Small Businesses Face Challenges in Texas Due to Tariffs and Water Restrictions

News Summary

Small businesses in Texas, particularly in Corpus Christi, are grappling with significant challenges, including rising expenses from tariffs and strict water restrictions. Entrepreneurs are struggling to maintain their operations amid economic strains and are increasingly seeking support from community lenders. The U.S. Chamber of Commerce is advocating for tariff relief, while local business owners are facing extreme limitations on resources, with some experiencing dramatic drops in revenue. As the situation remains tense, the future of small enterprises in the region hangs in the balance.

Small Businesses Feel the Heat in Corpus Christi and Across Texas

Corpus Christi, Texas – It’s a tough time for local small businesses in the Lone Star State, as they navigate the rocky waters of tariffs, water restrictions, and the ongoing battle for survival. While the heart of Texas may beat with resilience, the challenges that small business owners face are becoming increasingly daunting.

Expenses on the Rise

Small businesses are feeling the financial pinch, particularly from tariffs that have been a source of frustration and panic for many entrepreneurs. Alon Bernstein, who runs B & B Diamonds in Austin, has been in the diamond business since 1996. He explained how these tariffs are complicating wholesale transactions and manufacturing, making it an uphill battle just to break even. With economic strains dragging on his export revenues, Bernstein is currently losing money on re-cutting gemstones.

Seeking Help from Community Lenders

When traditional bank loans just don’t cut it, small business owners are looking to alternative funding options. LiftFund, a community lender, is stepping up to support small and micro businesses by offering various loan products. According to Alma Valdez-Brown, the Business Development Officer at LiftFund, these loans come with more flexible terms compared to those offered by conventional banks, making them a beacon of hope for many struggling entrepreneurs.

The Chamber’s Support

At a federal level, the U.S. Chamber of Commerce is also actively pushing for relief from these damaging tariffs. Small businesses have been vocal about their need for assistance, leading to a historic rise in the number of requests being made. The Chamber has called on the actions of government leaders to provide tariff exclusions specifically for small business importers.

Water Woes in Corpus Christi

Meanwhile, Corpus Christi is grappling with Stage 3 water restrictions that are seriously impacting local businesses. Business owner Mike Garcia, who runs 360 Landscape, has faced a staggering 75% drop in his business due to the limits on water use. To stay afloat, he has been forced to reduce his staff from 10 employees down to just 4.

Hope for Financial Relief

Garcia is optimistic about securing a city grant of up to $50,000, but he also emphasizes that increased customer inquiries are necessary for his business to remain viable. As city officials warn of the possibility of Stage 4 water restrictions as early as May, the tension is rising not just for business owners but for residents as well. The current restrictions prohibit outdoor watering and vehicle washing, but they largely ignore industrial water consumption, which accounts for a significant portion of the city’s water use.

Focus on Desalination Solutions

With industries in Corpus Christi consuming between 60-80% of the city’s water, questions about sustainability are mounting. One prominent venture, Tesla’s Lithium Refinery, is expected to consume a staggering 8 million gallons of water daily. As at least 30 corporations challenge a recent water rate hike, seeking to reduce costs for more water, the challenge of managing the city’s water flow becomes even more complex.

Looking Towards the Future

City Water CEO Drew Molly believes that a potential long-term solution could be found in desalination through the Inner Harbor Desalination Plant. This facility is projected to produce 30 million gallons of water daily, with half of that being allocated to industrial use. Environmental advocates, however, have criticized the city for prioritizing corporate profits over community needs in water management, raising ethical concerns about the city’s long-term plan.

As small businesses in Texas face combined challenges from tariffs and water restrictions, their futures may hang in the balance. With talks of Stage 4 restrictions looming by 2025, the financial viability of both businesses and residences could be in jeopardy, leaving many to wonder what the coming days will hold for the economy of the Lone Star State.

Deeper Dive: News & Info About This Topic

• Fox San Antonio: Community Support for Small Business Available Through LiftFund
• Wikipedia: Small Business
• Spectrum Local News: Small Businesses in Texas Struggle Under the Weight of Tariffs
• Google Search: Texas Small Businesses
• KIII TV: South Texas Local Businesses Team Up to Move Sinton Forward
• Google Scholar: Small Business Challenges Texas
• Border Report: Gonzalez Asks Trump to Help Small Businesses Impacted by ICE Raids
• Encyclopedia Britannica: Small Business
• ABC News: Tariffs on Mexico Strike at Heart of Small Businesses in Texas
• Google News: Texas Water Restrictions