SPARK Act
Sponsored By: Senator Markey, Edward J. [D-MA]
Introduced
Summary
Creates place-based entrepreneurial programs to boost small businesses in underserved and rural areas. This bill would establish the SPARK program and a Spark Financing Program to fund local accelerators, provide no-cost or low-cost training, and offer targeted grants and loans tied to place-based cooperative agreements and reporting.
Show full summary
- Would let the Small Business Administration award cooperative agreements to local organizations for startup and early-growth projects. Agreements may run for five years and can be renewed for three-year periods, and awards must prioritize location, partnerships, and service to underserved groups.
- Would provide grants and loans to covered small businesses in federally recognized areas of economic distress or owned by underserved individuals. Grants are capped at $20,000 per small business and loans may be offered at below-market rates or with lower equity requirements to reduce collateral barriers.
- Would limit annual Spark support to up to $1 million per covered entity with a SPARK cooperative agreement and up to $500,000 for covered entities without one. The program requires recipient verification, annual examinations, public reporting on jobs and financing, and caps administrative expenses at 10 percent of annual funding.
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Bill Overview
Analyzed Economic Effects
3 provisions identified: 2 benefits, 1 costs, 0 mixed.
Spark financing grants and loans
If enacted, the SBA would create a Spark Financing Program within one year. Covered entities with a SPARK 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 and would need to reapply each year. Spark grants to a covered small business would be limited to $20,000 total, and covered entities could also make lower-than-typical interest or lower-equity loans. Recipients would not have to pay fees to get Spark help. The SBA would require verification documents and report program metrics to Congress, and administrative costs would be capped at 10% of funds each year.
Place-based Spark cooperative agreements
If enacted, the SBA would start a SPARK program within one year to fund place-based projects for accelerators and incubators. Cooperative agreements would typically run five years and could be renewed for three-year periods. The program would prioritize federally recognized areas of economic distress, rural places, partnerships, and service to underserved groups. Recipients would get low- or no-cost training, but cooperative agreement funds could not be used to give capital directly to participants. Program awards would depend on congressional appropriations.
New SBA rules and fraud clawbacks
If enacted, the SBA would have one year to write rules to run the new cooperative agreement and financing programs. The rules would require procedures to verify that financial assistance is used properly. The rules would also create clawback steps so the SBA can recover money if someone commits fraud with Spark grants or loans.
Sponsors & CoSponsors
Sponsor
Markey, Edward J. [D-MA]
MA • D
Cosponsors
Sen. Hirono, Mazie K. [D-HI]
HI • D
Sponsored 2/12/2026
Sen. Booker, Cory A. [D-NJ]
NJ • D
Sponsored 2/12/2026
Roll Call Votes
No roll call votes available for this bill.
View on Congress.gov