Small Business Technological Act of 2025

This bill allows small business loans from the Small Business Administration to be used for buying modern business software and cloud computing services, including tools that use artificial intelligence, for tasks like operations, payroll, sales, accounting, and inventory tracking. It clarifies that past loans for such purposes were allowed, but these loans cannot be used for research and development, and it does not change the definition of working capital.

Sec. 2, Additional uses for Small Business Administration business loans: The bill adds a new use for loans under section 7(a) of the Small Business Act, allowing them to finance business software, cloud computing services, or similar technology that helps with business operations, product or service delivery, payroll, human resources, sales, billing, accounting, or tracking supplies, inventory, records, and expenses, including artificial intelligence tools. It also states that this does not mean past loans for these purposes were not allowed, does not authorize loans for research and development, and does not change the definition of working capital.