Small Business Administration (SBA) Administrator Kelly Loeffler on Monday called on California Governor Gavin Newsom to request an official disaster declaration to unlock emergency relief for small businesses devastated by violent protests across Los Angeles. With looted stores, destroyed storefronts, and widespread vandalism, Loeffler warned that aid cannot be distributed until the state takes action.
In a sharply worded statement, Loeffler accused Newsom of siding with “criminal illegal aliens” over American business owners. She urged the governor to prioritize law-abiding citizens who lost everything during the riots. The SBA stands ready to deliver Economic Injury Disaster Loans (EIDLs) of up to $2 million for affected businesses, but the declaration must come from the governor’s office.
Despite federal readiness, Los Angeles County has not submitted any formal request for assistance. According to a source, there is no indication a disaster declaration is on the way, even as the damage to businesses continues to mount. The lack of urgency from state officials has raised serious concerns about priorities in the face of escalating chaos.
The SBA confirmed it had already provided California with all necessary documentation to initiate the process. If approved, the disaster declaration would grant immediate access to low-interest, long-term loans designed to help small businesses rebuild and recover.
Meanwhile, Loeffler announced the SBA is relocating its regional office out of Los Angeles due to the city’s refusal to cooperate with federal immigration enforcement. The decision reflects broader frustration with sanctuary policies that prioritize illegal immigrants over citizen safety and economic stability.
“Los Angeles is openly refusing to cooperate with ICE — siding with illegal aliens over American citizens and small businesses,” Loeffler said. “Therefore, effective immediately, SBA will begin relocating its Regional Office out of L.A. If a city won’t protect its people, we won’t stay.”
As protests continue, the absence of state-level leadership has left small business owners stranded. The choice now lies with Governor Newsom: act to protect California’s economic base or continue policies that leave communities vulnerable to destruction.
