Disaster Relief Loans Approved for California Businesses
The Trump administration has greenlit disaster relief loans for numerous Californians as of June, specifically targeting small businesses impacted by riots in Los Angeles sparked by anti-ICE protests. This announcement came to light through exclusive information shared by Fox News.
In a press release obtained by Fox News Digital, Small Business Administration Director Kelly Loeffler revealed that Governor Gavin Newsom’s administration had filed for an Economic Injury and Disaster Loan (EIDL) declaration. These loans, as noted by the SBA, can provide small businesses with low-interest options of up to $2 million to cover operating expenses, including salaries and rent.
Critics have spoken out about the chaos in Los Angeles, pointing fingers at Governor Newsom for allowing what they describe as mobs to disrupt the city, with claims of significant damage amounting to around $1 billion. They argue that Newsom hesitated to seek federal aid for weeks, downplaying the severity of the situation while small business owners struggled.
Loeffler stated, “The SBA will approve California’s disaster relief request quickly, but the governor must be held accountable for his delay in seeking help for those affected,” suggesting a need for less politicization surrounding the crisis of American livelihoods.
Interestingly, while some Democratic figures in California have criticized Trump’s administration for the costs of riot responses, it seems that this situation has led to an odd public relations moment for the state. A few weeks of harsh social media disputes preceded the eventual request for federal disaster relief, culminating in the approval from the SBA, which outlines the largest amount ever sanctioned outside of events like hurricanes or floods.
Loeffler had previously urged Newsom in June to pursue an EIDL declaration, emphasizing that actions were needed to support those hurt by the unrest.
She added, “We’re giving Governor Newsom a chance to redirect his focus from illegal activities toward supporting law-abiding citizens affected by the riots. Federal assistance is poised to help rebuild as soon as he responds.”
A spokesperson for Newsom countered by denouncing the violence that erupted in Los Angeles last month while also commending the federal relief approval. They expressed that it’s about time the government steps in to aid small businesses not just in the aftermath of riots but from the broader chaos attributed to Trump’s policies.
Riots began on June 6, following a federal law enforcement operation in Los Angeles that sparked outrage among local leaders. Protests escalated into riots, leading to property damage and confrontations as numerous shops were looted and vehicles set ablaze.
Los Angeles officials reported expenses nearing $20 million due to the unrest, which included police overtime and repairs. Trump responded by deploying National Guard troops to help restore order, showcasing a complicated back-and-forth regarding responsibility for the violence.
Newsom’s office has publicly condemned the federal response, arguing that it only intensified the chaos. Amidst this turmoil, he has refrained from labeling the incidents as outright “riots,” distancing himself from direct responsibility for the fallout of Trump’s policies and national guard deployments.
Overall, as California continues to grapple with both natural disasters and civil unrest, the interplay between state and federal leadership remains fraught with tension and blame. Newsom, for his part, insists the state has made substantial investments in managing crises, but reflections on who is truly accountable for the fallout could linger long after the immediate issues are addressed.
