H.R. 915 — Small Business Technological Act of 2025, as amended
Executive Summary
H.R. 915 amends Section 7(a) of the Small Business Act to explicitly authorize the SBA to back loans used for purchasing modern business software, cloud computing services, and artificial intelligence tools. The bill clarifies that these technologies are valid uses of 7(a) loan funds for operational needs like payroll, inventory, and accounting. It includes a rule of construction ensuring this explicit authorization does not retroactively invalidate past loans or inadvertently authorize funds for research and development. This is a bipartisan, technical modernization effort to ensure small businesses can leverage SBA capital to remain technologically competitive in a digital economy.
Arguments For
- Argument 1: Modernizes the SBA 7(a) program to reflect the realities of the 21st-century economy, where software and cloud services are just as critical to business operations as physical equipment.
- Argument 2: Provides explicit statutory cover for lenders and the SBA to finance AI and SaaS products, reducing regulatory uncertainty and encouraging lenders to approve tech-focused working capital loans.
- Argument 3: Represents a bipartisan, low-controversy win that supports small business competitiveness without requiring new appropriations or expanding the federal deficit.
Likely Supporters
Arguments Against
- Argument 1: May be viewed as legislatively unnecessary since the SBA already allows working capital loans to be used for software and operational expenses.
- Argument 2: Could inadvertently encourage small businesses to take on long-term debt for rapidly depreciating software subscriptions rather than tangible, recoverable assets.
Likely Opponents
📋 Key Provisions
- Amends the SBA 7(a) loan program to explicitly allow financing for business software, cloud computing services, and artificial intelligence tools.
- Specifies that eligible uses include technology for payroll, human resources, sales, billing, accounting, and inventory tracking.
- Includes a rule of construction clarifying that this new language does not imply previous loans for these purposes were impermissible.
- Explicitly prohibits the use of 7(a) loans for research and development (R&D) purposes under this new authority.
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Verification Guide
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Authorizes loans for business software and cloud computing services.
"business software or cloud computing services"
Clarifies that past loans for these purposes were not impermissible.
"added by subsection (a), were not permissible;"
Prohibits the use of these loans for research and development.
"636(a)) for research and development purposes; or"