The foundation of the economic development program was the establishment of the South Plains Economic Development District (SPEDD). Designated as a Redevelopment District by the Economic Development Administration (EDA), SPEDD is a non profit corporation operated and staffed by SPAG.

Through strategic planning and the development of a regional economic development plan the economic development program has grown to encompass the areas of Industrial Marketing and Recruiting, Business Retention/Expansion and Small Business Development.

South Plains Economic Development District (SPEDD)

In 1998 the city of Plainview was awarded a Public Works grant in the amount of $1.5 to assist in the renovating of the city’s water treatment facility and to extend water to Excel, a beef processing plant.

Through SPEDD and its affiliation with the Economic Development Administration (EDA), SPAG can assist eligible communities and counties through EDA's Public Works program. Currently, counties that are designated as Redevelopment Areas and therefore eligible to access EDA programs are: Bailey, Cochran, Dickens, Floyd, Garza, Hale, Hockley, Lamb, Lynn, Motley, Terry. The cities of Lubbock and Plainview also may utilize the program which awards grants of up to 50% for the purpose of improving or providing infrastructure for economic development. In addition, the district is responsible for maintaining and updating the Overall Economic Development Plan (OEDP) for the region.

Industrial Marketing and Recruiting

The High Ground of Texas is a unique regional marketing program which began in 1989. Communities from the Panhandle and South Plains once again joined together to identify and attract companies from outside the region while leveraging funds from SPAG and Southwestern Public Service Company (SPS). The coalition utilized publication advertising, direct mail, and trade shows to tell "our story." The concept is built on the premise that the majority of communities in the Panhandle and South Plains cannot afford a $45,000 national marketing effort. However, by combining financial resources and manpower, communities may buy into the regional effort for an annual fee of $500, thereby multiplying their effectiveness.

In 1999 the High Ground marketing effort produced the following results:

· Participated in publication ads and direct mail campaigns that generated 731 business contacts.

· Sponsored five trade shows that resulted in 679 business contacts.

· Sponsored training and conferences to enhance local economic development expertise.

In order to assist communities in the handling of prospects, SPAG and Southwestern Public Service (SPS) designed the Rural Economic Development Initiative (REDI) program. In 1997, seven (7) individuals participated in the program. REDI provides individuals and communities with hands-on training in the economic development process and complements the High Ground program.

South Plains Economic Development District

Rosa Acosta, Brownfield
Doug Allen, Littlefield
Jim Barron, Plains
Anne Carthel, Floydada
Elgin Conner, Levelland
Irene Favila, Plainview
Gilbert Flores, Lubbock
Jim Jeffers, Plainview
Robert Lugo, Lubbock
Giles McCrary, Post
Chevo Morales, Lubbock
Rick Osburn, Levelland
Robert Pierce, Spur
Susy Pierce, Muleshoe
Carl Reynolds, Tahoka
John M. Russell, Matador
D.A. Smith, Lubbock
Wanda Thompson, Morton
Juan Vasquez, Ralls
Bruce Woods, Brownfield

Business Retention, Expansion and Small Business Development

Realizing that private businesses are the keys to job creation, SPAG has developed several programs designed to deliver direct financial assistance to business enterprises in the region.

Caprock Business Finance Corporation

Utilizing the Small Business Administration (SBA) 504 program, Caprock provides financing to small businesses wishing to acquire or construct their own building. During FY 1999, 6 loans totaling $2,151,000 were closed. This financing created 29 new jobs and resulted in the retention of 11jobs. To date, a total of 110 projects have been financed through this program creating 1033 new jobs and retaining 869 more.

SPAG Revolving Loan Fund

The SPAG Revolving Loan Fund (RLF) funded 2 loans in 1998. The RLF provided $350,000 that leveraged an additional $715,000 in private sector loans and equity for both loans. These loans resulted in the creation of 18 jobs. In 1999, one loan was funded. The RLF provided $150,000 that leveraged an additional $355,000 in private funds. This loan resulted in the creation of 5 new jobs.  SPAG established the RLF program in 1987 with a $500,000 grant from the Economic Development Administration (EDA). Due to the excellent track record of SPAG, EDA funded an additional $500,000 grant in 1991. The EDA grants, combined with local matching dollars, give SPAG a total fund of just over $1,300,000 to loan to private businesses. Due to the closing of Reese Air Force Base, SPAG was awarded an additional $500,000 in 1997 which will serve to increase the RLF capital available to businesses in the region.

FmHA Revolving Loan Fund

Utilizing grant funds obtained from the Farmers Home Administration, SPAG established a revolving loan fund (RLF) to assist businesses in rural counties and communities in 1992. SPAG submitted a grant application to FmHA, now called Rural Development (RD). To date, five (5) loans have been funded totaling $530,800. These loans have leveraged $4,519,986 in private sector investment. Traditionally, this program has been used by FmHA to fund water and sewer projects. SPAG's utilization of this program to establish a rural RLF earned an Innovation Award from the National Association of Development Organizations (NADO).

Caprock Business Finance Corporation

Tom Anderson, Odessa
Barry Ballinger, Lubbock
Wayne Boling, Lubbock
Wayne Borchardt, Plainview
Blake Boyd, Slaton
Joe Cargill, Brownfield
Michael Carper, Lubbock
O.L. Cooper, Big Spring
Marilyn Cox, Muleshoe
Lewis Earl, Post
Grady Elder, Plainview
Mark Gatzki, Monahans
Jeff Hansard, Midland
K.W. Hill, Levelland
Steve Jones, Lubbock
James Kitten, Lubbock
Mike Liner, Morton
Emil Macha, Littlefield
Joe May, Lubbock
Fred McCann, Midland
Todd McKee, Lubbock
Robert Montgomery, Muleshoe
Robert Pierce, Spur
Brian Pohlmeier, Plainview
Dee Reynolds, Lorenzo
George Richardson, Littlefield
Martin Waters, Lubbock
Glen Williams, Spur
Kenny Willmon, Levelland

SPHFC Offers First Time Home Buyers Lower Interest

The South Plains Housing Finance Corporation (SPHFC), a nonprofit organization sponsored by SPAG, authorized the sale of $17.5 million worth of single family mortgage revenue bonds in 1999. Funds should be available for first time homebuyers early in 2000. Proceeds from these bonds are funneled through home mortgage lenders throughout the SPAG region and targeted to first-time home buyers. Persons who have never owned a home or have not owned a home in the past three years may qualify for the program.

The 504 SBA Loan

The Revolving Loan Fund

The Small Business Administration (SBA)

Texas Economic Development Council

Global Export Market Information System

US General Accounting Office

Bureau of Economic Analysis

Bureau of Labor Statistics

US Census Bureau

Conway Data