SPARK Act
- Bill Number
- H.R. 8063
- Origin Chamber
- House
- Congress
- 119th Congress, Session 2
- Policy Area
- Commerce
- Status
- Introduced
- Latest Action
- 2026-03-24: Referred to the House Committee on Small Business.
- Last Updated
- 2026-05-08T08:06:44Z
AI-Generated Summary
H.R. 8063: Strengthening Place-based Access, Resources, and Knowledge Act (SPARK Act)
Purpose
The legislation aims to boost entrepreneurship in underserved communities—such as low-income, minority, rural, and economically distressed areas—by creating job growth, improving access to capital, and supporting small business success through incubators, accelerators, and financing. It addresses disparities where minority-owned, women-owned, and rural startups face higher denial rates for funding and lower success metrics.
Key Provisions
- SPARK Program (new Section 49 of Small Business Act):
- Small Business Administration (SBA) enters 5-year cooperative agreements (renewable for 3 years) with eligible entities (e.g., nonprofits, community development financial institutions [CDFIs], minority depository institutions [MDIs], community colleges) to run projects supporting startups, new, or growing small businesses.
- Projects must include full-time staff, joint SBA-entity services like one-on-one counseling and structured mentorship, no participant fees, and focus on underserved groups (women, minorities, veterans, people with disabilities, rural businesses, Tribal members, formerly incarcerated individuals, low-income community employees).
- Minimum annual funding: $500,000 per entity; prioritizes renewals and distressed/rural areas.
- Requires annual exams, training, privacy protections, public reporting, and coordination with other SBA partners and federal programs.
- SPARK Financing Program (new Section 50):
- SBA provides grants/loans to covered entities (eligible entities or approved lenders) to offer:
- Grants up to $20,000 to covered small businesses (owned by underserved groups or in distress areas) for business projects.
- Low-interest loans or reduced-equity loans to reduce denials due to lack of collateral.
- Funding up to $1M/year for SPARK Program participants; $500,000/year for others (annual reapplication).
- No fees to recipients; requires business verification (e.g., financials, tax docs, business plans).
- General Requirements:
- SBA must issue regulations within 1 year, including fraud clawbacks (recovering misused funds).
- Annual reports to Congress on metrics like participant numbers, retention, capital raised, jobs created/sustained (broken down by race, gender, veteran status, urban/rural).
- Authorizes necessary appropriations; limits SBA admin costs to 10%.
Significant Changes to Existing Law
- Inserts new Sections 49 and 50 into the Small Business Act (15 U.S.C. 631 et seq.), redesignating prior Section 49 as 51.
- Introduces dedicated programs for place-based incubators/accelerators and targeted financing, building on but distinct from existing SBA tools like HUBZones (economically distressed areas) or microloans.
- Adds renewal priorities, minimum funding floors, joint service mandates, and equity-focused criteria not previously specified.
Potential Impacts
- Government Agencies: SBA gains new program implementation duties (e.g., agreements, exams, reports) within 1 year; up to 10% of funds for admin.
- Citizens: Increases support for ~9.5M potential jobs from higher minority entrepreneurship; aids underserved small businesses with mentorship, capital, and regulatory info, potentially lowering failure rates.
- International Relations: None directly addressed.
- Broader economy: Targets rural (1% VC funding), women (2% VC), Black/Hispanic founders (<3% VC) gaps.
Main Stakeholders Affected
- SBA and Partners: Implements and funds programs; coordinates with CDFIs, MDIs, colleges, lenders.
- Eligible/Covered Entities: Nonprofits, lenders, colleges receive funding to deliver services/loans.
- Small Businesses: Startups/new/growing firms in underserved/distressed areas benefit from free counseling, mentorship, grants/loans.
- Underserved Groups: Minorities, women, veterans, disabled individuals, rural/Tribal residents, ex-offenders gain targeted access.
- Communities: Low-income, rural, HUBZone/Promise Zone residents see ecosystem growth.
Notable Legal, Constitutional, or Political Implications
- Legal: Mandates due process for terminating agreements (hearings/appeals under Administrative Procedure Act); strict privacy rules (no disclosure without consent, except audits/court orders); fraud clawbacks.
- Constitutional: Neutral; promotes equal economic opportunity without race-based quotas (uses "socially/economically disadvantaged" per existing SBA definitions).
- Political: Equity-focused (e.g., disparities data), subject to appropriations; requires studies on metrics by location/type, potentially influencing future funding debates. No contracting goals impact for federal agencies.
This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.
Sponsor
Rep. Pressley, Ayanna [D-MA-7]
Cosponsors (1)
Rep. Simon, Lateefah [D-CA-12]
Recent Actions
- 2026-03-24: Referred to the House Committee on Small Business.
- 2026-03-24: Introduced in House
- 2026-03-24: Introduced in House
Bill Versions
- Strengthening Place-based Access, Resources, and Knowledge Act — issued 2026-03-24 — PDF (41 pages)