Conservative legal group America First Legal is suing Progressive Insurance for alleged racial discrimination for a grant program for small businesses.

The 2023 Driving Small Business Forward grant from Progressive offered "$25,000 grant[s] for use toward the purchase of a commercial vehicle for their business" but was only open to black small business owners, something members of the class-action complaint argue is unlawful.

MAUI FIRES: EMERGENCY OFFICIAL WHO DECLINED TO SOUND SIRENS RESIGNS AMID CRITICISM

“All Americans deserve to be free from racial discrimination, yet major corporations across the United States inject racial considerations into every aspect of their business operations, employment practices, and so much more," Gene Hamilton, America First Legal vice president and general counsel, said in a statement. "As alleged in our complaint, our client — who is a small business owner fighting to create a better life for himself and his family — was denied a contract with Progressive that would have provided him with $25,000 toward the purchase of a new truck solely because of the amount of pigment in his skin."

The class action lawsuit, filed in the U.S. District Court for the Northern District of Ohio, argues that the grant's limitations are illegal because it is unlawful to racially discriminate when making contracts.

Nathan Roberts, the owner of Cleveland-based Freedom Truck Dispatch, says he was emailed by the insurance company about a grant opportunity, but as he filled out the grant, it prompted him that it was for black-owned businesses. Roberts is white and therefore was ineligible to apply.

"Progressive’s racially-discriminatory arrangement is offensive to the American ideal, and we will fight to vindicate his rights and the rights of all similarly situated Americans,” Hamilton added.

Progressive touted the grant and the 10 recipients in a press release earlier this week, where they celebrated helping black business owners through the grant.

CLICK HERE TO READ MORE FROM THE WASHINGTON EXAMINER

"At Progressive, we celebrate all business owners, yet we understand Black business owners still face unique challenges,” Karen Bailo, commercial lines president at Progressive Insurance, said in a statement touting the grant.

The Washington Examiner reached out to Progressive Insurance for comment on the lawsuit.