Lawsuit Pauses Minority-Owned Business Grant Program In Alexandria

ALEXANDRIA, VA — The City of Alexandria was served with a lawsuit Monday that delayed the launch of its grant program for Black, Indigenous and people of color-owned small businesses.

The lawsuit from Alexandria-based engineering, logistics, and program management firm Tridentis claims the city's BIPOC Small Business Grant Program is illegal. The lawsuit cites the Equal Protection Clause of the 14th Amendment, which prohibits discrimination based on race. According to the complaint filed in Alexandria federal court, the white-owned firm cannot be eligible to the program due to race.

The city said in a statement that the grant program is paused while the lawsuit is reviewed.

"As we evaluate the lawsuit, the Program will be put on hold," the city's statement read. "However, we want to reiterate the City is committed to serving all Alexandrians; we also remain focused on our responsibility to find equitable solutions that address the needs of our diverse small business community. We will provide more details about the status of the Program as we are able."

The city had planned to open applications for the grant program from Jan. 26 to Feb. 10. According to the city, the program is intended for small businesses in the City of Alexandria with at least 51 percent Black, indigenous and people of color ownership. The grant amounts between $1,000 and $7,000 would be available for business expenses such as working capital, inventory costs, rent, taxes, marketing efforts, technological advancements, business consultants, business growth and more.

Before the program was delayed, the city had planned to notify recipients of grant awards in March and distribute funds in April. Businesses that did not receive federal or city COVID-19 grants would be prioritized for the grant program.

According to federal court documents, the city's opposition response to the complaint would be due by Feb. 6.

The grant program is part of a BIPOC Small Business Program seeking to retain and grow existing businesses, recruit new businesses and assist with start-up activities. Based on feedback from Black, indigenous and people of color-owned businesses, the city will provide support in three key areas: the need for networking, resources and capital. City Council set aside $500,000 in contingent reserve funds for minority business incubation in the fiscal year 2023 budget and released the funds for use in October.