This bill adds a new allowed use for Small Business Administration (SBA) 7(a) loans. It lets the SBA provide loans to finance business software, cloud computing services, or similar technology that helps business operations. Examples named in the bill include tools for product or service delivery, payroll processing, human resources, sales and billing, accounting, and tracking supplies or inventory. The bill text also says these tools may include business software that uses artificial intelligence. The bill includes three clarifications: it does not say that past 7(a) loans for these purposes were impermissible; it does not allow using 7(a) loans for research and development; and it does not change the definition of working capital.
If you are a small business, this bill would allow you to use SBA 7(a) loans to buy or subscribe to modern business software and cloud services that support operations (for example, payroll, HR, sales, billing, accounting, and inventory tracking). The bill explicitly allows tools that use artificial intelligence. It does not let you use these loans for research and development, and it does not change what counts as working capital under existing law.
No publicly available information on costs, budgetary estimates, or changes to loan amounts appears in the bill text.
The bill was introduced by Senators Todd Young, Jacklyn Rosen, Ted Budd, Jeanne Shaheen, and John Hickenlooper. The text of the bill shows the sponsors seek to authorize SBA 7(a) loans to finance access to modern business software, cloud services, and related technologies, including those that use artificial intelligence.
No publicly available information on objections, opposition statements, or alternative views appears in the bill text or provided metadata.