The Committee on Small Business, joined by the Committee on Immigration, held a two-hour-and-fifty-minute hearing to examine how federal immigration enforcement is impacting New York City’s small businesses. The most consequential takeaway wasn’t a policy vote—it was the stark testimony from Harris Khan, Chief of Staff at the Department of Small Business Services (SBS), and Lorena Lucero from the Mayor’s Office of Immigrant Affairs (MOIA). They detailed how ICE raids and federal loan restrictions are driving fear, worker absenteeism, and declining foot traffic in immigrant neighborhoods like Chinatown, Little Haiti, and Port Richmond. Councilmembers Chanel Thomas Henry and Elsie Incarnación, the hearing’s co-chairs, framed the issue as both an economic and human rights crisis, emphasizing that immigrant-owned businesses make up nearly half of the city’s 180,000 small businesses.
The hearing spotlighted how federal immigration policies are disrupting the city’s economic fabric. Khan testified that since January 2025, SBS has heard from business owners across ethnic enclaves reporting lower sales and workforce instability. Some employees are skipping shifts out of fear of workplace raids. The SBA’s recent decision to exclude green card holders from federal loan programs has created a financing gap, especially for seasonal and growing businesses. In response, SBS has ramped up outreach in 20+ languages, deploying a six-person mobile team to neighborhoods like Jackson Heights and Koreatown. The department is also promoting its NYC Future Fund, which offers lower interest rates and smaller loan sizes. However, Councilmember Maloney pressed on whether these efforts are enough given the scale of the crisis. Khan acknowledged the limitations, saying SBS is “doubling down” but can’t match the reach of federal enforcement.
Another major focus was the city’s strategy around the 2026 FIFA World Cup. SBS is partnering with NYC Tourism and the Mayor’s World Cup team to direct economic opportunities to immigrant-owned businesses in neighborhoods tied to the 48 participating countries. A $26 special promotion and event calendar will be marketed citywide. The mobile outreach tour will hit five boroughs in May, including Little Senegal in Upper Manhattan. But Councilmember Incarnación questioned whether a short-term campaign can offset long-term damage. She also raised staffing concerns, noting that MOIA’s budget only supports five outreach staff despite serving a city where 49% of residents speak a language other than English at home. Khan admitted the team is “small but mighty,” but conceded that more resources are needed.
The hearing didn’t end with new legislation, but it laid bare a growing crisis. For immigrant entrepreneurs, the risks of starting a business have never been higher—between rising rents, supply chain issues, and now federal immigration threats. The city’s response, while proactive, is reactive. Residents should watch how SBS follows through on its mobile outreach and whether the FIFA campaign delivers real economic relief. Developers and small business owners in immigrant corridors should stay alert to city-led programs like the NYC Future Fund and the Small Business Month Expo on May 28. But the bigger takeaway is this: federal immigration policy is now a local economic issue. And without sustained city support, the damage could outlast any summer campaign.