What This Bill Does
The Small Business Technological Act of 2025 would amend Section 7(a) of the Small Business Act to let the Small Business Administration finance, through its loan program, the purchase of modern business software and cloud computing services. That includes tools used for operations, product or service delivery, payroll, human resources, sales and billing, accounting, inventory, records, and expenses, including software that uses artificial intelligence. The bill is aimed at small businesses that need help paying for technology upgrades, not at consumers directly. It also says the change should not be read to authorize research and development spending or to narrow the existing definition of working capital.
- Amends Section 7(a) of the Small Business Act, 15 U.S.C. 636(a).
- Lets SBA loans finance business software and cloud computing services.
- Covers payroll, HR, sales, billing, accounting, inventory, records, and expenses.
- Includes business tools that use artificial intelligence.
- Does not authorize 7(a) loans for research and development.
Who This Bill Affects
For a small business owner, this bill could make it easier to finance software that helps with payroll, billing, inventory, accounting, or cloud-based operations through an SBA 7(a) loan. If you run or work for a small firm, the practical effect would be broader access to financing for technology upgrades that are already part of everyday business management.
See how this bill affects you — sign in for a personalized analysisWho Supports & Opposes This
- small business owners They may see this as a practical way to finance essential technology without draining cash reserves. Software for payroll, billing, inventory, and records is increasingly necessary to compete, and SBA-backed financing could make upgrades more affordable.
- lenders and SBA loan intermediaries Clear statutory authority can reduce uncertainty about whether software purchases fit within permitted loan uses. That can make it easier to structure loans for modern operating needs and serve borrowers who need technology to stay efficient.
- technology vendors serving small firms Businesses that can finance software through SBA loans may be more likely to adopt cloud services and business tools, including AI-enabled products. That could expand access to digital systems that improve operations and recordkeeping.
- small business borrowers worried about debt load Even if software is useful, financing it with debt can add monthly obligations to already tight budgets. Some owners may prefer grants, tax credits, or direct assistance rather than taking on more loan repayment risk.
- fiscal conservatives concerned about program scope They may argue that expanding eligible uses of SBA loans pushes the program further into technology purchasing and away from its traditional focus on core business financing. They could also worry about administrative complexity in policing what counts as qualifying software or cloud services.
- advocates for strict loan-purpose limits Some may be concerned that allowing loans for broad categories of software, including AI tools, could blur the line between operating capital and technology investment. They may prefer clearer limits to avoid misuse or financing purchases that do not directly support business survival.
Key Implications
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““finance, in whole or in part, business software or cloud computing services””
This is the core change: SBA 7(a) loans could explicitly pay for software and cloud subscriptions, not just traditional physical business assets or general operating costs.
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““facilitates business operations, product or service delivery””
The bill ties eligible technology to everyday business functions, which means the covered purchases are meant to be operational tools rather than optional extras.
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““processing, payment, or tracking of payroll expenses””
Payroll systems are specifically named, so firms could use loan proceeds for software that helps manage employee pay and related records.
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““including business tools that utilize artificial intelligence””
AI-enabled business software is expressly included, signaling that newer digital tools are meant to qualify if they support business functions.
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““shall not be construed to… authorize… research and development purposes””
The bill draws a line between buying operational software and funding R&D, limiting the loan-use expansion to day-to-day business technology.
Latest Status
June 3, 2026
Placed on the Union Calendar, Calendar No. 591.
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Ask AI about this billData sourced from api.congress.gov.