Legal groups file amicus brief supporting Hello Alice amid discrimination lawsuit [The Press Democrat]
Dec. 21—Four legal groups filed an amicus brief Wednesday to show support for Hello Alice's motion to dismiss a lawsuit alleging the small business resource platform's grant program offered in partnership with
The partnership program between Hello Alice and Progressive offered
The lawsuit against Hello Alice states that plaintiff,
"Their engagement in this case is evidence of the potential for this and similar lawsuits to undo important progress we've made as a country toward equitable access to economic opportunities," he said in the statement.
"We are thankful to have a community of thought leaders fighting with us for equitable access to capital," Hello Alice co-founder and president
The groups argue in the brief that the plaintiffs' use of Section 1981 of the Civil Rights Act of 1866, a federal law which prohibited the discrimination on the basis of race, color and ethnicity when making and enforcing contracts according to the
They argue three other points in the brief, adding that Section 1981 sought to ensure basic economic rights for Black citizens, using Section 1981 to weaponize against private groups like Hello Alice that support economic success for people of color goes against the law's intent and that applying Section 1981 in this scenario would hinder Black business owners' ability to have equal participation in the economy.
"(It) would roll back progress that has been accomplished through similar remedial, private philanthropic programs," the brief said. "Section 1981 should not now be weaponized in 2023 to challenge remedial philanthropic programs aimed at providing opportunities for Black business owners who face greater barriers in accessing funding."
Black business owners have historically faced roadblocks when it comes to funding for their businesses.
A study from Brookings found that in 2019, there were a total of just under 6 million businesses with more than one employee, but only 2.3% of these businesses were Black-owned.
A report from Intuit QuickBooks from January found that 57% of Black business owners were denied a bank loan at least once when they started their business, compared to 37% of non-Black business owners, according to reporting from Forbes.
The groups argue in the brief that the grant program operated by Hello Alice and Progressive being found unlawful would exacerbate the economic inequities Black communities and business owners already face.
The class action lawsuit was filed in August by
Roberts, who is white and holds a commercial policy from Progressive, stated he "did not realize the grant was available only for Black-owned small businesses" when he began filling out the application until he reached the part that emphasized the grants were for Black-owned businesses.
Gore, originally from
She and Rodz started their online platform Hello Alice in 2017 to give small-business owners better access and a better idea of available resources — such as funding, networks and grant opportunities.
Miller is widely considered the architect of President
Also representing the plaintiffs is
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