SBA approves disaster relief for Los Angeles after anti-ICE riots cause $1 billion in damage

By lauraharris // 2025-07-07

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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.

The Small Business Administration (SBA) has approved a disaster relief request from California Gov. Gavin Newsom following weeks of violent unrest in Los Angeles that caused an estimated $1 billion in damages. In a press release on Tuesday, July 1, SBA Administrator Kelly Loeffler confirmed that Los Angeles qualifies for an Economic Injury Disaster Loan (EIDL) declaration, unlocking up to $2 million in low-interest loans for small businesses affected by the chaos. The funds are intended to support operating expenses like payroll, rent and utilities. "Today, the SBA announced approval of Governor Gavin Newsom's long-overdue request for disaster relief in downtown LA, where he allowed pro-illegal alien riots to harm our brave ICE agents and destroy small businesses in the city. Once again, President Donald J. Trump is saving California from radical leaders who fail to protect their own communities from violent rioters," the SBA wrote in its official release. (Related: LA rioters are defending VIOLENT CRIMINALS arrested by ICE.) 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. Visit Rioting.news for more stories like this. Watch DHS Secretary Kristi Noem blasting LA Mayor Karen Bass over the latter's inaction toward the riots in the City of Angels in this clip.

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Newsom initially refused to seek federal relief

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