SPARK Act

Increased Economic Growth and Job Creation: The program aims to spur economic growth by creating good-paying jobs and increasing access to capital in underserved communities (Section 3).

Support for Underserved Groups: The bill specifically targets several groups for support, including women, socially and economically disadvantaged individuals, veterans or spouses of veterans, individuals with disabilities, and members of Indian Tribes (Section 4(c)(2)(E)).

Access to Capital for Minority and Women-Owned Businesses: The bill addresses findings that startups owned by racial minorities and women are often denied financing or receive very little venture capital (Section 2) by providing loans with lower interest rates or lower required equity contributions (Section 5(c)(3)(A)(ii)).

Support for Rural Communities: The program seeks to create a pipeline for individuals in rural markets into small business ownership (Section 3) and provides assistance to businesses located in rural areas (Section 4(c)(2)(E)(v)).

Mentorship and Instruction: Eligible entities acting as accelerators or incubators will provide mentorship, instruction, and one-to-one individual counseling to help scale businesses (Section 4(a)(1) and Section 4(c)(2)(C)).

Restrictions on Direct Capital Use: Eligible entities entering into a cooperative agreement are prohibited from using the provided financial assistance to directly provide capital to any participant in their project (Section 4(c)(5)).

Grant Limitations: While the Spark Financing Program allows for grants, a covered small business concern cannot receive more than $20,000 in total through these specific grants (Section 5(c)(3)(A)(i)(II)).

Requirement for Verification Data: Small businesses receiving grants or loans may be required to provide sensitive documentation, including a description of their history, financial statements, and tax verification (Section 5(c)(4)).