Feds Visit Imperial Beach to Assess Economic Toll of Tijuana River Pollution

SBA Deputy Administrator Briggs hears from small businesses impacted by years of sewage and industrial waste flowing across the border.

Apr. 1, 2026 at 12:04am

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William Briggs, the deputy administrator of the U.S. Small Business Administration, traveled to Imperial Beach, California to meet with local business owners, city officials, and community leaders about the severe economic impact of the ongoing Tijuana River pollution crisis. During a roundtable discussion and site visit, Briggs heard firsthand accounts of plummeting revenues, reputational damage, and declining property values that small businesses have endured for years due to the constant flow of sewage and industrial waste from Mexico.

Why it matters

The Tijuana River pollution crisis has devastated the economy of Imperial Beach, a small coastal community that relies heavily on tourism and beach-related businesses. With nearly four consecutive years of beach closures and an estimated 200 billion gallons of contaminated water flowing across the border, the crisis has led to significant revenue losses, difficulty securing financing, and a decline in property values - threatening the livelihoods of local entrepreneurs and the overall viability of the city.

The details

During the visit, Briggs convened a roundtable with Imperial Beach Mayor Mitch McKay, local business owners, city officials, and representatives from Neighborhood National Bank and the Small Business Development Center network. Business owners described years of sustained revenue losses, with Mike Hess of Mike Hess Brewing reporting a 28% decline at his Imperial Beach location compared to 2022 peaks. Several owners also said the reputational damage from the pollution crisis has made it difficult to secure financing for expansion projects outside the local area. Sandi Crosby, president of the Imperial Beach Chamber of Commerce, estimated that property values in the city have declined 12-15% in recent years, with potential buyers unwilling to move their families to the area due to the pollution risks.

  • On Tuesday, Briggs visited Imperial Beach.
  • The visit came approximately two months after EPA Administrator Lee Zeldin and SBA Administrator Kelly Loeffler also visited the area.

The players

William Briggs

The deputy administrator of the U.S. Small Business Administration, who led the fact-finding visit to Imperial Beach.

Mitch McKay

The mayor of Imperial Beach, who hosted Briggs and provided information about the scale of the pollution crisis.

Mike Hess

The owner of Mike Hess Brewing, who reported a 28% decline in business at his Imperial Beach location compared to 2022 peaks.

Sandi Crosby

The president of the Imperial Beach Chamber of Commerce and a local real estate broker, who estimated a 12-15% decline in property values in the city.

P.J. McCandless

The owner of Katy's Cafe, who warned that additional debt would not be a viable solution for struggling small businesses.

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What they’re saying

“The problem that we're having isn't marketing our businesses to locals. Everybody knows where we are, 7-Elevens and restaurants, et cetera. The problem is reputational damage across the country that's causing people from not just Arizona, but Chicago and New York, whoever, that are not coming because of the sewage.”

— Mike Hess, Owner, Mike Hess Brewing

“When I offer IB as an option for someone who wants affordable beach property, their answer is, 'Absolutely not, I cannot put my family at risk.'”

— Sandi Crosby, President, Imperial Beach Chamber of Commerce and local real estate broker

“Loans are not going to be an option for some of these smaller businesses because they're already choking as it is. We'll just see more casualties.”

— P.J. McCandless, Owner, Katy's Cafe

What’s next

Briggs acknowledged the scope of the problem but stopped short of announcing specific programs or timelines, stating 'I will not be the last administration official here addressing this issue. I guarantee you that.'

The takeaway

The visit by the SBA deputy administrator underscores the severe economic toll the Tijuana River pollution crisis has taken on Imperial Beach, with small businesses facing plummeting revenues, reputational damage, and declining property values. While federal officials have now heard directly from impacted stakeholders, resolving the underlying pollution issue - not just providing financial assistance - remains the primary need expressed by the community.