Small business owners who rely on SBA loans to fund their operations have faced uncertainty about whether business software subscriptions and cloud computing tools count as eligible expenses. This bill removes that ambiguity by explicitly adding software, cloud computing services, and other business technology to the list of approved uses for SBA 7(a) loans — including tools for payroll, HR, sales, billing, accounting, and inventory management, even if those tools use artificial intelligence. The change does not cover research and development spending, and it does not alter what counts as working capital under the Small Business Act. For small businesses looking to modernize their operations, this clarification could make it easier to access loan funding for technology upgrades.
Congressional Summary
Small Business Technological Act of 2025This bill authorizes the Small Business Administration (SBA) to finance under the 7(a) loan program business software or cloud computing services that facilitate business operations, product or service delivery, payroll processing, human resources functions, sales and billing functions, or accounting or tracking of inventory. Such software or services include business tools that utilize artificial intelligence.The 7(a) loan program is the SBA's primary business loan program that provides loan guaranties for participating lenders to provide financing to small businesses that are otherwise unable obtain reasonable credit terms.
Legislative Subjects
Details
- Congress
- 119th
- Chamber
- House
- Status
- summarized
- Action
- Reported to House
- Action Date
- 2026-06-03
- Date Added
- 2026-06-19
- Source
- Congress.gov →
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