A recent study by the UCLA Latino Policy & Politics Institute reveals that immigration enforcement surges in Los Angeles County have inflicted substantial financial damage on local businesses, particularly those owned by Latino entrepreneurs, resulting in millions of dollars in lost revenue and significant community-wide economic repercussions.
The report, published in partnership with Inclusive Action for the City, examined the aftermath of immigration raids conducted in June 2025, focusing on commercial activity near nine enforcement sites and surveying 75 Latino entrepreneurs across the county. Researchers documented an estimated $3.16 million in revenue losses within two weeks of enforcement activities, attributing this to a decline in customer visits. It is estimated that sustained enforcement over a month could lead to countywide losses reaching up to $114 million.
Entrepreneurs shared accounts of severe financial hardship, including laid-off employees, canceled contracts, and drastically reduced weekly earnings. A swap meet vendor noted the disappearance of Latino customers, some due to deportation and others through self-deportation, leaving only locally born clientele. This shift has significantly impacted income, with one vendor reporting a drop from $1,500 per week to $500.
The study also highlights the profound impact on the well-being of business owners, with 76% reporting negative effects on their mental and physical health. Participants described experiencing panic attacks, anxiety, depression, and stress-related illnesses. Some, like a wellness store owner, reported relapses into substance use due to feelings of helplessness, while a street vendor developed facial paralysis attributed to extreme stress during a prolonged period of reduced income.
Amada Armenta, director of the UCLA Institute and a co-author, emphasized that these businesses serve as vital local economic engines. "When enforcement drives away their customers and workers, the harm extends to the health, well-being and safety of entire communities," Armenta stated. The report underscores that the costs of immigration raids extend beyond those directly targeted, affecting the economic stability and social fabric of the broader community.
