The SPARK Act aims to stimulate economic development and support small businesses in underserved communities through two distinct programs administered by the Small Business Administration (SBA). These initiatives seek to address significant disparities in access to capital and resources faced by minority-owned, women-owned, and rural businesses, as highlighted by various studies. The bill recognizes the proven effectiveness of incubators and accelerators in fostering business success and job creation, intending to leverage these models to spur economic growth and create jobs. The first component, the SPARK Program , authorizes the SBA Administrator to enter into five-year cooperative agreements with eligible entities, such as accelerators, incubators, and other innovation-focused projects. These entities will provide comprehensive support, including one-on-one counseling and formal mentorship, to startup, newly established, and growing small businesses. Projects must be strategically located for maximum accessibility and are required to serve various underserved groups , including women, socially and economically disadvantaged individuals, veterans, individuals with disabilities, and businesses in rural or economically distressed areas. A key provision of the SPARK Program is that participating entities cannot charge fees for their services, ensuring broad access for small businesses. The Administrator will establish criteria for awarding these agreements, prioritizing projects in federally recognized areas of economic distress, rural areas, or those lacking sufficient entrepreneurial resources. These criteria also emphasize partnerships with local stakeholders and a commitment to serving the identified underserved groups. The second component is the SPARK Financing Program , which establishes a grant and loan initiative to directly address capital access barriers. Under this program, covered entities, including those participating in the SPARK Program, will receive financial assistance to provide grants and low-interest loans to "covered small business concerns." These concerns are defined as businesses owned by members of underserved groups or located in federally recognized areas of economic distress. Grants provided under this program are capped at $20,000 per small business and are intended for projects that align with specific economic development objectives. Loans are designed to offer significantly lower interest rates or reduced equity contributions, aiming to increase financing accessibility and reduce denial rates for underserved businesses. The bill explicitly prohibits charging fees to small businesses for these grants or loans, further lowering financial hurdles. Both programs mandate annual programmatic and financial examinations of participating entities to ensure accountability and effective use of funds. Furthermore, annual reports to Congress will detail key metrics such as participant demographics, capital accessed, job creation, and retention rates, ensuring transparency and ongoing evaluation of the programs' impact. Finally, the Administrator must issue regulations within one year to implement both programs, including verification of fund use and fraud clawback provisions.