I am having trouble knowing what to do in this situation

[FishAndChips]

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Having not bet the flop, I would consider raising the SB's bet on the turn-- if you think he'd bet out with any pair. You'll scare the pants off of anyone not holding at least a K with a good kicker. The turn was a rag. There is no flush draw and the straight is not too likely. Your preflop raise could make your check on the flop look like an attempted slowplay, representing something like AK, AA, KK. I'd have to gauge the players, but it's something to think about.

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People are missing the original read. Against typical loose-passive players who check/call down, these plays are wasting money. Suppose the turn bettor has a 7. He'll simply call your raise and then check/call the river.

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Your analysis is too black and white. There are many passive games where agressive play works great. You assume the players are loose as well, which from what was originally posted, is not necessarily the case. Don't confuse passive with loose. I've played many passive games where turn raises get respect. If you never consider such plays in "passive" games, you're missing out.