Small Business Technological Advancement Act in plain language
1: Short title
This section gives the Act its official short name, the Small Business Technological Act of 2025.
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1. Short title This Act may be cited as the Small Business Technological Act of 2025 .
2: Additional uses for small business administration business loans
This section would add a new allowed use for loans made under section 7(a) of the Small Business Act, the main loan program the Small Business Administration guarantees. The Administration could provide these loans to pay, in whole or in part, for business software, cloud computing services, or similar technology that helps a small business run its operations, deliver products or services, process, pay, or track payroll expenses, handle human resources, handle sales and billing, or track and account for supplies, inventory, records, and expenses. This includes business tools that use artificial intelligence. The section also makes clear that this change does not mean any section 7(a) loans made before the Act becomes law for these same purposes were improper or not allowed; it does not let section 7(a) loans be used for research and development; and it does not narrow the existing definition of working capital under the Small Business Act.
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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. . (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. ).