A devastating report released on July 22 has shed light on the crippling effects of Immigration and Customs Enforcement (ICE) raids on Latino-owned businesses in Los Angeles County. The study, conducted by UCLA’s Latino Policy and Politics Institute and the nonprofit Inclusive Action for the City, reveals a ‘chilling effect’ that drove customers away from businesses in areas targeted by the raids.
Source: cdnph.upi.com
The surge in ICE raids in June 2025 sent shockwaves throughout the community, with the authors of the report noting that businesses closest to the raid sites were hit the hardest. In a two-week period, the nine sites studied experienced a staggering 46,000 fewer customer visits, resulting in an estimated $3.16 million in accumulated losses. These numbers, however, only account for ‘formal’ businesses and do not include street vendors, home-based businesses, and food trucks, which are common among Latino small businesses.
Far-Reaching Consequences
The impact of the ICE raids extends far beyond commercial corridors, with the study highlighting the devastating effects on the wellbeing of business owners and their staff. In surveys conducted by the researchers, 59% of business owners reported a drop in sales of more than 50%, while 68% temporarily closed their businesses, and 51% had staff members miss work out of fear. The emotional toll of the raids was also evident, with many respondents reporting issues such as insomnia, panic attacks, and gastrointestinal disorders.
The report’s findings paint a dire picture of a community struggling to recover from the trauma inflicted by the ICE raids. A year after the surge, 95% of Latino entrepreneurs reported ongoing financial stress, with many businesses left with depleted savings, accumulated debt, and abandoned plans for growth and investment. The authors of the report note that the crisis is far from over, with many businesses still struggling to stay afloat.
The Human Cost of Immigration Enforcement
The study’s findings serve as a stark reminder of the human cost of immigration enforcement policies. The authors note that the raids not only affect the businesses themselves but also have a ripple effect on the entire community, leaving families struggling to make ends meet and undermining the very fabric of the community. As the report concludes, ‘A year later, the crisis is not over. Many of these businesses remain in debt, barely breaking even and struggling to stay open. These consequences extend far beyond commercial corridors. As immigration enforcement continues, it endangers the health, wellbeing, and safety of entire communities.’
The report’s findings are a call to action for policymakers and community leaders to rethink their approach to immigration enforcement. By prioritizing the needs of small businesses and Latino entrepreneurs, we can work towards creating a more equitable and just society for all.
The full report, ‘The Cost of Fear: the Impacts of Immigration Enforcement on Small Businesses and Latino Entrepreneurs in LA County,’ is available for download on the UCLA Latino Policy and Politics Institute website.
