PRIA Logo™
119-hr-8063119th CongressWALLET

SPARK Act

Sponsored By: Representative Pressley, Ayanna [D-MA-7]

Introduced

Summary

Expand incubator, accelerator, and targeted financing access for underserved small businesses. This bill would create an SBA-run SPARK Program and a Spark Financing Program to bring free local support, mentorship, and tailored funding to startups and growing firms in distressed and underserved areas.

Show full summary
  • Entrepreneurs in rural and underserved communities, including minority- and women-owned firms, veterans, and people with disabilities, would gain more local incubator and accelerator support aimed at startups, newly established, and growing small businesses, cooperatives, and community land trusts.
  • Local accelerators, incubators, community colleges, community development financial institutions, minority depository institutions, nonprofits, and similar organizations could run 5-year cooperative projects with the SBA. Projects must provide one-to-one counseling, a formal mentorship program, targeted outreach, be accessible, charge no participant fees, and have full-time leadership.
  • A Spark Financing Program would let covered entities with SBA cooperative agreements receive up to $1.0 million per year and entities without agreements up to $500,000 per year. Funds may be used for grants and favorable loans; the SBA would require verification, annual exams, reporting, and could suspend or end funding for poor documentation or results.

Personalized for You

How does this bill affect your finances?

Personalize government policy and PRIA will tell you what this bill means for your household, plus every other piece of legislation we track. PRIA reads each provision against your financial profile to show you exactly what matters to your wallet.

Free to download

Bill Overview

Analyzed Economic Effects

2 provisions identified: 0 benefits, 0 costs, 2 mixed.

New small business grants and loans

This bill would require the SBA to create a SPARK Financing Program within one year. The SBA would give financial assistance to covered entities, which would make grants and loans to covered small businesses. Covered small businesses would be owned by underserved people or located in designated distressed areas. Grants to any covered small business would be capped at $20,000 total in lifetime awards. Covered entities with a cooperative agreement could get up to $1,000,000 per year. Covered entities without a cooperative agreement could get up to $500,000 per year but must reapply each year. Approved lenders could use program funds to offer lower-cost loans to reduce collateral denials. Recipients and lenders would face verification, annual audits, reporting, and fraud clawbacks under SBA regulations. The SBA would limit public disclosure of recipient contact details and must report program metrics annually. Administrative expenses for each section would be capped at 10 percent of amounts made available.

Free local business incubator support

This bill would create a SPARK cooperative program for local incubators and accelerators. The SBA would make five-year cooperative agreements that can be renewed for three years. Eligible organizations would include nonprofits, CDFIs, minority banks, certain lenders, certified development companies, and some colleges. Projects must be free to participants, accessible, staffed by a full-time director, and cannot use cooperative funds to give capital. Any cooperative agreement would guarantee at least $500,000 per year. The SBA would publish selection criteria and provide free or low-cost training. The SBA would have to give written reasons and appeal rights before ending or not renewing an agreement.

Sponsors & CoSponsors

Sponsor

Pressley, Ayanna [D-MA-7]

MA • D

Cosponsors

  • Rep. Simon, Lateefah [D-CA-12]

    CA • D

    Sponsored 5/7/2026

Roll Call Votes

No roll call votes available for this bill.

View on Congress.gov
Back to Legislation