Thousands of Black, Latino and other minority business owners are scrambling to prove that their races put them at a “social disadvantage” after a federal judge declared a key provision of a popular federal program unconstitutional, extending the U.S. Supreme Court’s recent retreat from affirmative action.
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The decision — one of the first to affect the private sector in the wake of the Supreme Court’s June decision upending race-conscious college admissions — throws into disarray an SBA program that has served minority-owned small businesses for about five decades. Legal experts said it could signal trouble for other programs meant to help underrepresented groups win federal contracts, including veterans and women.