The U.S. Small Business Administration (SBA) is responding to the concerns of small business owners in San Diego County impacted by the persistent sewage crisis originating from the Tijuana River. SBA Deputy Administrator Bill Briggs recently visited the Tijuana River Valley to directly hear from those affected.

SBA Listens to Business Owners

The visit came after requests from Imperial Beach Mayor Mitch McKay, who sought assistance from the SBA for local businesses. The ongoing pollution has created significant economic hardship for establishments in communities like Imperial Beach and Nestor, with owners reporting years of revenue losses.

Range of Economic Impacts

During a roundtable discussion with approximately a dozen business owners, a variety of impacts were detailed. A local real estate agent, also head of the Chamber of Commerce, reported difficulty selling homes in Imperial Beach due to the area’s reputation for pollution. Potential buyers are reportedly hesitant, citing concerns about the ongoing sewage issues.

A 7-Eleven franchisee stated a loss of 200-300 customers daily and expressed frustration with a lack of support from the parent company. A local hairdresser noted a complete loss of tourist clientele, leaving her barely breaking even. Even businesses with multiple locations are feeling the effects; Mike Hess Brewing experienced loan denials due to the financial struggles of its Imperial Beach location, jeopardizing a planned expansion.

Tourism and the Local Economy

Business owners shared a common narrative: while pollution problems existed in the past, they intensified around 2019-2020, coinciding with rapid development in Tijuana, Mexico. This growth overwhelmed sewage infrastructure on both sides of the border, leading to increased pollution and frequent beach closures.

Imperial Beach gained a reputation as “the most polluted beach in California,” causing a significant drop in tourism. The once-vibrant waterfront, known for its surf break and scenic views, now sees sparse traffic and easy parking due to the lack of visitors. Many businesses are struggling or have already closed.

A New Focus on Economic Impact

The SBA’s involvement marks a shift in focus, moving beyond environmental and public health concerns to address the economic consequences of the crisis. This change is partly attributed to a shift in the Imperial Beach city council towards prioritizing business interests.

While a comprehensive economic impact study is underway through the county, business owners emphasized that financial assistance is only a temporary solution. The primary need is a permanent resolution to the pollution problem.

Efforts to Address the Pollution

The current presidential administration, particularly through the Environmental Protection Agency, has engaged in discussions with Mexican officials to address the issue. However, some remain skeptical about the effectiveness of these talks, noting that previous administrations have made similar commitments with limited results. The success of these efforts will depend on concrete actions and follow-through from Mexican authorities.