SPARK Act

The SPARK Act establishes a new program within the Small Business Administration to provide financial assistance to organizations that support startups and small businesses in underserved communities, including rural areas, low-income neighborhoods, and areas with high rates of economic distress. The bill creates two main components: the Spark Program, which offers grants to incubators and accelerators to help them provide mentorship and resources to entrepreneurs, and the Spark Financing Program, which provides funds to those same organizations to make low-interest loans or grants directly to small business owners from underserved groups. Eligible recipients include community development financial institutions, minority depository institutions, and other organizations serving low-income, minority, rural, and veteran entrepreneurs. The legislation requires the SBA Administrator to develop selection criteria prioritizing projects in economically distressed areas and mandates annual reporting on job creation, capital access, and participant demographics.