What does Preamble of S 3876 do?

This bill, formally titled 'To amend the Small Business Act to spur entrepreneurial ecosystems in underserved communities, and for other purposes,' aims to amend the Small Business Act. The bill's stated purpose is to spur entrepreneurial ecosystems in underserved communities.

What does SHORT TITLE. of S 3876 do?

This bill is formally titled the Strengthening Place-based Access, Resources, and Knowledge Act.

What does FINDINGS. of S 3876 do?

This section outlines findings related to startup businesses and access to funding. Studies suggest that incubators and accelerators can improve business outcomes for participants. Startups owned by racial minorities face significantly higher rates of financing denial compared to non-minority-owned startups. Mission-oriented financial institutions are crucial for minority-owned businesses accessing capital. Minority- and women-owned businesses typically have fewer employees than businesses owned by non-minorities and men. Increased business creation among minorities could substantially boost the U.S. economy. Venture capital funding disproportionately favors businesses located in urban areas, with less than 1% going to rural businesses. Rural entrepreneurship rates have declined, and financial barriers are particularly challenging for minority populations in rural areas. Women founders receive a small percentage of venture capital funding. Black and Hispanic founders also receive a limited share of venture capital funding.

What does PURPOSES. of S 3876 do?

This section outlines the purposes of the Spark Program, established under section 49 of the Small Business Act. The program aims to spur economic growth in underserved communities by creating jobs and increasing access to capital. It seeks to improve the success rates of small businesses in underserved communities. The program intends to create a pathway for individuals in underserved and rural areas to become small business owners. A goal is to address revenue and employee gaps experienced by underserved small businesses. The Spark Program encourages collaboration between the Small Business Administration and community organizations. The program aims to support and expand incubators and accelerators focused on underserved communities and entrepreneurs.

What does SPARK PROGRAM. of S 3876 do?

This section establishes the 'Spark Program' to provide financial assistance to eligible entities for projects benefiting startup, newly established, and growing small business concerns. Eligible entities include organizations operating accelerators, incubators, or other small business innovation-focused projects, such as non-profits, community development financial institutions, and lenders. Projects must be accessible to small business concerns and have a full-time staff, including a director. The Administrator may enter into cooperative agreements with eligible entities for 5-year projects, with potential for 3-year renewals. The Administrator is required to publish information about the program online and submit annual reports to Congress detailing program activities and metrics, including participation data and job creation statistics. The Small Business Act is amended to redesignate section 49 and insert the new SPARK Program section.

What does SPARK FINANCING PROGRAM. of S 3876 do?

This section establishes the 'Spark Financing Program' under the Small Business Act. The program provides financial assistance to 'covered entities' who then provide grants or loans to 'covered small business concerns'. Covered small business concerns are defined as those owned by members of underserved groups or located in areas of economic distress. Financial assistance amounts vary depending on whether the covered entity has a cooperative agreement under section 49, with a maximum of $1,000,000 per year for those with agreements and $500,000 per year for those without. Grants to covered small business concerns can be up to $20,000, and loans can be provided at lower interest rates or with reduced equity requirements. Covered entities are required to verify the legitimacy of small business concerns receiving grants or loans. The Administrator is required to conduct a program examination and submit annual reports to Congress detailing the program's activities and outcomes.

What does REGULATIONS. of S 3876 do?

This section requires the Administrator of the Small Business Administration to issue regulations within one year of the Act's enactment. These regulations are intended to implement sections 49 and 50 of the Small Business Act, as amended by this Act. The regulations must include procedures to verify the proper use of financial assistance provided under sections 49 and 50. The regulations must also establish clawback provisions for instances of fraud involving financial assistance, grants, or loans.

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SPARK Act — S. 3876

Last updated: 2/12/2026 · Introduced: 2/12/2026

Author: Edward Markey (D-MA)

TL;DR (AI)

The SPARK Act establishes the 'Spark Program' to provide financial assistance to organizations operating accelerators, incubators, and similar small business innovation projects in underserved communities.
The 'Spark Financing Program' offers financial assistance to organizations that then provide grants or loans (up to $20,000) to small businesses owned by members of underserved groups or located in economically distressed areas.
The Small Business Administration will issue regulations to implement these programs, including procedures for verifying financial assistance use and clawback provisions for fraud.

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