The U.S. Small Business Administration has approved California state officials’ request for federal disaster relief for businesses in downtown Los Angeles impacted by a series of recent protests stemming from federal immigration enforcement actions.
Small businesses may now apply for up to $2 million in low-interest Economic Injury Disaster Loans to pay for “working capital and normal operating expenses,” including payroll, rent and utilities, SBA announced on Wednesday, July 2.
A number of downtown establishments lost business when they were forced to close early during a week of city-imposed overnight curfews or because people stayed away from the area. Other businesses were victims of looting or vandalism.
In announcing the loan program, the SBA accused Gov. Gavin Newsom of fostering an environment where “violent rioters” were allowed to harm “brave ICE agents and destroy small businesses.”
“Although the SBA has approved California’s disaster relief request and will begin delivering immediate aid to the innocent victims, Governor Newsom must take accountability for his state-sanctioned crisis — and stop playing politics with Americans’ livelihoods,” SBA Administrator Kelly Loeffler said in a statement.
But Diana Crofts-Pelayo, a spokesperson for the governor’s office, pointed the finger back at President Donald Trump.
Critics say the Republican president’s policies on immigration and mass deportations have sown fear in communities, and that Trump’s decision to deploy members of the National Guard and U.S. Marines to Los Angeles to protect federal buildings and agents carrying out immigration enforcement actions further escalated tensions.
“Finally, the federal government is doing the right thing to pay for the damages several small businesses have suffered from the Trump-imposed chaos campaign in Los Angeles. California businesses shouldn’t have to shoulder the burden of Trump’s authoritarian tirade,” Crofts-Pelayo said in an email.
According to the SBA, the protests in downtown L.A. resulted in about $1 billion in damages.
Loeffler on Wednesday also criticized Newsom for not requesting federal relief for small businesses sooner. Instead, she said, the Democratic governor was “insisting that the riots were peaceful even as small business owners stood in the rubble.”
The Governor’s Office of Emergency Services on Wednesday provided to Southern California News Group a copy of a letter it sent to SBA Acting Director Eric Shaw on June 25 requesting the disaster loan declaration.
Businesses interested in applying for an EIDL loan may visit sba.gov/disaster for information.