A grant program aimed at supporting business owners of color in Alexandria has been delayed, due to a lawsuit filed against the city this week.

ALXnow first reported the news.

Filed in U.S. District Court by local defense contractor Tridentis LLC, the lawsuit claims the city’s BIPOC Small Business Program is “blatantly illegal” for excluding white business owners. According to the filing, Tridentis is a local business “who wants to apply for the program but is excluded because the owner is the wrong race.” It goes on to clarify that Tridentis is owned by a white Alexandria resident.

The program was created by the Alexandria City Council last October, as way to boost Black and non-white business owners who, due to structural racism and other societal barriers, are still struggling to rebound from the pandemic’s financial impacts. According to a study published in October 2022, Black business owners experienced an earning loss that was 12-14% higher than that of white business owners.

“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 discriminatroy practices,” reads the program’s webpage. “Additionally, historically BIPOC-owned businesses are feeling increased displacement pressure as rents rise and neighborhoods change.”

The $500,000 grant program was set to release its first round of applications this Thursday, offering businesses up to $7,000 to grow, sustain, or launch their small business. It was also designed to prioritize those businesses that did not benefit from COVID relief funding — but the launch of those applications has now been delayed.

Today, the City was served with a lawsuit challenging the BIPOC Small Business Grant Program. We are postponing the launch while we review the lawsuit. Despite this delay, the City remains committed to supporting our minority small business community and promoting equity for all.

— AlexandriaVAGov (@AlexandriaVAGov) January 24, 2023

The lawsuit claims the city is violating the 14th Amendment for excluding business-owners based on race, and is seeking a temporary restraining order and injunction, preventing applications from opening. According to the suit, in order to apply, a business must confirm “at least 51% BIPOC ownership,” which the plaintiff finds to be”arbitrary.”

According to its website, Tridentis is an engineering firm focused on “providing services to the Department of Defense, United States Coast Guard” and various other federal partners.

Winners were set to be announced in March with the funds distributed by April, but the program is likely to be pushed by weeks as it makes its way through the courts.

“My commitment to supporting our diverse businesses is unwavering. Very disappointed to share this news,” Councilmember Alyia Gaskins tweeted on Tuesday.

Read the lawsuit below.

TridentisLawsuit by wamu885 on Scribd