Small Business Technological Act of 2025
The Small Business Technological Act of 2025 would broaden the SBA’s 7(a) loan program to explicitly allow loans to finance modern business software, cloud computing services, and related technology that supports everyday business operations. This includes tools that improve payroll processing, human resources, sales and billing, accounting, inventory and records management, and even AI-enabled business tools. The goal is to help small businesses adopt and pay for up-to-date software and cloud services to boost efficiency, productivity, and competitiveness. The bill also provides a rule of construction to ensure it does not retrospectively invalidate existing loans for these purposes, does not authorize research and development funding, and does not alter the definition of working capital. In essence, it adds a specific eligible use to the 7(a) program while keeping other SBA loan rules intact.
Key Points
- 1Adds a new eligible use to the SBA 7(a) loan program: financing modern business software, cloud computing services, and related technology that supports operations and back-office functions, including AI-enabled tools.
- 2Eligible applications cover a broad range of activities: payroll processing, HR, sales and billing, accounting, inventory management, records, and expense tracking.
- 3Allows loans to finance these technologies in whole or in part, meaning borrowers don’t have to cover the full cost upfront.
- 4Ensures the new authority does not retroactively invalidate pre-enactment loans for these purposes, does not fund R&D, and does not change the existing definition of working capital.
- 5The amendment is limited to clarifying and expanding allowed uses within the existing 7(a) framework; it does not create a new loan program or require new funding outside the SBA’s current 7(a) authority.