Chicago Businesses Struggle Post-Immigration Raids

In Chicago neighborhoods, businesses experienced a dramatic shift following federal immigration raids last fall. Walk-ins at Erick Camargo’s hair salon plummeted from 40 daily customers to as few as five. The operation caused widespread fear, leading Camargo to lock his doors to prevent federal agents from entering. Some barbers even moved their services to their homes to avoid the raids.

Epic Studio Barbers & Stylist in Belmont Cragin saw customers arriving alone, sprinting from cars, afraid of immigration officers. Local figures such as a young boy selling chocolates and a woman selling tamales were detained and have not been heard from since.

Six months later, many predominantly immigrant Chicago neighborhoods continue to suffer the financial consequences of these raids. This economic impact has led Illinois lawmakers to consider how best to support recovery. Two proposals have emerged: a $50 million grant managed by the Illinois Department of Commerce and Economic Opportunity (DCEO) and a loan program for small businesses triggered by an ‘economic shock.’

The loan program, modeled after COVID-19 recovery efforts, would offer loans up to $50,000 at a fixed 2% interest over five years. Both the grant and the loan programs target small businesses, with eligibility capped at 25 employees for grants and 50 employees for loans, alongside annual revenue limits.

While Camargo’s salon has survived thus far, thanks primarily to personal savings, customer numbers remain lower than before Operation Midway Blitz. The challenges persist amid rising costs and unchanged business expenses.

Senator Mike Simmons supports the grant program, seeing it as vital recognition of the continuing challenges faced by affected communities. Despite this, both legislative proposals face an unclear future, as Governor JB Pritzker’s budget proposal lacks significant new spending and lawmakers address other financial priorities.

Efforts to aid businesses reeling from immigration raids extend beyond Illinois. Los Angeles reported significant revenue losses in 44% of local businesses after similar raids, and Minneapolis small businesses reported an $81 million loss in January after federal actions there.

In Chicago, the operation intended to target criminal immigrants instead saw around 6,300 people detained, many without criminal records. President Trump’s comments portraying Chicago negatively added to the unrest. The resulting economic downturn quickly manifested, hitting businesses hard.

Marcos Carbajal, who operates Carnitas Uruapan, witnessed a steep drop in sales at his locations. The Pilsen and Gage Park venues saw sales drop by 25% to 30%, while the Little Village location faced a 40% decrease after agents arrested several individuals.

Carbajal took extensive measures to secure his business, including customer screening and alert monitoring. His company entered financial difficulties, with sales still lagging behind pre-raid figures.

The raids’ impact extended to other industries as well. A large plant distributor experienced reduced business, prompting security enhancements and operational changes. There are fears of lasting effects on the industry as some workers have chosen to leave.

Hilda Alvarez Rodriguez from the Illinois Hispanic Chamber of Commerce noted the widespread impact on Chicago businesses. The end of the raids coincided with difficult economic conditions, complicating recovery efforts.

Andres Solarte of the Illinois Hispanic Chamber of Commerce expressed anticipation that access to business tax filings later this year will provide clearer financial insights. He believes state support via a loan program could be essential for struggling Illinois businesses recovering from the raids.