HR 915: Small Business Technological Advancement Act

HR 915 in plain English: This bill would allow the Small Business Administration to use its 7(a) loan program to finance the purchase of business software and cloud computing services for small businesses, including tools that use artificial intelligence. Currently the primary SBA loan program, the 7(a) program provides loan guarantees to lenders serving small businesses that cannot obtain credit elsewhere.

Stated purpose

To allow the SBA's 7(a) loan program to explicitly finance business software and cloud computing services — including AI-based tools — that help small businesses run their operations, manage payroll, handle sales and billing, and track inventory.

Key points

• Expands SBA 7(a) loans to cover business software and cloud computing services
• Eligible software includes tools for payroll, HR, sales, billing, accounting, and inventory
• Explicitly includes AI-powered business tools as qualifying purchases

Arguments supporters make

• Many small businesses can't afford modern software upfront, and this gives them a path to access tools that help them compete and grow.
• Explicitly listing software and AI tools as eligible uses removes ambiguity for lenders and borrowers, making it easier to get approved.
• Helping small businesses modernize their technology supports job creation and keeps them competitive against larger companies with bigger tech budgets.

Arguments opponents make

• Software and subscriptions are ongoing operating costs, and taking out loans to pay for them could leave small businesses in debt for expenses that don't build lasting business value.
• The SBA 7(a) program already has limited capacity, and expanding eligible uses could stretch resources and reduce access for businesses seeking loans for more traditional needs like equipment or real estate.
• Small businesses that struggle to repay software loans could face financial hardship, and taxpayers bear risk through the federal loan guarantee if those loans default.

Tradeoffs

Expanding loan eligibility gives small businesses more flexibility to modernize, but it also means federal loan guarantees back debt taken on for recurring software costs rather than tangible assets, shifting some financial risk to taxpayers if businesses cannot repay.

Current status in Congress: Passed House.

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