Small Business Technological Act of 2025

S 305, the Small Business Technological Act of 2025, expands eligibility for Small Business Administration (SBA) Section 7(a) loans to cover business software, cloud computing services, and AI-powered tools that support core operations like payroll, HR, sales, billing, accounting, and inventory management. The bill directly affects small businesses seeking SBA loans by allowing these funds to finance technology tools they previously could not use for such purposes. It explicitly excludes research and development from eligible uses and clarifies that existing working capital definitions remain unchanged. This policy change modifies the SBA’s existing loan program without creating new funding or altering prior loan approvals for qualifying technology.