Authorize the Small Business Administration to provide loans for business software, cloud computing services, and technology that utilize artificial intelligence. Permit these loans to support business operations, including the processing, payment, or tracking of payroll expenses, human resources, sales and billing functions, and accounting or tracking of supplies, inventory, records, and expenses. Clarify that this provision does not invalidate prior loans made for similar purposes under the Small Business Act. Prohibit the use of these loans for research and development activities. Ensure the amendment does not alter the definition of working capital in the context of the Small Business Act.
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S.305 Small Business Technological Act of 2025
ETO AGORA · U.S. federal laws · 2025
Summary
Authorize the Small Business Administration to provide loans for business software, cloud computing services, and technology that utilize artificial intelligence.
Permit these loans to support business operations, including the processing, payment, or tracking of payroll expenses, human resources, sales and billing functions, and accounting or tracking of supplies, inventory, records, and expenses.
Clarify that this provision does not invalidate prior loans made for similar purposes under the Small Business Act.
Prohibit the use of these loans for research and development activities.
Ensure the amendment does not alter the definition of working capital in the context of the Small Business Act.
Ignore. Lacks provisions related to artificial intelligence.
A BILL To authorize small business loans to finance access to modern business software, and for other purposes.
Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,
SECTION 1. Short title.
This Act may be cited as the “Small Business Technological Act of 2025”.
Allows the Small Business Administration to offer loans for AI-based business software and cloud services.
SEC. 2. Additional uses for small business administration business loans.
(a) In general.—Section 7(a) of the Small Business Act (15 U.S.C. 636(a)) is amended by adding at the end the following:
“(38) ACCESS TO MODERN BUSINESS SOFTWARE.—The Administration may provide loans under this subsection to finance, in whole or in part, business software or cloud computing services, or any such technology, that facilitates business operations, product or service delivery, the processing, payment, or tracking of payroll expenses, human resources, sales and billing functions, or accounting or tracking of supplies, inventory, records and expenses, including business tools that utilize artificial intelligence.”.
Ignores artificial intelligence-related information; no AI governance implications presented in the text.
(b) Rule of construction.—Nothing in the amendment made by subsection (a) shall be construed to—
(1) provide that loans made under section 7(a) of the Small Business Act (15 U.S.C. 636(a)) before the date of enactment of this Act for the purposes described in paragraph (38) of such section 7(a), as added by subsection (a), were not permissible;
(2) authorize the use of loans made under section 7(a) of the Small Business Act (15 U.S.C. 636(a)) for research and development purposes; or
(3) limit the definition of working capital under the Small Business Act (15 U.S.C. 631 et seq.).