Equal Protection in Business Assistance: A Federal Court’s Ruling on the Racial Discrimination Allegations of a Texas Business Owner

A federal court ruled that a White Texas business owner, R. Greg Gomm, did not have standing to challenge a program designed to provide financial assistance to small businesses impacted by the Covid-19 pandemic. Gomm’s business, DigitalDesk Inc., had been denied funds under the Bexar County Small Business Assistance Program. Gomm claimed that the denial violated his equal protection rights under the Constitution because it appeared to be based, in part, on his race.

The program in question awarded grants based on a scoring system that provided additional points to companies owned by veterans, women, or minorities. Gomm believed this system was discriminatory and sought to challenge its fairness in court. However, Judge Jason Pulliam of the federal court ruled against Gomm, stating that he did not have standing to challenge the program as racially biased.

This decision highlights the complexities and challenges faced by business owners seeking financial assistance during the Covid-19 pandemic. While Gomm’s concerns about potential discrimination are valid, the court found that he did not have the legal standing to challenge the program on these grounds. It underscores the importance of ensuring that assistance programs are fair and equitable for all businesses, regardless of their ownership or demographic characteristics.

As such, it is crucial for policymakers and administrators to take steps towards addressing potential biases in relief programs and ensure that they do not discriminate against any particular group of businesses or individuals. This can involve conducting regular audits of relief programs to identify any disparities or inconsistencies and implementing measures to address them proactively.

Ultimately, it is important for small business owners like Gomm who believe they have been unfairly denied access to financial assistance to seek legal advice from experienced attorneys who can help them understand their rights and options under both state and federal law. By doing so, they can better advocate for themselves and their businesses while also working towards creating more inclusive and equitable relief programs for all small businesses during these challenging times.