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Fact check: How did the 2025 LA protests affect local businesses and residents?

Checked on August 20, 2025

1. Summary of the results

The 2025 LA protests had significant and multifaceted impacts on local businesses and residents across Los Angeles. Federal disaster relief became necessary, with the U.S. Small Business Administration approving emergency loans of up to $2 million for businesses in downtown Los Angeles that were damaged during the protests [1]. The SBA specifically attributed this damage to "violent rioters" [1].

Business operations were severely disrupted throughout the affected areas. Many businesses in downtown LA closed entirely or operated with reduced hours due to the unrest [2]. The deployment of National Guard troops and Marines created additional challenges, with business owners in Little Tokyo specifically stating that the military presence was "bad for business, and it's bad for this neighborhood" [3].

Residents experienced significant fear and disruption to their daily lives. Many residents became fearful of leaving their homes due to the ongoing unrest [2]. The situation was described as unprecedented, with sources noting "We've never seen it like this" [2]. A curfew was imposed, further restricting residents' movement and activities [4].

Targeted economic boycotts were organized against specific businesses, including Home Depot and Penske, with coalition groups claiming these companies had not adequately opposed immigration enforcement actions [5] [6]. The protests included walkouts, rallies, and marches, with advocates calling for 24-hour boycotts while simultaneously supporting local businesses and street vendors [7].

2. Missing context/alternative viewpoints

The original question lacks crucial context about the underlying cause of these protests - they were specifically related to federal immigration enforcement operations and deportation policies under the Trump administration [8] [7]. The protests were not general civil unrest but targeted responses to immigration raids at locations like Home Depot and MacArthur Park [7].

Political blame-shifting emerged as a significant factor, with the SBA attributing damage to Governor Newsom allowing "violent rioters," while the governor's office blamed President Trump's policies for escalating tensions [1]. This suggests different political actors benefit from different narratives about responsibility for the economic damage.

Law enforcement response varied significantly, with California's state government activating the State Operations Center and deploying additional officers while calling for peaceful protests [9]. However, the federal deployment of National Guard and Marines created additional tensions beyond local law enforcement efforts [3] [8].

The protests included "No Kings" rallies and were part of broader resistance to increased deportation efforts [4], indicating this was part of a larger political movement rather than isolated local unrest.

3. Potential misinformation/bias in the original statement

The original question appears neutral but omits the specific immigration enforcement context that triggered these protests. By framing this as general "protests" rather than immigration-related demonstrations, it potentially obscures the political nature of the events and the federal policies that precipitated them.

The question also fails to acknowledge the deliberate economic strategy involved - these weren't just protests that happened to affect businesses, but included organized boycotts specifically designed to pressure certain companies [5]. This omission could lead to misunderstanding the protesters' intentions and methods.

Political actors have clear incentives to frame these events differently: the Trump administration and SBA benefit from portraying this as lawless rioting requiring federal intervention, while California officials benefit from framing it as justified resistance to harmful federal policies [1]. The original question's neutral framing may inadvertently favor one perspective by avoiding the contentious immigration policy context.

Want to dive deeper?
What were the main causes of the 2025 LA protests?
How did the 2025 LA protests compare to previous protests in the city?
What measures did local authorities take to maintain order during the 2025 LA protests?
How did the 2025 LA protests impact local tourism and hospitality industries?
What support services were provided to residents and businesses affected by the 2025 LA protests?