A note from Mark…

Over the last several months, our work at EDC has had to move and change in some significant ways to respond to the economic conditions around us. And while this is always a part of our work and planning, it is safe to say that 2020—and the early stages of 2021—challenged us greatly and taught us a lot about our work and our economy, as it did all of you.

Investors and community partners often ask me what a day or a week at EDC looks like—some are just curious what the actual work feels like on a day-to-day basis; others are interested in knowing what we are seeing and experiencing through the businesses we work with to better understand if their needs and priorities may signal bigger or broader economic trends, challenges, or opportunities for the region.

As we kick off the third quarter of the year and begin developing new and improved programs, strategies, and focus areas to keep stride with our fast moving and re-opening economy, here’s a quick glance at EDC’s Q2 2021:

As always, we do all that we do with an eye on building a stronger, more inclusive economy, producing more skilled workers, creating more quality jobs within our small businesses, and establishing more thriving households and a better quality of life for businesses and residents in all corners of the San Diego region. We truly could not do any of it without you, and we thank you for your continued investment, leadership, and support.

With respect and gratitude,

Mark Cafferty

Mark Cafferty
Mark Cafferty

President & CEO

A note from Mark…

As I write this, it is hard for me to believe that we are over halfway through June and summer is just around the corner.

Despite the State of California “reopening” last week, I think I have accepted the fact that things will not truly be back to normal for a very long time; yet at the same time, we see signs all around us that the way of life we all knew before the pandemic is starting to resume. In the months ahead, Team EDC will begin returning to the office much more regularly. We are starting to attend more and more in-person meetings, although the outdoor variety remains the standard. We have even put a date on the calendar for our 2022 Annual Dinner—hopeful that the year ahead continues to bring us all closer to where we once were.

While numerous things have changed about our work at EDC, the goals that we set for 2030 remain unwavering. The need to develop more quality jobs within our small businesses, more skilled workers, and more thriving households across San Diego has only become more prominent. Now more than ever, these goals must be our guideposts in re-establishing San Diego’s economic resiliency, growth, and well-being.

Committed to getting this recovery right, we have recently teamed up with local tech startup GoSite to offer up to 100 small businesses with the digital tools needed to weather future economic shocks—at no cost to them.

We know the pandemic spurred the closure of nearly 40 percent of San Diego’s small businesses—which can largely be attributed to businesses’ inability to quickly pivot online, depriving them of access to customers and key markets. We also know those hardest hit by the pandemic have been communities of color who are being left further behind. The San Diego Business Hub is one step toward ensuring San Diego businesses most impacted* by COVID-19 have the tools necessary to recover, grow, and thrive.

We feel certain that if we can support 100 more small businesses in developing the online presence they need for resiliency and growth, it will support our broader effort of increasing the number of quality jobs and thriving households within the region. And everything we do in the months ahead must ensure we are continuously taking steps in this direction. Learn more about the program at SDbizhub.com, made possible by grants from The San Diego Foundation and Union Bank.

With respect and gratitude,
Mark Cafferty

Mark Cafferty
Mark Cafferty

President & CEO

*Priority applicants include women, minorities, veterans, and other economically under-resourced groups.

NEW: San Diego Business Hub takes small businesses online, boosts resilience

Public-private partnership offering subsidized digital tools for small, diverse businesses

Today, in partnership with local tech company GoSite, EDC launched the San Diego Business Hub, which in its first phase will offer up to 100 small, service-based businesses a full suite of digital tools at no cost. Made possible by grants from The San Diego Foundation and Union Bank, SDbizhub.com is accepting applications from businesses most impacted by the COVID-19 pandemic—women, minorities, veterans and other economically under-resourced groups.

The pandemic accelerated the digital transformation of companies of all sizes and industries by as much as five years in a 12-month period, with many struggling to keep up. Since the start of 2020, the region has seen nearly 40 percent of its small businesses close. Many of these closures can be attributed to businesses’ inability to quickly pivot online, depriving them of access to customers and key markets.

We also know those hardest hit by the pandemic have been communities of color who are being left further behind in San Diego’s economic recovery.

The proof is in the numbers:

  • Despite making up just 30 percent of the local population, Hispanic and Latinx communities accounted for well over half of all regional COVID-19 cases and two in five related deaths.
  • Additionally, people of color are overrepresented in local industries that were hardest hit during the pandemic (e.g. Hispanics make up 39.8 percent of Hospitality staff and 41.8 percent of Retail staff). As a result, unemployment and loss of income have been concentrated within Black and Brown communities.

The cohort of 100 service-based businesses (e.g. personal care services, transportation, food service, home repair, small contractors, etc.) will receive GoSite’s web-based tools—which payment and invoicing, bookings, review management, customer communications, template websites and more—free of charge for one year.

Thoughts from local leaders:

“Small businesses employ the majority of San Diegans, and it’s essential we invest in their growth, recovery and resiliency if we are going to get this recovery right. This partnership with GoSite allows us to do just that: Provide the digital tools small businesses need to weather future economic downturns,” said Nikia Clarke, Vice President of Economic Development, EDC.

“This partnership is a prime example of how San Diego public, private and civic sectors rally together to solve hard problems. Access to these digital tools will help our region achieve a more equitable recovery and help small businesses struggling today be more resilient as San Diego gets back on track and back to work,” said San Diego Mayor Todd Gloria.

“Small businesses face great challenges, made worse by the COVID-19 pandemic. GoSite’s mission is to help small businesses adapt and succeed, with technology in hand for them to easily communicate with customers, manage online bookings, accept online payments, generate invoices and drive reviews—all in one place,” said Alex Goode, CEO of GoSite. “GoSite is proud to partner with EDC to create the SD Biz Hub and deliver innovative technology resources to San Diego, the place we call headquarters and home.”

“To build long-term economic resilience, San Diego’s small businesses must have resources to sustain their connections to customers and markets,”  shared Mark Stuart, President & CEO of The San Diego Foundation. “This is an inspiring example of government, philanthropy and nonprofit sectors coming together to help the small businesses in our neighborhoods survive, recover and grow.”

FAQ and applications are now live, and will remain open until the cohort is full.


A note from our COO

Throughout the country, May is recognized as Small Business Month. More than ever before, we are all-in for celebrating the passion and resilience of San Diego’s small businesses, the backbone of our local economy. Over the last 14 months, the COVID-19 pandemic turned our economy upside down, impacting small businesses in ways we could never have imagined. And yet against all odds, many are surviving.

Those with less than 100 employees make up 98 percent of firms in the region, employing the majority of San Diegans—nearly twice the national average. They are the folks who design, build, and decorate our offices, the PR firms that amplify our brands and messages, the manufacturers who make parts and products—all who have spent years building their dreams.

Federal, state, and local officials have made a significant effort to help businesses stay afloat. Just last month California Governor Gavin Newsom signed legislation taking action toward a $6.2 billion tax cut for small businesses over the next six years. The state of California is on its sixth round of California Relief Grants, allocating $2.5 billion across the state. As of May 2, through two rounds of the Paycheck Protection Program (PPP), the federal government granted more than $780 billion in loans to small businesses across America.

There is work to do

While these resources are effective and important—and EDC has helped connect more than 1,400 businesses to such aid programs—there is more work to be done. According to a recent KBPS article referencing research from Reveal Reporting Networks, “Lenders [in San Diego County] gave 61 percent of loans to businesses in majority-white census tracts and just under 12 percent to businesses in majority-Latinx census tracts.” This disparity can be attributed to the lasting effects of segregation and discrimination—here’s what we mean.

Our commitment

EDC is committed to addressing the systemic inequities that exist in this region and across the country. EDC continues to work toward building a more resilient economy through programs like MetroConnect and the Export Specialty Center; eliminating barriers to opportunity through programs like Advancing San Diego and the Anchor Collaborative; and creating pathways to growth and greater customer access, especially for economically disadvantaged business owners, through San Diego Business Hub in partnership with GoSite.

EDC could not do this work without the ongoing support of our nearly 200 investors, organizations that have also faced a tumultuous year. Together we can ensure San Diego’s economic recovery reaches all who call this place home. We cannot thank you enough.

This month and beyond, shop small and procure local to support San Diego’s resilient recovery. Learn more about how we’ll get this recovery right.

To receive updates on each of EDC’s programs for small businesses, sign up to receive our emails.

Lauree Sahba
COO, San Diego Regional EDC

Lauree Sahba
Lauree Sahba

Chief Operating Officer

Employee ownership and why it might be a good fit for your business

On April 20, San Diego Regional EDC hosted the second in our Right Recovery Town Hall series underwritten by San Diego Gas & Electric. With a focus on employee ownership as a means of business resilience, EDC partnered with San Diego Workforce Partnership and invited experts and employee-owned companies to offer their perspectives.

Why employee ownership?

As San Diego recovers from the COVID-19 pandemic and subsequent economic downturn, EDC is hosting a series of events that highlight employer-driven, market-based strategies for creating a more resilient economy, deeply rooted in the region’s inclusive growth agenda.

Employee ownership is a business model that takes many forms and can support San Diego firms in getting this recovery right. The transition to employee ownership offers an effective and meaningful way for businesses to retain a dedicated workforce, take advantage of a significant tax benefit, and ensure wealth-building that will lead to more thriving households across the region.

Together with partners, we aim to raise awareness about this option for a wide range of businesses (from restaurants to major corporations, and everything in between). This is especially important as baby boomers own about half of all privately-held businesses in the United States; and as this population reaches retirement age, we will see a massive ownership changeover of locally-held businesses, whether through sale, M&A, IPO, family transition or worse, closure.

Employee ownership benefits all who are involved:

  1. Owners receive a competitive sale price and can exit the company knowing that their legacy and values will live on through their employees.
  1. Workers receive better compensation and benefits, and feel the success of the company directly contributes to their own financial success, which oftentimes results in more engaged and harder working employees.
  1. The business sees higher productivity, largely due to the new sense of responsibility held by the employees.
  1. The community sees wealth building, reinvestment, and a sense of dependability as businesses remain anchored to the area.

What we learned from a brewer, a staffing agency, and a music staple

At the virtual event on April 20, audience members heard from Mitch Miller, a Senior Consultant at The Beyster Institute who shared the Beyster story along with a data-driven case for employee ownership. A 2019 Rutgers study showed that Americans with part ownership in their company approaching retirement age had ten times more wealth than those who did not have part ownership. Additionally, a National Center for Employee Ownership 2017 study showed that companies with an Employee Stock Ownership Plan (ESOP) were associated with 92 percent higher median household net wealth.

Sandie Taylor, director of people operations at Modern Times Beer, spoke on the employee perspective—describing increased employee engagement and a ‘we’re in this together’ culture as the company strategized ways to keep the lights on during the pandemic. An ESOP since July 2017, Modern Times’ management feels like they can speak more openly with their teams. Sandie shared, “this means a kind of trust and transparency” within our staff. Ultimately, the innovation and commitment of team members helped the company remain above water during the worst of the 2020 economic recession.

Seth Stein, CEO of Eastridge Workforce Solutions, explained how his company has developed digital tools to help employees watch their investment grow, so they can better understand and conceptualize the benefits of employee ownership in real-time. He shared that Eastridge’s voluntary turnover rate is down 57 percent, while involuntary turnover is down 40 percent—a striking decline he attributes to the employee ownership model. Seth also shared that the company’s Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) was up seven percent in 2020, even amid an economic recession. “[Employee ownership] has been a game changer for our company, and I am really excited to see what happens next,” he said.

Our third employee-owned company is a household name that made history with this business model, becoming the first (reported) multi-national company to offer ownership to ALL employees, domestic and international. Taylor Guitars made waves when it transitioned to an ESOP in January 2021 after much deliberation to ensure that the move would maintain the familial culture that founders Bob Taylor and Kurt Listug had spent decades instilling. CFO Barbara Wight was honest with the audience about the legal and financial legwork that went into making this happen, largely accomplished due to the help of Chartwell Financial Advisors, who she highly recommends to large companies hoping to transition to an ESOP. She also shared that the significant tax benefits that come with employee ownership helped Taylor Guitars make the transition as lucrative as possible.

Finally, our audience heard from Project Equity and San Diego Workforce Partnership on resources available to San Diego companies. The two organizations are currently working together with Mission Driven Finance, Alliance Healthcare Foundation, and BFed to offer flexible capital for businesses transitioning to employee ownership. San Diego Workforce Partnership will be hosting a workshop on June 17 at 10 a.m. to help businesses identify specific needs and access these funds. You can register for that event here. Other resources for transitioning to employee ownership are listed below.

Resources and contacts for your business

Chartwell Financial Advisors
Greg Fresh, Managing Director, Head of Corporate Finance
Email: greg.fresh@chartwellfa.com
Phone: 612.230.3125

Project Equity
Alison Lingane, Co-founder
Email: alison@project-equity.org

Evan Edwards, Director of Strategic Partnerships and Business Engagement
Email: evan@project-equity.org

San Diego Workforce Partnership
Email: business@workforce.org
Phone: 619.28.2900 (press 4)

You can watch the full event here:

A note from Dr. Clarke

When we relaunched World Trade Center San Diego in 2015 as an affiliate of EDC, it was with the goal to align the global competitiveness agenda of the region with its economic development priorities. The City, the Port, and the Airport Authority partnered with EDC to do just that, and we released a collaborative trade and investment strategy focused on growing exports, investment and global connectivity.

More than five years later, the global economy faces some of the most significant disruptions in a generation. Much is uncertain: for firms, for supply chains, for workers, and for communities. And yet, if this year has taught us anything, it is that we are a global society that is inextricably connected. San Diego’s economic evolution has demonstrated that global competitiveness and domestic resilience reinforce each other. Trade policy is national, but economies are regional, and jobs are local.

Today, with vaccine deployment underway, schools and offices reopening, and our first nonstop flight from Japan in a year landing at San Diego International Airport last month, there is light at the end of the tunnel. As we look to recovery, resilience, and indeed to growth, no time is better than now to think strategically about how we engage with the world. That is why, alongside civic and business leaders, we were proud to launch Go Global 2025: San Diego’s Trade and Investment strategy. This strategy leverages the region’s assets to expand exports, attract investment, and connect our region to the markets that matter most for growth:

  1. Lead with the region’s most competitive industries. Most growth and job creation will come from innovation-based industries.
  1. Leverage binational assets to attract foreign investment. Capture investment along the entire value chain in priority industries.
  1. Prioritize market access for small businesses. Small businesses create most jobs but face higher barriers to internationalization.
  1. Invest in critical infrastructure that enables global commerce. Modernize, maintain, and expand service through international ports of entry.
  1. Enhance San Diego’s global identity and reputation. Deepen public-private partnerships’ on focused international activity.

The overarching goal of a global competitiveness strategy is not simply more, but also intentional trade and investment. When paired with a focus on expanding the pipeline of skilled talent for high-demand jobs, this critical work will enable the region—and its businesses, workers, and communities—to reach our growth and resiliency goals faster and get this recovery right.

There is much work to do, and as always, that work is only possible with and through all of you, our investors and partners. So, with gratitude and optimism, I’ll close with words from our friends at San Diego International Airport, “Let’s GO.”

Dr. Nikia Clarke

Nikia Clarke
Nikia Clarke

Senior Vice President; Executive Director, World Trade Center San Diego

A note from Mark…

One year ago, almost to the day, we decided to move our EDC board meeting online and announced to our team members that we would be closing the office for a few weeks. We decided to cancel all in-person meetings and events as well. Little did any of us know then how the next 12 months would unfold.

The past year has been difficult on everyone in immeasurable ways. To try to recap any of it would almost cheapen the challenges, loss, successes, struggles, triumphs, and trials that so many have gone through.

Yet through it all, we continue to draw inspiration from those who have been on the frontlines, supply lines, and everywhere else where citizens and workers have stepped in to do their jobs to ensure the safety and stability of those around them. We feel great pride in our healthcare systems and our scientific and technology-based companies for the roles they have played in advancing care, testing, treatment, vaccinations, and more. The “life-changing” mantra that has been such a central part of our work and messaging over the last five or six years has never seemed more fitting than now.

This economic recovery we find ourselves in will be long, challenging, and at times, heartbreaking. But it will also make us stronger, more resilient, and more mindful of our connectedness to each other. Our work may look different, and our priorities and goals will need to be constantly re-evaluated, but EDC’s mission, vision, and values remain concrete. Everything we do as a team and as an organization we do with and through all of you. We cannot thank you enough for your leadership, support, collaboration, and guidance throughout the past year.

On a different note, I want to take a moment to recognize the work our communications team has been doing this month to recognize March as “Women’s History Month.” If you have not seen the profiles they have posted, please check them out here.

As I look around at our hospitals, businesses, colleges/universities, cities, and anchor institutions, I see no shortage of amazing women who are leading and bringing about real change within our region. EDC is no exception. Our World Trade Center and economic development programs were recreated under the leadership of Nikia Clarke. Our marketing and communications work is led by Bree Burris. Our day-to-day economic development work with the business community is overseen by Ashley Swartout. Our EDC Foundation is run by Jen Storm. Our finance, IT and human resources work is spearheaded by Kathy Lu. Our organizational culture has been built in no small part by Catherine DeYoung. The list goes on and on.

But there are four women who I feel should long be remembered for building and changing the organization that I have the privilege to run every day:

  • Julie Meier-Wright, who established the foundation that so many of us stand and build upon;
  • Debbie Reed, who set EDC on a new and focused course;
  • Janice Brown, who got us all to think differently about what economic development really means;
  • And Lauree Sahba, who has been the thread running through all of them and connecting them with each other, with me, and with so many of you.

Every one of them, amazing. Each playing their own role in helping to shape our organization and our work. All of them inspiring the leader and person I will forever strive to be.

Sending all of you my very best wishes for the rest of the month and truly hoping to see more and more of you in the weeks and months ahead.

With appreciation and respect,

What Does it Mean for us to Build Better?

Written by Katie Janowiak, Vice President of Communications & Impact, San Diego Grantmakers and Bree Burris, Director of Marketing & Communications, San Diego Regional Economic Development Corporation

We are still buzzing with excitement about our recent joint announcement that San Diego Grantmakers and the San Diego Regional Economic Development Corporation (EDC) are joining forces on November 17 to host a first of its kind virtual summit. We’ve built this gathering, which brings together leaders from across sectors, to challenge thinking and inspire action toward a more inclusive and equitable economy. Our two organizations—together representing local companies, foundations, public sector organizations, educational institutions, individual philanthropists, and impact investors working to create opportunities for our region to recover and thrive—share inclusive growth as a goal and have collaborated frequently in the past. But now, with our region’s needs so stark and urgent, felt like a unique chance to bring together San Diego’s changemakers to calibrate our diverse efforts toward a clear goal. 

The pandemic and social upheaval of the past year have laid bare the wealth and health inequities across our society borne so heavily by low-income; Black, Indigenous, and People of Color (BIPOC); and other marginalized groups. However, the intersecting crises of a global pandemic, its economic fallout, and a nationwide racial justice reckoning have spurred movement toward a different way of thinking. In every sector and across society, people are coalescing around the need to rethink what this economic recovery can mean: creating the conditions needed to broadly and profoundly improve community and individual well-being and resiliency. 

We discovered many approaches that could guide our own rethinking: democratic economy (as defined by our Summit partners at The Democracy Collaborative), Greenlined economy and circular economy, to name a few. Though they explore the need from different perspectives, each demands systems change, sustainability, and justice for people and planet. 

For us, the concept of an equitable economy best reflects a more ambitious and systematic approach to nurturing our local economy and society. An equitable economy has a few key attributes:

  1. It prioritizes the preservation of local economies and supports their resilience in the face of future crises.
  1. It is intrinsically linked to local and/or shared ownership, support for women and BIPOC entrepreneurs, and environmental sustainability. 
  1. It builds and propagates an infrastructure that supports communities driving sustainable economic practices and just policies. 
  1. It empowers all segments of our society to reach their full potential while protecting the environment.

At its core, building an equitable economy is about rethinking fundamental institutions and activities to better empower individuals to participate in the economy and society. To do this, we have to recenter financial power structures around community prosperity and reorient practices like investing, employment, purchasing, housing, banking, and responsible land and natural resource use to focus on community wealth building and inclusive systems. To succeed, these practices should be undertaken broadly by corporate, public, private, philanthropic, and nonprofit actors across society. And, we must all be flexible and nimble, work across sectors, and let shared prosperity and well-being guide our decisions.

An equitable economy provides an important framework as we are in the throes of crisis and recovery, and must align with inclusion growth efforts already underway. And in fact, one of the most exciting things about the San Diego/Imperial County region, and a key reason we are holding this Summit at this crucial moment in time, is that many hallmark strategies of an equitable economy are already being piloted and some have already succeeded. There’s an incredible array of San Diego businesses, impact investors, government leaders, civic groups, and philanthropy/nonprofit actors embracing collaboration and innovations, which are moving us closer toward this goal. The Summit gives us an opportunity to learn from these partners, colleagues, and neighbors. 

But we aren’t there yet. Together we need an even better understanding of how the systems that hinder and even harm our communities are designed, so that we can determine a path forward for redesigning them with equity and community at the center. This is what we hope to accomplish at the Build Better Summit on November 17. Let’s jumpstart the movement to transition to an equitable economy. Let’s set out concrete steps that we can take together to move the San Diego region toward shared prosperity and resilience. Let’s listen, learn, and act to address the immediate effects of vast inequities, as well as the systems changes that must be undertaken. 

We have the opportunity now to align our efforts and build new foundations upon which our communities and economy stand. Let’s build better, together.

Learn more about how we’ll get this recovery right

Register now for Build Better: A Bold Virtual Summit to Reimagine Our Region’s Future

San Diego’s economic recovery must be inclusive.

A note from Our board chair

In 1967, my parents fled Cuba to seek freedom and a better life in the United States. Due to travel restrictions, they were forced to move to Spain, where I was born, before finally arriving in the City of Chicago in January 1968. My parents never dreamed that within a generation, their son would become a senior executive at one of the largest financial institutions in the world. Growing up in the Rogers Park neighborhood of Chicago, I certainly never thought that the community I would find myself living and investing in all these years later would be San Diego, California. Yet here I am.

As I take on the role of board chair for the next two years at San Diego Regional EDC, I am fortunate, blessed, and humbled by the opportunities that life has given me. I also recognize that my story is not the norm for Latino immigrants in this country and that my journey thus far is not particularly common for a city kid from Chicago. I feel both an obligation and responsibility to use this time at EDC wisely, effectively, and purposefully. And as the threats and realities of COVID-19 and racial injustice continue to grip our community and our economy, like many, I feel the urgency and the need to accelerate the recovery that lies in front of us.

From the years following the Great Depression to those following the Great Recession, every recovery that the American economy has experienced has increased systemic poverty and widened the inequalities in Latino and African American communities. Too often, in a rush to restore economic normalcy for some, entire segments of our communities have been left further behind and unable to find and maintain their footing on a new and changing economic foundation. Our commitment at EDC is to do everything we can—drawing on the breadth and depth of every partnership and relationship we have—to get this recovery right.

This recovery requires us to redouble our commitment to inclusive economic growth, so that we build back a San Diego that is more resilient because prosperity reaches more people. Even in the midst of great economic uncertainty, we know one thing for sure: the innovation economy will lead us out of this recession just like it has every one before it. If the business community is thoughtful, strategic, and collaborative in this moment, we can ensure a stronger, bolder, more resilient San Diego in the years ahead.

The building blocks are clear: skilled talent, quality jobs, and thriving households.

  1. The hottest job market in a generation has become the weakest. However, there are still shortages for in-demand jobs. This means we need to do better at equipping San Diegans for the jobs of today, and those of tomorrow.
  1. Nearly 30% of small businesses have closed. And we know small businesses employ the majority of San Diegans. This means we must invest in entrepreneurship and resiliency by creating opportunities for diverse founders, and better connecting small businesses to big customers.
  1. Housing prices and unemployment are both at record highs. The economy cannot recover if people cannot afford to live here. This means we must prioritize access to and affordability of the essential infrastructure that working families rely upon—like housing, childcare, and broadband.

If past economic, financial, education, and workforce decisions have exacerbated systemic poverty and created barriers to opportunity for so many, it follows that the decisions we make now can change the future for our children and grandchildren. And with nearly 200 of the region’s largest employers, hundreds of community partners, and the proud legacies of my family and culture behind me—I plan on seeing San Diego Regional EDC through a period of historic and inclusive growth. We will get this recovery right.

—Julian Parra, EDC board chair
& SVP, Region Executive, Pacific Southwest Business Banking, Bank of America

Visit our Inclusive SD page for more

See Julian’s op-ed in the San Diego Union-Tribune

A legacy of discrimination: Redlining in San Diego

Economic inequality is a pre-existing condition. And just like in the rest of the country, a history of housing discrimination and redlining policies has burdened San Diego with decades of mounting inequities that can still be seen and felt more than 80 years later.

Less than 20 miles apart, the 1938 redlining policy presented two vastly different lending practices that have shaped our socioeconomic reality decades later.

  • La Jolla: “Residents embrace nearly all types of professions and are all white. No threat of foreign infiltration. Homes are well maintained.”
  • Logan Heights: “Racial concentration of colored fraternity. Homes show only slight degree of pride of ownership and are on the average negligently maintained.”

Scroll over the map below to visualize how redlining policies set in 1938 still impact where people live and what they earn, today.


Today, San Diego is a majority-minority region, meaning no single race or ethnic group makes up more than 50% of the total population. It is a much larger, smarter, and more diverse region than it was 80 or 90 years ago, but we are still segregated. That is the legacy of deliberate investment in some parts of our county, and deliberate disinvestment in others. So, as we talk about getting this economic recovery right, we must address the ways in which communities of color and small businesses are most impacted.  It’s no coincidence the above map mirrors that of COVID-19 impacts.

Learn more about San Diego’s economic recovery