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119-s-305119th CongressWALLET

Small Business Technological Act of 2025

Sponsored By: Senator Young, Todd [R-IN]

In Committee

Summary

Expands SBA 7(a) loans to cover business software, cloud services, and AI tools. It would broaden the types of business expenses eligible for federal 7(a) financing.

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  • Small businesses would be able to use 7(a) loans to buy or subscribe to business software, cloud computing services, and AI-powered tools for payroll, HR, sales, billing, accounting, inventory, and record keeping.
  • The Small Business Administration would be authorized to make loans under a new subsection (38) of Section 7(a) specifically for these technology purchases.
  • A rule of construction would clarify that the change does not affect the legality of pre-enactment loans for those purposes, does not change the authority to use loans for research and development, and does not alter the definition of working capital.

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Bill Overview

Analyzed Economic Effects

1 provisions identified: 1 benefits, 0 costs, 0 mixed.

SBA loans can cover business software

You would be able to use an SBA 7(a) loan to buy or subscribe to business software and cloud services. Covered tools include payroll, HR, sales, billing, accounting, inventory tracking, and business tools that use artificial intelligence. This would apply only to loans made under section 7(a). It would not let you use 7(a) loans for research and development. It would not change the legal definition of working capital. Loans made before enactment would remain allowable for these uses. If enacted, the change would take effect upon enactment.

Sponsors & CoSponsors

Sponsor

Young, Todd [R-IN]

IN • R

Cosponsors

  • Sen. Rosen, Jacky [D-NV]

    NV • D

    Sponsored 1/29/2025

  • Sen. Budd, Ted [R-NC]

    NC • R

    Sponsored 1/29/2025

  • Sen. Shaheen, Jeanne [D-NH]

    NH • D

    Sponsored 1/29/2025

  • Sen. Hickenlooper, John W. [D-CO]

    CO • D

    Sponsored 1/29/2025

Roll Call Votes

No roll call votes available for this bill.

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