SBA approves disaster relief for Los Angeles after anti-ICE riots cause $1 billion in damage
The Small Business Administration (SBA) approved California Gov. Gavin Newsom’s request for disaster relief after Los Angeles suffered an estimated $1 billion in damages from anti-ICE riots.
The declaration unlocks up to $2 million in low-interest Economic Injury Disaster Loans (EIDL) for affected small businesses to cover operating expenses like payroll, rent and utilities.
SBA Administrator Kelly Loeffler criticized Newsom for delaying the request, accusing him of downplaying the violence and prioritizing political narratives over supporting victims and business owners.
Los Angeles City Controller Kenneth Mejia reported an additional $12 million in local costs, bringing the total municipal bill to over $32 million, mostly due to police operations and emergency services.
The riots involved looting, arson and attacks on police, resulting in hundreds of arrests and potential lawsuits that could further increase the city’s financial burden.
Small business owners are now eligible to apply for federal assistance. The SBA said applications for the EIDL program are open immediately and encouraged affected businesses to apply online or contact their local SBA office for support.
Newsom initially refused to seek federal relief
According to the SBA, it urged the governor to seek federal relief earlier but claimed Newsom resisted, allegedly downplaying the violence in favor of a political narrative. Loeffler accused the governor of prioritizing “violent rioters, paid protestors and criminal illegal aliens” over small business owners left “standing in the rubble.”
“Governor Newsom allowed a mob to rampage LA – standing with violent rioters, paid protestors and criminal illegal aliens over law-abiding citizens. Despite an estimated $1 billion in damage, he refused federal relief for weeks, insisting that the riots were peaceful even as small business owners stood in the rubble,” said Loeffler. “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.”
Aside from the estimated $1 billion in damages in California, LA City Controller Kenneth Mejia estimated at least $32 million in municipal costs, including emergency services, damaged infrastructure and lost revenue from tourism.
In a post on X, formerly Twitter, on June 20, Mejia said the estimated costs of the unrest jumped by another $12 million since mid-June, with more than $29 million attributed to LA Police Department operations alone. Additional expenses include damages to public and private property, lost tourism revenue and emergency services, including over $1.1 million spent by the LA Fire Department.
The chaos spiraled into widespread violence, looting, arson and attacks on police. Rioters were seen torching both private and law enforcement vehicles, while officers deployed tear gas and flash bangs in attempts to regain control. Authorities have made hundreds of arrests on charges ranging from vandalism to attempted murder.
Mejia then warned that these figures will likely increase and that potential lawsuits could add to the financial strain.
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