Small Business Technological Act of 2025
Latest action (29 Jan 2025): Introduced
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.
Official summary
This bill is in the first stage of the legislative process. It was introduced into Congress on January 29, 2025. It will typically be considered by committee next before it is possibly sent on to the House or Senate as a whole.
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?
- Not yet. As of 29 Jan 2025, S. 305 is introduced.
- Who sponsored S. 305?
- S. 305 was sponsored by Sen. Todd Young [R-IN] (Republican-IN), with 4 cosponsors.
- What's the latest action on S. 305?
- Introduced (29 Jan 2025).
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