The U.S. Court of Appeals for the 11th Circuit recently ruled to suspend the Fearless Fund’s grant program, which is dedicated to helping Black women run their own businesses.
According to the panel, the nonprofit’s Strivers Grant Contest, announced earlier this week, is most likely to be found in violation of Title 42, which declares equal rights under the law and prohibits consideration of race when it comes to awards.
The three judges, two of which were appointed by former President Donald Trump, also claimed that the Fearless Fund’s argument that three anonymous women were unable to prove that they were “ready and able” to apply or otherwise injured didn’t stand.
With the latest ruling, the decision to allow the grant program, which is dedicated to providing Black women business owners with $20,000 in awards and resources, to move forward has officially been reversed.
The announcement marks a victory for the conservative activists, led by Edward Blum, who filed the lawsuit. They took legal action against the Fearless Fund last October, claiming the group violated the Civil Rights Act of 1886.
My statement on today's ruling on a preliminary injunction in the Fearless Fund case. pic.twitter.com/DgBS29XRFh
— Alphonso David (@AlphonsoDavid) June 3, 2024
According to Alphonso David, the Fearless Fund’s legal counsel, the group will continue to find ways to fight the lawsuit.
“As the dissenting judge pointed out, the discrimination in access to funding that Fearless Foundation seeks to address is long-standing and irrefutable,” said David per his statement. “This is 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.”
The announcement of the verdict against the Fearless Fund comes days after the case against the venture capital fund Hello Alice was dismissed.
On May 29, a federal judge in Ohio declared that Nathan Roberts, supported by conservative group America First, didn’t have enough of a standing to go through with the lawsuit.
Roberts attempted to argue grounds of discrimination as a white man applying for a small business grant program dedicated to helping provide monetary relief to Black trucking entrepreneurs.
Grant programs such as the ones created by the Fearless Fund and Hello Alice were made to address the lack of funding for Black-owned businesses. Historically, a limited amount of venture capital funds have been used to support Black-owned businesses.
According to Crunchbase, Black business owners generally receive less than 2% of all venture capital funds, with Black women receiving less than 1%. This already low number is reportedly on the decline, as Crunchbase revealed this year that VC funds for Black-owned businesses dropped by 71%.
“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,” said Fearless Fund co-founder and CEO Arian Simone per CNN. “America is supposed to be a nation where one has the freedom to achieve, the freedom to earn, and the freedom to prosper.”
