Lubbock is the economic center of West Texas and the South Plains region, with a diversified economy spanning agriculture, manufacturing, healthcare, education, and energy. Home to Texas Tech University and a regional healthcare hub, Lubbock businesses have access to local economic development programs, regional resources, and the full range of state and federal funding programs.
City of Lubbock Programs
Lubbock Economic Development Alliance (LEDA)
LEDA is the primary economic development organization for the Lubbock area. Funded through a combination of city and private support, LEDA provides incentive packages for businesses creating jobs and making capital investments in the region. Programs may include property tax abatements, cash incentives tied to job creation, and infrastructure support for qualifying projects.
Type A and Type B Economic Development
Lubbock's economic development corporations, funded by dedicated sales tax revenue, can provide direct incentives for business attraction and retention. Type A funds focus on manufacturing and industrial projects, while Type B funds support broader community development including infrastructure and quality-of-life improvements that support business growth.
Lubbock County and Regional Resources
South Plains Association of Governments
The South Plains Association of Governments (SPAG) serves as the regional council of government for the Lubbock area and administers federal and state programs including workforce development, economic development planning, and regional coordination. SPAG can connect businesses with available programs and regional planning resources.
SBA Lubbock District Office
Lubbock is one of only six cities in Texas with its own SBA district office. This provides direct access to SBA loan programs, counseling services, and contracting assistance for West Texas businesses. The local office serves a wide geographic area and is a valuable resource for businesses exploring SBA programs.
Texas Tech University Resources
Texas Tech provides several resources for local businesses:
- SBDC: The Texas Tech SBDC network provides free business counseling across West Texas.
- Innovation Hub: Resources for technology startups and research commercialization.
- Workforce pipeline: Graduates in engineering, agriculture, business, and healthcare fields.
State Programs for Lubbock Businesses
- Texas Enterprise Fund: Deal-closing grants for major projects.
- Skills Development Fund: Workforce training grants through South Plains College and other regional institutions.
- Texas Capital Fund: Infrastructure grants for eligible communities in the region. Many communities surrounding Lubbock meet the rural eligibility criteria.
- Enterprise Zone Program: Sales tax refunds for job creation in economically distressed areas.
- Texas HUB Certification: State procurement preferences for historically underutilized businesses.
Federal Programs
- SBA Loans: 7(a), 504, and microloan programs through local lenders and the Lubbock SBA office.
- USDA Programs: Rural Business Development Grants, REAP energy grants, and B&I loan guarantees are particularly relevant for businesses in the South Plains region. See our rural business grants guide.
- SBIR/STTR: R&D grants relevant to agriculture technology, energy, and healthcare innovation.
- HUBZone: Some areas in the Lubbock region carry HUBZone designations.
Industry Strengths
Agriculture and Agribusiness
The South Plains is one of the most productive agricultural regions in Texas, with significant cotton, grain, and livestock operations. Agricultural businesses can access USDA programs, the Texas Department of Agriculture's GO TEXAN marketing program, and agricultural sales tax exemptions.
Healthcare
Lubbock serves as the regional healthcare hub for West Texas, with major hospital systems and the Texas Tech University Health Sciences Center. Healthcare businesses can access workforce training grants, SBIR/STTR funding for health-related R&D, and HRSA programs for underserved area designation benefits.
Wind Energy
West Texas is a major wind energy region. Businesses in the wind energy supply chain can access clean energy tax credits, REAP grants, and Department of Energy programs.
Find Programs That May Fit Your Business
Lubbock businesses are often eligible for local, state, and federal programs simultaneously, with USDA rural programs adding additional options for businesses in surrounding communities. Our free screening report checks your business against 150+ verified programs and shows you which ones may match. Start your free screening →