Small Business Administration would run grants for startup accelerators

The Small Business Administration would develop and begin running a grant program. Eligible applicants would be U.S. organizations mainly formed to help small businesses operating for no more than five years and commonly classified as growth accelerators. Each applicant must show that it will assist at least 10 covered businesses per year. Grants may pay for construction, space, and program work, but cannot provide capital to businesses directly or through smaller grants. The agency would begin the program within one year after enactment. The measure would permit $80 million to be set aside annually for fiscal years 2027 through 2036, with provided money available until spent.

For each funded fiscal year, the Small Business Administration would direct at least 50% of grant money to qualifying accelerators. An accelerator must be in an area identified by a referenced law, and at least 50% of the businesses it serves must meet the listed ownership rules. Covered businesses include those owned and controlled by socially or economically disadvantaged people or women. They also include businesses at least 51% owned by Native Americans, Defense transition-program participants, qualifying veterans, formerly incarcerated people, or people with disabilities. Qualifying veterans must have served on active duty, including in the National Guard or Reserves, and left service under conditions other than dishonorable. The 50% rule would apply separately to grant money provided for each fiscal year.

The Small Business Administration would favor listed services, weigh applicants using performance and community factors, and oversee grant recipients. Priority would apply to accelerators that offer workspace, non-grant financing connections, professional help, or structured mentoring, or that partner with a minority-serving college within 20 miles. Recipients would file annual progress reports. At the agency's discretion, it could withhold payments or demand repayment if a recipient breaks grant terms or program rules. Other civil or criminal consequences could also apply. Recipients would report every year, and the agency would send Congress a yearly report assessing the program's effectiveness.