Updated 7 p.m. Tuesday, Jan. 31 with information from the Alexandria Minority Business Association:
The City of Alexandria was set to open applications for a BIPOC (Black, Indigenous or a Person of Color) Small Business Grant Program on Jan. 26, but a lawsuit has delayed the program.
City officials sent an email to local business owners in early January announcing the program, aimed at helping small business owners who identify as BIPOC. The program was to offer grants of $1,000 to $7,000 to licensed small business owners in Alexandria generally on a first-come, first-served basis.
Applications were to be open from Jan. 26 through Feb. 10. One of the requirements for grant eligibility was that the business must have at least 51% BIPOC ownership.
The lawsuit was brought by Tridentis, LLC, an engineering firm that started in Alexandria in 2006.
In the complaint, Tridentis argued: "This program is blatantly illegal. The Equal Protection Clause prohibits Alexandria from discriminating based on race, and this express racial exclusion cannot possibly satisfy strict scrutiny. Plaintiff, a business in Alexandria who wants to apply for the program but is excluded because its owner is the wrong race, is entitled to relief."
Tridentis noted in its filing that it is a small business based in Alexandria, but its owner is white and therefore ineligible for the grant program.
Kevin Harris, the founder of the Alexandria Minority Business Association, AMBA, said in a release, “The BIPOC Small BusinessProgram was created as an initial step for Council to fix some of the inequities that took place duringCOVID-19, and address the financial and structural hardships that BIPOC businesses have faced due to systematic racism and disinvestment. BIPOC-owned businesses are integral to our local community. We have to stop viewing grants towards BIPOC businesses as 'giveaways', but rather as the true investments that they are in the City’s intellectual and financial infrastructure. These investments will only make our city stronger, and pay dividends to the entire Alexandria community.”
Alexandria officials sent a tweet late Monday announcing the delay.
Tuesday evening, city officials released the following statement: "We are currently reviewing the details of the lawsuit challenging the BIPOC Small Business Grant Program. The suit was filed in Federal Court and details can be found through the PACER resource. As we evaluate the lawsuit, the Program will be put on hold. 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."
Accoridng to the city's BIPOC Small Business Program website, "While many businesses have struggled and are still recovering in the wake of the COVID-19 pandemic, these hardships are particularly felt by Black, Indigenous and people of color (“BIPOC”) owned businesses due to structural barriers and discriminatory financial lending practices. Additionally, historically BIPOC-owned businesses are feeling increased displacement pressure as rents rise and neighborhoods change. The Alexandria BIPOC Small Business Program is a resulting initiative that aims to retain and grow existing businesses, recruit new businesses and/or assist with start-up activities."
The grant program was to be part of that initiative. While there is still information for small business owners who identify as BIPOC here, all information regarding the grant program itself has been removed from the city's website.
