The $7,000 monthly hit: Melchor Moreno's story

Los Angeles small business owner Melchor Moreno of La Chispa de Oro in Boyle Heights lost approximately $7,000 per month during the peak enforcement period, a year ago.

Moreno's experience is not uinque; 82% of the 178 small businesses surveyed by the Los Angeles County Economic Development Corporation (LAEDC) were negatively impacted by the raids, citing reduced sales,diminished foot traffic, and workforce disruptions.

Neighborhoods like Westlake, Echo Park, Boyle Heights, and cities such as South Gate, Pico Rivera, and Bell have been hit hardest.

82% of businesses still reeling

A year after a wave of immigration enforcement raids in Los Angeles, many small businesses-especially in Latino immigrant communities-continue to suffer significant economic losses due to persistent fear among customers, according to a new report.

The LAEDC survey reveals that 82% of impacted businesses saw reduced sales and foot traffic,with neighborhoods like Boyle Heights and Pico Union among the hardest hit.

From rumors to reality: The cycle of fear

Owners describe a cycle where even rumors of ICE activity cause shoppers to stay home, prolonging economic downturns .

The combined effect of enforcement, pandemic recovery, and other economic pressures threatens the viability of independent establishments for years.

The economic landscape of Los Angeles has been significantly disrupted by a surge in immigration enforcement operations over the past year, particularly affecting small businesses in immigrant communities.

LAEDC's Shannon Sedgwick: 'The overarching uncertainty fuels an unsettled climate'

According to Shannon Sedgwick of LAEDC, the overarching uncertainty fuels an unsettled climate that suppresses economic activity, and the ripple effects could alter industries for years.

The report underscores that small, independently owned businesses are more vulnerable than chains due to their reliance on local customer bases.

While the full economic contribution of undocumented workers is estimated at 17% of county activity, the indirect consequences of enforcement-through consumer behavior-are proving even more damaging.