HR 915: Small Business Technological Advancement Act

HR 915 in plain English: This bill expands the SBA's 7(a) loan program to allow small businesses to use guaranteed loans to finance business software and cloud computing services, including AI-based tools, that support core business operations such as payroll, human resources, sales, billing, and accounting.

Stated purpose

To explicitly allow small businesses to use SBA 7(a) loans to pay for business software and cloud computing services — including tools that use artificial intelligence — that help run their operations.

Key points

• Allows SBA 7(a) loans to cover purchases of business software and cloud computing services
• Explicitly includes AI-powered business tools as eligible expenses under the loan program
• Covers software for payroll, HR, sales, billing, accounting, and inventory tracking

Arguments supporters make

• Modern software and cloud tools are essential for small businesses to compete, and SBA loans should keep pace with how businesses actually operate today.
• Clarifying that software is an eligible use removes confusion for lenders and small business owners, making it easier to access financing that was already intended to help small businesses.
• Helping small businesses afford AI and cloud tools could improve their productivity and help them grow, which benefits local economies and workers.

Arguments opponents make

• Allowing federally backed loans for software subscriptions — which are ongoing costs rather than lasting assets — could increase the risk of default and expose taxpayers to greater losses.
• This bill could primarily benefit large technology companies by funneling government-guaranteed loan money toward their software products, rather than directly strengthening small businesses.
• The SBA 7(a) program already has broad working-capital provisions, so this change may be unnecessary and could add complexity or unintended loopholes to the loan program.

Tradeoffs

Expanding loan eligibility to cover software costs may help small businesses modernize, but it also extends federally guaranteed credit to recurring expenses that do not build lasting collateral, potentially shifting more financial risk onto the government and taxpayers.

Current status in Congress: Passed House.