LA Business journal: Fear of ICE Raids Drains Businesses

The Los Angeles Business Journal published a story on the economic impact being shouldered by Los Angeles’ businesses as a result of the ongoing immigration enforcement raids. Highlights below, and read the full story here: labusinessjournal.com/featured/fear-of-ice-raids-drains-businesses

“Los Angeles has always been this very fertile soil for immigrants to feel safe,” said Eddie Navarrette, president of L.A.-based Independent Hospitality Coalition, chief executive of FE Design & Consulting and member of newly formed CA4US. “This is a place where you can not only live the American dream, but you can feel comfortable doing it among other immigrant communities.”

An expert in Los Angeles tourism and business performance, Navarrette and others at CA4US are raising awareness of the economic impacts of immigration enforcement throughout the state and in the L.A. region.

In addition to the undocumented immigrants impacted by these policies, immigrants with legal status and U.S.-born citizens of color – or those with businesses located in communities frequented by ICE – are feeling the heat.

The article highlighted data released by the Los Angeles Economic Equity Accelerator and Fellowship (LEAAF)– which partners with Los Angeles County’s Economic Development Corp:

LEEAFF interviewed nearly 200 business leaders across the county, with an emphasis on areas where the ICE raids were most prevalent – including downtown, South and East L.A. The organization found that 43% of Hispanic/Latino business owners reported revenue losses of 50% or higher since June. For business owners not fluent in English, this jumps to 68%.

By comparison, 12% of Black business owners said they experienced major revenue declines along with just 5% of other ethnic groups.

Across all ethnic groups, close to two-thirds of respondents said their employees were impacted by the raids, and one-third reported that they had to temporarily close their business as a result. Additionally, 78% likened the immigration enforcement to creating a “climate of fear,” the report stated.

“The anxiety, heaviness … and sadness is a distraction that really impacts the effectiveness of how anyone can operate a business and live their life,” Navarrette said.

The reporter highlights another CA4US member, L.A. Area Chamber of Commerce:

“Businesses are reporting this widespread uncertainty and disruption, and the fear itself is a tangible economic force, even if it’s sometimes a bit hard to quantify,” said Carlos Singer, senior vice president and chief policy officer of the L.A. Area Chamber of Commerce and member of CA4US.

While the community feels ICE-related setbacks, Singer also points out that local businesses have already faced disruptions at the hands of the January wildfires and tariff policies. At the center of this intersection is construction, as immigrants make up 60% of California construction laborers – nearly half of which are undocumented, according to BACEI.

“At some point, we really need to rebuild a lot of properties across the region at a historic rate,” Singer said. “…Between the fires, the cutting off of federal funds, the tariffs – which operate as taxes to businesses and individuals – and these immigration enforcement actions, (construction projects) are either grinding to a halt or becoming really expensive through staffing (and supplies) shortages.”