The Permian Basin, centered around Midland and Odessa, is one of the world's most productive oil and gas regions. While energy dominates the local economy, diversification efforts have opened opportunities for businesses across multiple sectors. Permian Basin businesses may be eligible for energy-sector programs, workforce training grants, and local economic development incentives.
This guide covers the most relevant grants, loans, tax credits, and incentive programs available to Permian Basin business owners.
Federal Programs
SBA Lending Programs
The SBA Lubbock District Office serves the Permian Basin. Businesses may access SBA 7(a) loans up to $5 million, 504 loans for commercial real estate and heavy equipment, and Microloans up to $50,000 through regional CDFI lenders.
Department of Energy SBIR/STTR
The DOE supports energy technology commercialization through SBIR and STTR grants. Permian Basin businesses developing oilfield technology, carbon capture solutions, or energy efficiency innovations may qualify for Phase I awards up to $275,000.
USDA Rural Development
Communities outside the Midland-Odessa metro may qualify for USDA rural programs including Business & Industry loan guarantees and the Rural Energy for America Program (REAP).
State Programs
TCEQ Emissions Reduction Programs
The Texas Commission on Environmental Quality administers the Texas Emissions Reduction Plan (TERP), providing grants for replacing or upgrading diesel equipment. Oilfield service companies and trucking businesses may qualify for equipment replacement grants.
Skills Development Fund
The Texas Workforce Commission provides training grants through Midland College and Odessa College. Businesses can access customized training for oilfield operations, manufacturing, CDL certification, and technical skills.
Texas Enterprise Fund
The TEF provides deal-closing grants for businesses creating jobs and capital investment. Permian Basin businesses pursuing expansion projects may qualify for negotiated TEF awards.
Local and Regional Resources
Midland Development Corporation
The Midland Development Corporation uses Chapter 380 agreements and 4A/4B sales tax revenue to provide incentives including infrastructure support, property tax abatements, and direct incentive packages for qualifying businesses.
Odessa Economic Development
The Odessa Development Corporation offers incentive packages for businesses locating or expanding in Odessa, including property tax abatements and workforce training partnerships.
Regional Resources
- UTPB SBDC: Free business consulting through the University of Texas Permian Basin.
- SCORE Permian Basin: Free mentoring from experienced business professionals.
- Permian Basin Petroleum Association: Industry resources for energy-sector companies.
Steps for Permian Basin Business Owners
- Contact the Midland or Odessa EDC: Learn about local incentive packages for your industry.
- Explore TCEQ grants: Check TERP funding for diesel equipment replacement.
- Visit UTPB SBDC: Get free help identifying federal, state, and local programs.
- Check USDA eligibility: Outlying communities may access additional rural programs.
- Consider SBIR/STTR: Energy technology businesses may qualify for federal R&D grants.
Find Programs That May Fit Your Business
Permian Basin businesses may access a combination of federal, state, and local programs. The key is matching your specific business profile to available incentives.
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