SPARK Act

Increased access to capital for underserved groups: The Spark Financing Program allows eligible entities to provide loans with lower interest rates or lower required equity to help businesses that face historical exclusion from credit markets. (Section 50(c)(3)(A)(ii))

Support for business growth through mentorship: The program supports incubators and accelerators that provide instruction and mentorship to help businesses scale. (Section s 49(a)(1))

Economic opportunities for specific underserved populations: The project requirements ensure that assistance reaches women, socially and economically disadvantaged individuals, veterans or spouses of veterans, individuals with disabilities, and members of Indian Tribes. (Section 49(c)(2)(E))

Job creation and economic growth: The program's purpose is to spur economic growth by creating good paying jobs and closing revenue gaps in underserved communities. (Section 3)

Support for rural areas: The bill targets rural areas where venture capital funding is currently very low to help build a pipeline into small business ownership. (Section 2 and Section 49(c)(2)(E)(v))

Direct financial assistance through grants: Small business concerns can receive grants of up to $20,000 for specific projects. (Section 50(c)(3)(A)(i)(II))

Restrictions on the use of funds: Eligible entities are strictly prohibited from using the financial assistance provided under a cooperative agreement to directly provide capital to any participant in their project. (Section 49(c)(5))

Strict reporting and verification requirements: Small business concerns receiving grants or loans must provide documentation including business plans and financial statements to verify legitimacy. (Section 50(c)(4))

Risk of fund clawbacks: The Administrator is tasked with establishing regulations for clawback provisions in instances of fraud regarding financial assistance or loans. (Section 6)