In a move that is stirring controversy, Progressive Insurance and Hello Alice, a dynamic duo in the business landscape, are contending with a lawsuit from America First Legal (AFL). The conservative nonprofit organization alleges racial discrimination in a grant program exclusively targeting Black entrepreneurs. The program, known as the Driving Small Business Forward grant, awarded $25,000 each to ten Black business owners, sparking the ire of AFL for excluding non-Black entrepreneurs.

Legal Tussle Over Grant Program

The lawsuit, filed by AFL, claims that the grant program, by excluding non-Black business owners, is racially discriminatory. The face of AFL’s lawsuit is Nathan Roberts, a White business owner who contends that he was unjustly denied a grant from Progressive due to his race. AFL has a history of similar lawsuits, having previously taken action against Amazon over its diversity grant program.

Hello Alice’s Defiant Stand

Hello Alice, in response to AFL’s allegations, filed a motion on December 13 to dismiss the case. The company argued that as a private actor, it is not legally bound to ignore existing racial disparities when providing grants. They further stated that their mission is to combat the adverse impacts of racism on America’s capital infrastructure, making their stance clear.

Support from Civil Rights Organizations

Hello Alice’s defense has garnered support from a host of legal and civil rights organizations. The Southern Poverty Law Center, among others, has filed an amicus brief urging the dismissal of AFL’s lawsuit. They argue that the grant program serves to correct historical racial inequities and is, therefore, not discriminatory.

In response to the ongoing lawsuit, Hello Alice announced a new grant initiative aimed at supporting diverse ‘American Dream’ visionaries. This move underscores the company’s commitment to lawful and inclusive practices, even in the face of legal challenges.