The IDEA Act of 2025 establishes a grant program to provide $1 million annually for five years to business accelerator entities that directly support established minority-owned businesses with capital, networking, and other assistance.
Haley Stevens
Representative
MI-11
The IDEA Act of 2025 establishes a new grant program to boost entrepreneurship opportunities for minority-owned businesses (MBEs). This program will award \$1 million annually for five years to approved "business accelerator entities." These entities must use the funds to provide capital, networking, and direct assistance to established MBEs within specific high-performing regions. The bill includes strict accountability measures and penalties for the misuse of federal funds.
IDEA Act Authorizes $25M Annually to Fund Accelerators for Established Minority Businesses
The new Increasing and Developing Entrepreneurship Access Act of 2025 (IDEA Act) is setting up a dedicated grant program aimed at boosting established Minority Business Enterprises (MBEs). Essentially, the government is putting up $25 million every year, from 2026 through 2030, to fund organizations that already specialize in helping these businesses grow.
The $1 Million Accelerator Boost
This isn’t a program for startups still figuring things out. The IDEA Act targets “business accelerator entities”—organizations that provide seed investment, networking, or help MBEs raise capital—and gives them a serious injection of cash. Each selected entity will receive a $1,000,000 grant annually for five years to support MBEs in their area. The catch is that the accelerator has to put up some skin in the game: the federal grant can only cover 75% of the total expenses, meaning the entity needs to secure the remaining 25% from non-federal sources. For smaller, grassroots accelerators, finding that matching 25% could be a real hurdle, potentially favoring larger, better-funded organizations.
Targeting Established Businesses Only
The funding is highly focused. The money must be used to support MBEs located in a region where there are already at least 15 MBEs, and each of those businesses must be pulling in at least $250,000 in annual revenue. Think of it this way: if you run a small, minority-owned construction firm or a software company that’s already established and generating solid revenue, this program is designed to help you hit the next level—not just get off the ground. The funds can be used for direct capital (cash), setting up networking programs, or any other assistance the Under Secretary of Commerce for Minority Business Development deems appropriate.
Accountability and the Fine Print
For those of us who care about how taxpayer money is spent, the bill includes mandatory accountability. The Under Secretary has to report to Congress every year, detailing exactly how many grants were given out and how many MBEs actually received help. This reporting helps track the program’s real-world effectiveness. However, there is a provision that gives the Under Secretary significant discretion, allowing funds to be used for “any other assistance the Under Secretary thinks is appropriate.” While this flexibility could be useful, it’s a broad mandate that could be interpreted widely. Finally, the bill takes misuse seriously: any accelerator entity that knowingly misuses the grant money faces potential fines or up to one year in prison, a strong deterrent against fraud.