SPARK Act
Sponsored By: Representative Pressley, Ayanna [D-MA-7]
Introduced
Summary
Expands federal support for place-based entrepreneurial hubs and financing for underserved small businesses. This bill would create a SPARK Program to fund local accelerators and incubators through cooperative agreements and a Spark Financing Program to give capped grants and lower-cost loans to small businesses owned by underserved people or located in federally recognized areas of economic distress.
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- Accelerator, incubator, and community partners would be eligible for cooperative agreements to run 5-year projects that can renew for 3-year periods. Projects must provide full-time staffing, one-to-one counseling, formal mentorship, no-fee participation, and cannot use cooperative funds to give direct capital to participants.
- Small businesses owned by women, veterans, people with disabilities, members of Tribal nations, formerly incarcerated individuals, rural firms, and other enumerated underserved groups would gain access to grants and loans. Grants are capped at $20,000 per business. Covered entities can get annual financing capped at $1,000,000 if tied to a cooperative agreement or $500,000 if not.
- The Small Business Administration would provide low- or no-cost training and require annual reports on loans, grants, ownership demographics, jobs, and program metrics. Not more than 10 percent of financing-program funds may pay administrative costs.
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Bill Overview
Analyzed Economic Effects
3 provisions identified: 2 benefits, 0 costs, 1 mixed.
Grants and low-cost loans for small businesses
If enacted, the SBA would create a Spark Financing Program within one year to give grants and loans to local lenders and community groups for on‑lending to covered small businesses. Covered small businesses would be eligible for grants up to $20,000 total per business and for lower‑cost loans from program lenders. Entities with a SPARK cooperative agreement could get up to $1,000,000 per year; other covered entities could get up to $500,000 per year but must reapply annually. The program would be funded by appropriations (authorized as “such sums as may be necessary”), the SBA could spend no more than 10% of yearly funds on its own admin, and lenders could not charge recipients fees.
Local centers to help small businesses
If enacted, the SBA would set up place-based SPARK projects within one year that fund local centers to serve startups and growing small businesses. Cooperative agreements would fund 5-year projects that may renew for 3-year periods. Centers would have full‑time staff, a director who can manage funds, one‑to‑one counseling, and a formal mentorship program. Projects could not charge participants fees and could not use those cooperative‑agreement funds to give direct cash to businesses.
Reporting and oversight for program partners
If enacted, the SBA would require covered entities and SPARK projects to keep records, verify recipients, and provide performance metrics. The SBA would publish program information online, give no‑ or low‑cost startup training to partners, and send annual reports to Congress starting one year after the Financing Program is set up. The SBA must also study reporting needs and report to Congress within two years after enactment. The SBA could withdraw or refuse to renew assistance if required information or results are missing.
Sponsors & CoSponsors
Sponsor
Pressley, Ayanna [D-MA-7]
MA • D
Cosponsors
Simon
CA • D
Sponsored 5/7/2026
Roll Call Votes
No roll call votes available for this bill.
View on Congress.gov