This bill expands the authorized uses of Small Business Administration (SBA) 7(a) loans, allowing small businesses to use these loans for purchasing modern business software and cloud computing services—including tools that use artificial intelligence (AI)—to support routine operations like payroll, HR, sales, billing, accounting, and inventory. It prohibits using these loans for research and development, ensuring funds go toward operational improvements. It also clarifies that such uses of SBA loans were already allowed before this bill and does not alter the definition of working capital under the Small Business Act.
