SOAR Act
- Sponsor
- Sen. Booker, Cory A. [D-NJ]
- Committees
- Small Business and Entrepreneurship Committee (primary)
- Last action
- Sep 30, 2026
Bottom line
The SOAR Act establishes a grant program to bolster startup accelerators, aiming to foster new business growth, particularly among underrepresented entrepreneurs and in underserved geographic areas, by providing operational funding to support organizations.
What it actually does
The SOAR Act amends the Small Business Act to establish a new "Growth Accelerator Fund Competition" program. This program will award cash grants of at least $1,000,000 to eligible organizations, primarily growth accelerators, that support new small business concerns. These funds can be used for operational costs like construction, space acquisition, and programmatic purposes, but are explicitly prohibited from being used to provide direct capital to the startups themselves.
Proponents argue
Supporters argue that startups are crucial for job creation and economic growth, but venture capital is highly concentrated geographically and demographically, leaving many promising entrepreneurs without necessary support. This bill would democratize access to entrepreneurial resources by funding the incubators and accelerators that provide vital mentorship, services, and connections, thereby helping women, minorities, and veterans launch successful businesses and stimulating innovation in underserved communities.
Opponents contend
Potential opponents might argue that direct government funding for accelerators could distort market dynamics, leading to less efficient allocation of resources compared to private investment, or create dependency on federal grants rather than fostering self-sustaining entrepreneurial ecosystems. Concerns might also be raised about the administrative burden of the program or the potential for grants to be awarded based on political considerations rather than pure merit.
The bill is concise and clearly structured, making it accessible for a quick but informed read.
Section 1
Short Title
This section establishes the official short title of the Act as the "Startup Opportunity Accelerator Act of 2026" or the "SOAR Act," which is how the legislation will commonly be referred to.
Supporters argue
A clear short title simplifies communication and reference for the public and legislative bodies, making the bill easier to discuss and understand.
Critics contend
No specific opposition is typically raised against this provision because it is a standard legislative practice.
Tradeoffs
None.
Section 2
Congressional Findings
This section outlines Congress's rationale for the bill, noting the significant role of startups in job creation, the common challenges they face, the geographic and demographic concentration of venture capital, and the importance of incubators and accelerators in supporting diverse entrepreneurs.
Section 3, inserting new Section 49 into the Small Business Act
Establishment of Growth Accelerator Fund Competition
This core provision establishes a new program under the Small Business Act, directing the Administrator of the Small Business Administration (SBA) to develop and implement a program to award cash grants of not less than $1,000,000 to "eligible entities" (growth accelerators) to support new small business concerns.
Section 49(b) of the Small Business Act (as inserted by Section 3)
Grant Funding and Permitted Uses
This subsection specifies that grants will be at least $1,000,000 and can be used for construction costs, space acquisition, and programmatic purposes. Crucially, it explicitly states that funds may not be used to provide capital directly to new small business concerns or through subawards. Funds may be disbursed incrementally.
Section 49(d) of the Small Business Act (as inserted by Section 3)
Priority for Comprehensive Support and MSI Partnerships
The Administrator must prioritize eligible entities that provide or plan to provide comprehensive support to new small businesses, including office/manufacturing/warehouse space, access to capital (from other sources), access to professional services, or formal mentorship programs. Priority is also given to entities within 20 miles of a minority-serving institution (MSI) that demonstrate a referral or programmatic relationship with that institution.
Section 49(f) of the Small Business Act (as inserted by Section 3)
Diversity and Underserved Area Funding Mandate
This subsection mandates that not less than 50% of appropriated funds must be awarded to accelerators located in specific underserved areas (defined by cross-reference to the Small Business Act, typically economically distressed areas) OR to accelerators where at least 50% of the small businesses served are owned by socially or economically disadvantaged individuals, women, Native Americans, veterans (including those in the Transition Assistance Program or honorably discharged), formerly incarcerated individuals, or individuals with disabilities.
Section 49(i) of the Small Business Act (as inserted by Section 3)
Annual Progress Reporting by Grantees
This subsection requires grant recipients to submit annual reports detailing program progress. These reports must include metrics such as the number of participating businesses, application numbers, retention rates, average participation periods, total/average/median capital raised, total/average/median employees, and the number of businesses served that are owned by various underrepresented groups (e.g., socially disadvantaged, women, veterans, formerly incarcerated, disabled individuals).
Section 49(n) of the Small Business Act (as inserted by Section 3)
Authorization of Appropriations
This subsection authorizes $80,000,000 to be appropriated to the Small Business Administration (SBA) for each of fiscal years 2027 through 2036, to remain available until expended, for the purpose of carrying out the Growth Accelerator Fund Competition program.
This provision mandates that not less than 50% of appropriated funds must go to accelerators located in an area described in subparagraph (A), (B), or (C) of section 31(b)(1) of the Small Business Act.
Section 49(f)(1) of the Small Business Act (as inserted by Section 3)
Why it matters:This is standard legislative practice to avoid reprinting lengthy definitions already present in statute, ensuring consistency with existing programs like the HUBZone program, which uses these definitions for "qualified census tract," "qualified nonmetropolitan county," and "base closure area."
Case for: Supporters argue that using existing definitions for economically distressed areas ensures that the funds are directed to communities that genuinely need economic development and entrepreneurial support, leveraging established criteria.
Case against: Critics might suggest that relying on existing definitions, particularly those tied to the HUBZone program, might not perfectly align with the specific needs of startup ecosystems, potentially overlooking other areas ripe for entrepreneurial growth.
Estimated impact: Directs a minimum of $40 million annually (assuming full appropriation) to accelerators operating in or serving these specific economically distressed or redeveloping areas.
This provision includes "formerly incarcerated individuals" and "individuals with a disability" among the specific groups whose businesses, if they constitute at least 50% of an accelerator's clientele, qualify that accelerator for the 50% funding set-aside.
Section 49(f)(2)(C)(iv) and (v) of the Small Business Act (as inserted by Section 3)
Why it matters:This is likely standard legislative enumeration, but their inclusion is substantively significant and could be missed by a casual reader focusing on broader categories like women or veterans.
Case for: Proponents argue that explicitly including these groups ensures that the program addresses systemic barriers faced by individuals who have historically been excluded from entrepreneurial opportunities, promoting a more inclusive economy.
Case against: No specific opposition is typically raised against the inclusion of these groups, though some might generally question the efficacy of highly targeted demographic set-asides versus broader, merit-based funding.
Estimated impact: Ensures that a portion of the $80 million annual authorization is directed towards accelerators that specifically support entrepreneurs who are formerly incarcerated or have disabilities, fostering their participation in the startup economy.