How ICE Raids Are Hurting Small Businesses in Immigrant Communities

The Impact of ICE Raids on Small Businesses

Since President Donald Trump's second inauguration, small business owners in neighborhoods with large immigrant populations have faced a decline in foot traffic and sales due to fears of Immigration and Customs Enforcement (ICE) raids.

McDonald Romain, owner of Labay Market in Brooklyn, estimates that 25% of his customers have stopped coming in since the start of the year. He attributes this to the fear of ICE raids, which has been prevalent since Trump took office.

Giovanni Peri, a professor of economics at UC Davis, warns that these concerns could have long-term consequences for the survival of small businesses. "They don't have the margins that the big companies have," Peri said. "If they lose some of their revenues in a few months, they may be out of business, while big companies may draw from savings of bigger investments."

Ted Paizis, owner of Nupa, a Mediterranean restaurant in Rochester, Minnesota, experienced the direct impact of an ICE raid. Two of his employees were taken away from the restaurant, leaving him with a staffing shortage. Paizis closed one of his locations for several days and expressed his distress over losing a valuable employee.

The fear of ICE raids has also affected the morale of Paizis' remaining employees, many of whom are Hispanic and fear being targeted despite having legal working status.

The reliance of service and hospitality businesses on workers who live in the US illegally makes the situation even more challenging. Removing large segments of this population from the workforce could exacerbate staffing shortages, as 8.3 million workers in 2022 were living in the US illegally, according to Pew Research.

The impact of ICE raids and immigration policies on small businesses is significant, causing financial losses, staffing shortages, and fear among employees. This highlights the need for a more humane and compassionate approach to immigration enforcement that prioritizes the well-being of both businesses and individuals.