The Trump administration has officially approved disaster relief loans for small businesses in Los Angeles, which were severely impacted by the anti-ICE riots that occurred in June. This decision was made after Governor Gavin Newsom, the state’s Democratic leader, initially downplayed the intensity of the violence and placed blame on the Trump administration for the disturbances. Fox News Digital exclusively disclosed this development, indicating that the request for federal aid was a response to weeks of lack of substantial solutions from Newsom’s government. The Small Business Administration (SBA), under the leadership of Kelly Loeffler, provided an Economic Injury Disaster Loan (EIDL) declaration, which allows businesses to access up to $2 million in low-interest funding to support their operating expenses during this crisis.
Loeffler criticized Newsom for his failure to take immediate action and responsibility for the damage caused by the riots. In a detailed statement, she pointed out that Newsom allowed a mob to run rampant through Los Angeles, aligning with violent rioters and illegal immigrants, and refused to seek federal assistance despite the extensive destruction, which is estimated at $1 billion. The SBA’s approval of the disaster relief for California is described as the largest sum of disaster funds ever approved for non-hurricane or flood events under the agency’s history. In addition to this recent approval, the SBA had previously allocated over $2.99 billion in relief to California businesses affected by wildfires in January, highlighting the extensive federal support for the state’s economic recovery efforts.
Newsom, in response, has accused the Trump administration of creating and exacerbating the situation through its immigration policies and the deployment of the National Guard. He has stated that the violence in Los Angeles would have been far worse if it weren’t for Trump’s intervention. This ongoing dispute has led to a series of political confrontations between the two leaders, with each blaming the other for the chaos and subsequent financial and social consequences. In the midst of these tensions, the SBA’s approval of the EIDL loans offers immediate relief to the affected businesses, but it is also a political statement aimed at holding Newsom accountable for his state’s handling of the crisis. The approval of the disaster relief loans continues to reflect the complex interplay of political rhetoric and financial recovery efforts in Los Angeles.