The Trump administration approved millions in disaster relief loans for small businesses affected by the anti-ICE riots that erupted in Los Angeles in June, after Gov. Gavin Newsom downplayed the riots and blamed the violence on the Trump administration, Fox News Digital learned exclusively on Tuesday.
Small Business Administration chief Kelly Loeffler announced in a press release shared with Fox News Digital on Tuesday that Newsom’s administration had applied for an SBA Economic Injury Disaster Loan (EIDL) declaration, which was quickly approved.
Small businesses can now apply for up to $2 million in low-interest EIDL loans “to support working capital and normal operating expenses such as payroll, rent, and utilities that could not be met due to the destruction enabled by Newsom’s failed governance,” according to the SBA.
“Governor Newsom allowed a mob to rampage through Los Angeles, siding with violent rioters, paid protestors, and criminal illegal aliens over law-abiding residents.
Despite the estimated $1 billion in damage, he refused federal assistance for weeks, insisting that the riots were peaceful even as small business owners stood in the rubble,” Loeffler stated in the press release.
“Although the SBA has approved California’s disaster relief request and will begin delivering immediate aid to the innocent victims, Governor Newsom must take accountability for his state-sanctioned crisis – and stop playing politics with Americans’ livelihoods.”
The press release stated that the request came after “weeks of no real solutions and inflammatory social media statements” until the governor “finally requested federal disaster relief to bail him out – again.”
The relief comes after the SBA approved an additional 11,583 loans totaling $2.99 billion in relief earlier this year following the California wildfire disasters in January, according to Fox News Digital. This is the largest sum of disaster dollars ever approved by the SBA for non-hurricane or flooding events.
Loeffler had previously urged Newsom to request an Economic Injury Disaster Loan (EIDL) Declaration in June, so that the agency could approve funds to assist small business owners in Los Angeles “that have been ransacked by rioters.”
“We’re giving Gavin Newsom the opportunity to stop siding with criminal illegal aliens and start siding with law-abiding Americans – many of whom have lost everything to the violent and destructive riots across Los Angeles,” said Loeffler in a statement issued on June 12.
“The migrant mob has looted stores, destroyed storefronts, and committed criminal acts of vandalism against our local businesses.
Although local leaders are allowing Los Angeles to burn, federal partners are ready to assist American citizens in rebuilding, and we will do so as soon as the Governor responds to their call for assistance.”
A spokesperson for Governor Gavin Newsom doubled down on Tuesday in a statement to Fox News Digital, blaming last month’s violence in Los Angeles on the Trump administration while also celebrating the SBA’s approval of relief for affected California businesses.
“Finally, the federal government is doing the right thing by paying for the losses suffered by several small businesses as a result of Trump’s chaos campaign in Los Angeles.
California businesses should not have to bear the brunt of Trump’s authoritarian tirade,” a Newsom spokesperson told Fox News Digital on Tuesday.
Riots erupted in Los Angeles on the evening of June 6, after federal law enforcement officials converged on the city to conduct immigration raids.
State and local officials, including Los Angeles Mayor Karen Bass and Newsom, quickly condemned the raids in public statements while expressing support for illegal immigrants in the state.
Protests against the raids quickly turned violent as rioters targeted federal law enforcement officials, launching rocks at them, and videos showed people looting local stores, setting cars on fire, and taking over streets.
According to the Los Angeles Times, officials reported in June that the city spent nearly $20 million on police overtime and repairing damage to government buildings as a result of the riots.
Trump dispatched 2,000 National Guard members to help quell the violence, bypassing the governor, who usually activates the National Guard, while the administration also sent hundreds of Marines to respond to anti-raid chaos.
California later sued the Trump administration for deploying the National Guard, which Newsom described in a press release as “needlessly escalated chaos and violence in the Los Angeles region.” A federal appeals court eventually ruled in Trump’s favor in the case.
According to Fox News Digital, federal officials blamed the violence on Democratic elected officials, who have “villainized and demonized” ICE law enforcement.
“The violent targeting of law enforcement in Los Angeles by lawless rioters is despicable, and Mayor Bass and Governor Newsom must demand that it stop,” Department of Homeland Security Assistant Secretary Tricia McLaughlin said in a statement in June, as the violence continued.
“ICE officers risk their lives to protect and defend American citizens. These sanctuary politicians’ violent rhetoric, which includes comparisons to the modern-day Nazi gestapo and glorifying rioters, is out of control. “This violence against ICE must stop.”
In social media posts and interviews, Newsom refused to refer to the violence as “riots,” instead blaming Trump and the administration for their immigration policies and “exacerbating” the situation by activating the National Guard.
“Donald Trump created the conditions you’re seeing on TV tonight. He has exacerbated the conditions. He has, you know, lit the proverbial match.
When asked if the events were “riots” or “peaceful protests,” Newsom responded, “He’s putting fuel on this fire ever since he announced he was taking over the National Guard, an illegal act, an immoral act, an unconstitutional act, and we’re going to test that theory with a lawsuit tomorrow.”
Throughout the protests and riots, President Donald Trump and Newsom exchanged barbs on social media and in public, with the president claiming that Los Angeles would have been destroyed if he hadn’t intervened.
“Incompetent Gavin Newscum should have thanked me for the work we did in Los Angeles, rather than making excuses for his poor performance. If I hadn’t gotten the National Guard into Los Angeles, it would be burning down right now!” On June 12, Trump posted to Truth Social.
The violence and protests subsided after the national “No Kings Day” protests on June 14, when Trump also held a military parade in Washington, D.C. to commemorate the 250th anniversary of the United States Army.
The two also clashed in January, when Trump chastised Newsom for his leadership during the devastating wildfires that ravaged Los Angeles.
Trump blamed Newsom for not doing more to prevent wildfires, while Newsom’s office accused Trump of “playing politics” while they worked to end the devastation.
On Monday, Newsom boasted that his state has “invested billions of dollars to fight fires” and urged Trump “to put his money where his mouth is” and help protect communities from wildfires.
“California has done more than its fair share of ‘raking’ the forests; now, the federal government must do its part to Make America Rake Again.” We have invested billions of dollars and treated millions of acres, more than doubling our state investment since I took office.
“We’re doing everything we can to protect communities from catastrophic wildfires; will President Trump?” Newsom stated in a press release issued by his office.
