Small Business Technological Act of 2025
The source supplies the latest action, but no lifecycle stage.
Latest action (21 May 2025): Committee on Small Business and Entrepreneurship. Hearings held.
What this bill does
S. 305, the Small Business Technological Act of 2025, would amend the Small Business Act to explicitly authorize the Small Business Administration's 7(a) loan program to finance business software, cloud computing services, and related technology. Covered uses include tools for business operations, product or service delivery, payroll processing and tracking, human resources, sales and billing, and accounting or inventory tracking, including software that uses artificial intelligence. The bill clarifies that this change does not imply prior loans for such purposes were improper, does not permit loans for research and development, and does not otherwise narrow the existing definition of "working capital" under the Act.
The bill primarily affects small businesses seeking SBA-backed 7(a) loans, as well as lenders participating in that program. By naming modern software and cloud services as explicitly eligible uses, the bill aims to give clearer authority for small businesses to use these loans to adopt digital tools for managing operations, payroll, HR, sales, and accounting.
The bill was introduced on January 29, 2025, by Senator Todd Young along with several cosponsors, and referred to the Senate Committee on Small Business and Entrepreneurship. It has not yet received a committee vote or floor action. As with most introduced bills, it would need to be approved by the committee, pass both chambers of Congress, and be signed by the President to become law.
Plain-English summary generated by Bill100 AI from the official record. Always verify against the source below.
Timeline
21 May 2025
Committee on Small Business and Entrepreneurship. Hearings held.
Common questions
- What does S. 305 do?
- S. 305, the Small Business Technological Act of 2025, would amend the Small Business Act to explicitly authorize the Small Business Administration's 7(a) loan program to finance business software, cloud computing services, and related technology. Covered uses include tools for business operations, product or service delivery, payroll processing and tracking, human resources, sales and billing, and accounting or inventory tracking, including software that uses artificial intelligence. The bill clarifies that this change does not imply prior loans for such purposes were improper, does not permit loans for research and development, and does not otherwise narrow the existing definition of "working capital" under the Act. The bill primarily affects small businesses seeking SBA-backed 7(a) loans, as well as lenders participating in that program. By naming modern software and cloud services as explicitly eligible uses, the bill aims to give clearer authority for small businesses to use these loans to adopt digital tools for managing operations, payroll, HR, sales, and accounting. The bill was introduced on January 29, 2025, by Senator Todd Young along with several cosponsors, and referred to the Senate Committee on Small Business and Entrepreneurship. It has not yet received a committee vote or floor action. As with most introduced bills, it would need to be approved by the committee, pass both chambers of Congress, and be signed by the President to become law.
- Has S. 305 become law?
- The source does not supply a confirmed lifecycle stage for S. 305. Check the latest action and official source below.
- Who sponsored S. 305?
- S. 305 was sponsored by Sen. Young, Todd [R-IN] (R-IN), with 4 cosponsors.
- What's the latest action on S. 305?
- Committee on Small Business and Entrepreneurship. Hearings held. (21 May 2025).
Related bills in Commerce
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Small Business Payment for Performance Act of 2026
Combating Foreign Threats to Main Street Act of 2026
More bills from Sen. Young, Todd [R-IN]
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Federal Receivership Fairness Act
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