IDEA Act of 2025

## Summary The Increasing and Developing Entrepreneurship Access (IDEA) Act of 2025 aims to boost economic opportunities for minority-owned businesses by creating a federal grant program administered by the Under Secretary of Commerce for Minority Business Development. The program provides $1 million annually to eligible business accelerator organizations for up to five years, contingent on meeting specific requirements. These accelerators must partner with entities that support minority businesses and use the funds to deliver financial assistance (e.g., seed capital), networking programs to connect businesses with investors and innovators, and other support services. Grants are limited to regions with at least 15 minority-owned businesses earning $250,000 or more in annual revenue. The bill also mandates annual reporting to Congress on grant distribution, business impacts, and compliance issues, while imposing penalties for misuse of funds. By expanding access to capital and resources, the IDEA Act seeks to reduce systemic barriers faced by minority entrepreneurs and stimulate regional economic growth. ## Key Points - Grant Program Establishment: Creates a competitive grant program for business accelerators that support minority-owned businesses through funding, mentorship, and networking. - Funding Structure: Awards $1 million per grant annually for five years, with a total of $25 million authorized yearly (2026–2030). - Federal Share Limit: Caps federal contributions at 75% of a project’s total cost, requiring accelerators to secure at least 25% of funds from non-federal sources. - Eligible Activities: Funds must be used for direct capital transfers, networking programs linking businesses to investors, or other assistance approved by the Under Secretary. - Accountability Measures: Requires annual reports to Congress and imposes fines or up to one year in prison for intentional misuse of grant funds. ## Impact Areas - Primary Group: Minority business enterprises (MBEs), defined as businesses owned by individuals from historically underrepresented groups, as recognized under the CARES Act. - Secondary Group: Business accelerator organizations that partner with public or private entities to support MBEs, including nonprofits, incubators, or regional economic development groups. - Additional Impacts: Regional economies with significant MBE populations, as the bill targets areas with at least 15 qualifying businesses. The program may also encourage private-sector investment in minority-owned ventures. *Technical terms explained*: - Business accelerator: An organization that helps startups or growing businesses gain resources, mentorship, and connections to scale. - Minority business enterprise (MBE): A business owned and controlled by minority group members, as defined by federal criteria in the CARES Act. - Federal share: The portion of project costs covered by the government, with the remaining 25% required to come from other sources.