Last fall, immigrant communities in Chicago faced significant disruptions due to federal immigration raids. Erick Camargo’s hair salon experienced a drastic drop in walk-ins, falling from about 40 customers per day to around five. During Operation Midway Blitz, Camargo took measures such as locking the salon doors to prevent entry by immigration officers. Some barbers relocated their businesses to home environments. Customers left behind community norms, arriving individually and swiftly from their cars to avoid encounters with agents.
Notably, local figures such as a boy selling chocolates for his visually impaired parents and a woman vending tamales were detained, leaving families and patrons concerned. Camargo recalls understanding the actions of those who chose not to visit, yet still feels burdened by the fear of potential harm.
Six months onward, immigrant-heavy neighborhoods continue to cope with the economic aftermath caused by customer loss and revenue decline. Illinois lawmakers are debating support mechanisms for affected businesses.
Legislative Proposals
Two legislative proposals are underway. The first seeks to create a $50 million grant program managed by the Illinois Department of Commerce and Economic Opportunity (DCEO). The second, already passed by the House, proposes a loan initiative for small businesses impacted by ‘economic shocks’ like reduced foot traffic and sales. The loans, modeled on pandemic assistance schemes, offer up to $50,000 at a 2% fixed interest over five years, with deferred payment for six months.
Both programs restrict access to small ventures: the grant program for those with up to 25 employees and the loan program for those with up to 50 employees and under $3 million in revenue. Businesses similar to Camargo’s might benefit. Despite managing with personal savings, business levels still lag behind previous benchmarks. He emphasizes the growing expense burden.
Senator Mike Simmons prefers the grant approach, noting that some businesses cannot shoulder debt. He underscores that community trauma from ICE (Immigration and Customs Enforcement) actions persists and must be addressed to help businesses re-establish themselves as community staples.
Challenges and Support
The proposals face obstacles. Gov. JB Pritzker’s February budget did not highlight new spending, and lawmakers face competing demands and a looming deficit with the session closure approaching. DCEO, while supporting small business aid, highlights the need for budgetary adjustments to accommodate such initiatives.
Chicago is not alone. A Los Angeles County study revealed that 44% of businesses experienced over 50% revenue loss after local raids. Minneapolis reported an $81 million loss due to Operation Metro Surge. Minnesota lawmakers passed a similar $100 million loan measure, though it remains stalled with a politically split House.
Community Impact
The Chicago raids, which officials claimed targeted criminal elements, concluded with 2,500 deportations and 3,800 detainments. A Chicago Tribune analysis found only 1.5% of those detained had violent crime convictions. Former President Trump labeled the city a ‘war zone,’ attributing fault to local sanctuary policies.
Marcos Carbajal, running Carnitas Uruapan in the Pilsen area, described the raids’ fallout as a ‘nightmare.’ His locations saw sales plummeting between 25% and 40% during agent operations. With federal agents occupying the area armed and accompanied by helicopters, communities shifted away. Business doors closed, and costs were curtailed to manage the downturn.
Like Carbajal, owners faced sustained revenue gaps. A nursery business owner saw dips in landscaping jobs and store visits. They implemented security measures and updated emergency contacts as part of their response. Reflecting on the experience, an owner noted that immigration raids caused lasting industry impacts.
Though specific financial fallout from the Chicago operation remains elusive, Hilda Alvarez Rodriguez from the Illinois Hispanic Chamber of Commerce highlighted that local businesses were broadly affected. A complicating factor was the operation’s end aligning with an inflation surge and winter hassles.
Andres Solarte of the Illinois Hispanic Chamber of Commerce expects further clarity with access to comprehensive business tax filings. Supporting businesses remains a priority, offering vital relief at a challenging time.
“They don’t need a handout,” Solarte said. “They just need to be able to weather the storm.”