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EXCLUSIVE REPORT: The Trump administration has greenlit millions in disaster relief loans aimed at small businesses severely impacted by the violent protests in Los Angeles. These protests, which erupted in June, were sparked by anti-ICE sentiments, leading to substantial destruction across the city. This news comes as California Governor Gavin Newsom faced criticism for downplaying the severity of the riots and assigning blame to federal policies.
The Small Business Administration, under the leadership of Kelly Loeffler, disclosed on Tuesday that the governor’s office had filed for an Economic Injury Disaster Loan (EIDL) declaration. The administration swiftly approved this request, allowing local enterprises to seek up to $2 million in low-interest loans. These funds are intended to cover essential operating expenses, including payroll, rent, and utilities that became unmanageable due to the chaos attributed to failed governance at the state level.
In a prepared statement, Loeffler remarked, “Governor Newsom permitted a mob to wreak havoc in Los Angeles, siding with destructive protesters rather than with law-abiding citizens. Although damage is estimated at around $1 billion, he resisted federal aid for weeks, insisting on the peaceful nature of the protests while business owners surveyed the wreckage. This approval marks a necessary step toward justice for those affected, yet Newsom must take responsibility for the crisis unleashed under his watch.”
Despite the relief measures, Loeffler stressed that accountability is essential for a return to normalcy. “While the SBA has now given the green light for California’s relief request, the governor needs to stop playing politics and start supporting the victims of this state-sanctioned turmoil,” she emphasized.
The timeline of events illustrates a prolonged struggle for those impacted by the unrest. Weeks of indecision and inflammatory social media exchanges preceded Newsom’s late appeal for federal disaster assistance, which many construed as a desperate attempt to cover his administration’s perceived failures.
Earlier in the year, the SBA had previously approved an impressive aggregate of 11,583 loans, totaling $2.99 billion, in response to California’s wildfire crises in January. This recent approval marks another significant milestone; it is among the largest allocations of disaster relief ever authorized by the SBA for incidents that are neither hurricanes nor flooding.
In direct response to the ongoing conflicts, Loeffler had urged Newsom back in June to seek EIDL support to aid overwhelmed business owners in Los Angeles. “We are providing an opportunity for Governor Newsom to realign his stance, favoring the needs of residents followed by the havoc wreaked by rioters. While city leaders allowed Los Angeles to descend into chaos, our federal partners are ready to assist American citizens in rebuilding their lives and businesses,” Loeffler remarked at the time.
Meanwhile, a spokesperson for Governor Newsom reiterated their position, insisting on Tuesday that the Trump administration shares the blame for the unrest experienced in Los Angeles last month. The spokesperson welcomed the SBA’s approval but framed it as a consequence of federal mismanagement.
The spokesperson stated, “At last, the federal government is stepping up to alleviate the damages inflicted on small businesses due to Trump’s chaos-driven campaign in Los Angeles. The businesses should not be left to cope with the fallout from these heavy-handed federal policies.”
Riots began on the evening of June 6, triggered by federal immigration raids across the city. Instant declarations of support for immigrants by state leaders, including Mayor Karen Bass and Governor Newsom, led to widespread protests, which escalated into unrest targeting federal law enforcement representatives. Rioters were documented launching projectiles and looting neighborhood stores while setting vehicles ablaze.
Officials estimated that the riots incurred close to $20 million in expenses for the city, chiefly attributed to police overtime and repairs of governmental property. In a bid to restore order, Trump deployed approximately 2,000 National Guard troops without waiting for the governor’s activation, alongside hundreds of Marines to respond to the upheaval.
This military response was met with legal challenges from the state, alleging that federal intervention intensified violence. A federal appeals court, however, ruled in support of the Trump administration in this matter.
Federal officials have consistently insisted that Democratic leadership plays a significant role in exacerbating tensions against federal law enforcement, particularly ICE. Homeland Security Assistant Secretary Tricia McLaughlin condemned the targeting of law enforcement in Los Angeles, labeling it a breathtaking act of lawlessness. In her statement, McLaughlin called on the local leadership to denounce the violence: “The attacks on our personnel are abhorrent. Mayor Bass and Governor Newsom must take a stand against these rioters and call for an immediate cessation of violence.”
Amid the ongoing debates surrounding the events of June, Newsom has persistently rejected characterizing the demonstrations as riots. Instead, he has directed blame squarely at Trump and his administration’s enforcement policies, arguing that they catalyzed the violence seen across Los Angeles.
On June 9, in an interview, Newsom stated, “Donald Trump has ignited these tensions. He has deepened the discord, playing a direct part in what unfolds each night. The deployment of the National Guard, which I deem illegal, has worsened the situation, and I plan to challenge that legally.”
The back-and-forth continued on social media between President Trump and Governor Newsom throughout the escalation, with Trump maintaining that without federal intervention, Los Angeles could have faced total devastation. “Incompetent Gavin Newscum should have been thanking me for the job we did in Los Angeles instead of making sad excuses for his lack of leadership. If it weren’t for my actions, Los Angeles would be in ruins,” Trump asserted in a post on Truth Social.
After several tumultuous days, the protests subsided following a national demonstration dubbed “No Kings Day” on June 14. This coincided with one of Trump’s military parades in Washington, D.C., acknowledging the 250th anniversary of the U.S. Army.
The conflicts did not cease as both leaders exchanged sharp criticisms in January amid overwhelming wildfires affecting the region. Trump shifted blame towards Newsom for not taking appropriate preventive measures, while Newsom accused the President of exploiting the disasters for political gains.
On the same day, Newsom highlighted California’s extensive investments in wildfire prevention, urging Trump to fulfill federal obligations, calling for a collaborative effort to safeguard communities against future catastrophes. “California has long invested billions into forest management initiatives, and it’s time for the federal government to match that commitment. We are doing our utmost to protect our communities, will the President step up to the plate?”
