta, Georgia Local News
Federal Court blocks the Fearless Fund from issuing grants to Black women-owned businesses
[ad_1]
A federal court issued a ruling against the Fearless Fund, temporarily blocking the firm from financially supporting Black and Women-owned businesses Monday afternoon.
In a 2-1 ruling, the panel of the U.S. Court of Appeals for the 11th Circuit in Miami found that Edward Blum and his organization, the American Alliance for Equal Rights, was likely to prevail in his lawsuit claiming the grant program violates section 1981 of the 1866 Civil Rights Act. The law prohibits discrimination on the basis of race when enforcing contracts. The Reconstruction-era law was originally intended to protect formerly enslaved people from economic exclusion. During the post-George Floyd era, Conservatives have used this law to destroy Diversity, Equity and Inclusion (DEI) efforts in Corporate America because they believe such programs are a modern form of discrimination.
“In this fearless moment, we should all be motivated to fight after today’s decision,” Arian Simone said in a statement. “This is devastating for the Fearless Fund and Foundation, and for the women in which we have invested in. I am shattered for every girl of color who has a dream but will grow up in a nation determined not to give her a shot to live it. On their behalf, we will turn the pain into purpose and fight with all our might.”
Judge Robin Rosenbaum, an Obama appointee, wrote the dissenting opinion. She argued the plaintiffs’ claims are similar to “flopping on the field, faking an injury.” Rosenbaum characterized the claims made by AAER as “cookie-cutter declarations” that were ”threadbare and devoid of substance.”
What is Fearless’s Purpose?
The Fearless Fund is a venture capital firm founded Simone and co-partner Ayana K. Parsons. Their purpose is investing in women of color-led businesses seeking pre-seed, seed level or series A financing. Their mission is to bridge the gap in VC funding for women of color founders building scalable, growth aggressive companies. Fearless has sought to shift the levels which women of color led companies receive the investments needed to compete.
“America is supposed to be a nation where one has the freedom to achieve, the freedom to earn, and the freedom to prosper,” Simone said. “Yet, when we have attempted to level the playing field for underrepresented groups, our freedoms were stifled.
According to Parsons, more than $208 billion was deployed to entrepreneurs to start businesses in 2022. That is venture capital that seed money to start those businesses. Of that $208 billion, 0.39% of those dollars went to women of color.
Blum’s lawsuit focuses on Fearless Fund’s Fearless Strivers Grant Contest. It’s a competition that awards Black women who own small businesses $20,000 in grants. Plus, they provide digital tools to help them grow their businesses and mentorship opportunities provided by a partnership with Mastercard.
On September 26, 2023, a Federal Court Judge in Atlanta blocked a request from AAER for a preliminary injunction. It sought to prevent the Fearless Fund from considering applications for grants only from businesses led by Black women.
Conservatives’ assault on DEI continues
“Today’s decision is yet another nail in the coffin for DEI,” The Reverend Al Sharpton, President of the National Action Network, said in a statement. “Though this decision is simply outrageous, the fight is far from over. When I stood outside the courthouse in Atlanta with the Fearless Fund last year and have since led a campaign to protect DEI, I reminded everyone that there would be victories and losses in this battle, but we must keep up the fight. Because from the moment Edward Blum launched his deceitful crusade against workplace diversity, the deck has been stacked against the Fearless Fund. An organization built to help fix the enormous disparity in venture capital funding for women of color-owned businesses is seeing its mission be dismantled under the guise of fairness and equality.”
Georgia State Representative and attorney, Dar’shun Kendrick, says she’s disappointed with the ruling but not shocked.
“Certain Americans who have enjoyed privileges for years all of a sudden get amnesia when Black America demands it fulfill its promises to us,” Kendrick said. “Another friendly reminder that twice impeached and convicted felon Donald Trump did this by his Supreme Court picks. So to every Black person “sitting this one out” because you aren’t thrilled about President Joe Biden. I have one message for you: DON’T.”
The Fearless Fund to date has deployed over $26 million Black women and women of color-owned businesses. They have also deployed over 350 grants to women of color. Simone promised the Fearless Fund will continue to deploy grants. After Affirmative Action was struck down by the US Supreme Court, Simone says Fearless has lost all its partnerships except JPMorgan and Costco.
Related
[ad_2]
Itoro N. Umontuen
Source link
