Los Angeles small businesses, battered by anti-ICE riots, just got a lifeline from the Trump administration. The Small Business Administration (SBA), led by Kelly Loeffler, approved millions in disaster relief loans to help owners rebuild after Governor Gavin Newsom’s initial refusal to seek federal aid. It’s a move that cuts through the political fog with practical support.
Fox News reported that the Trump administration greenlit Economic Injury Disaster Loans (EIDL) for Los Angeles businesses hit by riots that erupted in June 2025, following federal immigration raids.
These low-interest loans, up to $2 million each, aim to cover payroll, rent, and other operating costs for owners facing an estimated $1 billion in damages.
Newsom’s delay in requesting help left many wondering if California’s leadership prioritizes politics over people. Riots kicked off on June 6, 2025, after federal immigration enforcement actions in Los Angeles sparked outrage.
Protests, initially framed as peaceful by Newsom and Mayor Karen Bass, quickly turned violent, with looters torching cars, vandalizing storefronts, and leaving the city with $20 million in public repair costs. The chaos exposed a stark divide between local leaders’ rhetoric and the reality on the ground.
Newsom’s early response was to downplay the violence, refusing to label the events as riots and pointing fingers at Trump’s immigration policies.
His social media posts, heavy on blame but light on solutions, drew sharp criticism from federal officials who accused Democratic leaders of fanning the flames. Meanwhile, small business owners stood amid the wreckage, pleading for help.
“Governor Newsom allowed a mob to rampage Los Angeles,” SBA chief Kelly Loeffler said in a July 1, 2025, press release, slamming his inaction.
Her words sting because they’re true—Newsom’s hesitation delayed relief for weeks, leaving entrepreneurs to fend for themselves. His claim that the riots were peaceful rings hollow against the backdrop of burning storefronts.
Trump didn’t wait for Newsom to act, deploying 2,000 National Guard members and hundreds of Marines to quell the violence. California sued over the move, arguing it overstepped state authority, but a federal appeals court sided with the president. Newsom’s legal gambit failed to address the immediate crisis, prioritizing courtroom battles over community recovery.
On June 12, 2025, Loeffler urged Newsom to request an EIDL declaration, emphasizing the need to support “law-abiding Americans” who lost everything.
“Local leaders are allowing Los Angeles to burn,” she said, calling out the state’s reluctance to seek federal aid. Her pointed critique underscores a broader frustration with California’s sanctuary policies.
Newsom’s team finally applied for the SBA loans, which were approved swiftly on July 1, 2025. The decision echoes the SBA’s earlier approval of $2.99 billion in loans for California wildfire victims in January 2025, showing a pattern of federal readiness to step in.
Yet Newsom’s spokesperson had the gall to claim the riots stemmed from “Trump’s authoritarian tirade,” dodging accountability.
“Finally, the federal government is doing the right thing,” Newsom’s spokesperson told Fox News Digital, framing the aid as a response to Trump’s policies. This spin conveniently ignores Newsom’s weeks of inaction and his cozying up to rioters over ravaged business owners. It’s a classic case of rewriting history to dodge blame.
Trump and Newsom traded barbs throughout the crisis, with the president blasting “incompetent Gavin Newscum” on Truth Social for failing Los Angeles.
“If it weren’t for me getting the National Guard in, it would be burning to the ground,” Trump wrote on June 12, 2025. His brash style aside, the deployment undeniably curbed the violence.
Newsom fired back, accusing Trump of lighting “the proverbial match” with immigration raids and National Guard actions. “He’s putting fuel on this fire,” Newsom said on June 9, 2025, announcing a lawsuit against the federal government. His rhetoric, while fiery, did little to address the looted stores or shattered livelihoods in Los Angeles.
The violence peaked with the “No Kings Day” protests on June 14, 2025, before subsiding amid a military parade in Washington, D.C. The timing suggests federal intervention, not state leadership, restored order. Newsom’s focus on lawsuits and blame-shifting left many Angelenos feeling abandoned.
The SBA’s loans offer a glimmer of hope for small businesses, providing working capital to cover immediate needs. With Los Angeles facing $1 billion in damages, the $2 million cap per loan could be a game-changer for owners struggling to reopen. But the scars of Newsom’s delayed response linger.
Federal officials, including DHS Assistant Secretary Tricia McLaughlin, condemned Newsom and Bass for vilifying ICE agents, linking their rhetoric to the violence. “The violent targeting of law enforcement is despicable,” McLaughlin said in June 2025. Her words highlight how local leaders’ anti-ICE stance may have emboldened rioters.
