95% of Latino entrepreneurs still report financial stress a year after LA raids
The study, titled “The Cost of Fear: the Impacts of Immigration Enforcement on Small Businesses and Latino Entrepreneurs in LA County,” relied on focus groups, entrepreneur surveys and foot-traffic data to estimate the economic damage. The researchers said their revenue estimates covered only “formal” businesses and did not include street vendors, home-based businesses or food trucks, which are common forms of Latino entrepreneurship.
Businesses closest to the raid sites were hit hardest, according to the report. The authors said the June 2025 surge by Immigration and Customs Enforcement created a “chilling effect” that drove customers from commercial corridors that serve Latino and immigrant communities.
Among the surveyed business owners, 59% reported sales had fallen by more than half. More than two-thirds — 68% — temporarily shut their doors, and 51% said workers had missed shifts out of fear. The report described the economic damage as “immediate” and said the effects did not diminish over time.
The study also documented lasting personal tolls. Of those surveyed, more than 75% said the raids had affected their wellbeing, describing conditions that included insomnia, panic attacks and gastrointestinal disorders. Researchers said these impacts persisted well past the initial enforcement surge.
A year after the raids, 95% of Latino entrepreneurs reported ongoing financial stress. The study said many businesses were “left with depleted savings, accumulated debt and abandoned plans for growth and investment.” The report concluded: “A year later, the crisis is not over. Many of these businesses remain in debt, barely breaking even and struggling to stay open.”
The authors warned that the consequences extend beyond commercial corridors. “As immigration enforcement continues, it endangers the health, wellbeing and safety of entire communities,” the report said.
The report was produced by the UCLA Latino Policy and Politics Institute in partnership with Inclusive Action for the City, a nonprofit focused on economic development in underserved communities.