The US$349 billion small business loan program passed last month as part of the federal coronavirus relief package discriminated against woman- and minority-owned businesses by prioritizing business with employees over those that do not, according to a lawsuit filed by two Maryland business owners.
The lawsuit was brought by Glitz and Glam Jewelry by LJ, solely owned and operated by LeTresa Williams, and by Alvin Vaughn, sole owner and operator of a financial services business.They alleged that the loan program, which ran out of money last week, allowed businesses with employees to apply for loans before those without, which they said are disproportionately owned by women and minorities.
"While many larger businesses were able to rush to their banks to avail themselves of the opportunity to participate, most of the minority-owned and woman-owned small businesses were never even given the opportunity to submit an application for the program before the money ran out," the lawsuit said.