S. 305 — Small Business Technological Act of 2025

This section expands the allowable purposes of Small Business Administration (SBA) section 7(a) loans—the agency's primary guaranteed lending program for small businesses unable to obtain credit elsewhere—to include financing for business software, cloud computing services, or related technologies (including artificial intelligence tools) that facilitate operations such as product or service delivery, payroll processing, human resources, sales and billing, accounting, or tracking of supplies, inventory, records, and expenses. A rule of construction clarifies that the amendment neither deems prior 7(a) loans for such purposes impermissible, nor authorizes their use for research and development, nor limits the existing definition of working capital.