The bill increases transparency, accountability, and federal alignment in how the SBA uses AI—helping small businesses and oversight—while creating short-term administrative costs, tight deadlines, and potential disclosure risks that must be managed.
Small-business owners and SBA contractors will get clearer policies and greater transparency about how the SBA uses AI, improving predictability for applicants and contractors.
Small-business owners will face less opaque automated decision‑making because the bill requires documented roles and published AI use cases, improving accountability and reducing risk of harm to applicants.
Federal employees and small-business stakeholders will benefit from SBA practices aligned with existing federal AI guidance (Advancing American AI Act section 7225 and OMB M–25–21), supporting consistent risk management and oversight across agencies.
Taxpayers and small-business owners will bear administrative costs as the SBA prepares and implements the AI plan, which may divert staffing or funds from other programs.
Federal employees and SBA planners will face pressure from a 45-day deadline that could rush planning and produce incomplete or burdensome documentation requiring later revisions.
Federal employees and small-business stakeholders could face increased complexity and risk if published AI use cases reveal operational details that require careful redaction to protect sensitive procurement or security information.
Based on analysis of 2 sections of legislative text.
Requires the SBA to implement a GAO report’s AI recommendations and submit an implementation plan within 45 days detailing actions, timelines, and disclosure procedures.
Official title: To require the Administrator of the Small Business Administration to implement a certain recommendation relating to artificial intelligence adoption, and for other purposes.
Introduced May 4, 2026 by Hillary Scholten · Last progress May 4, 2026
Requires the Small Business Administration (SBA) to implement recommendations from a GAO report on AI uses and risks for small business contracting and innovation research. The SBA must deliver an implementation plan within 45 days that spells out actions, timelines, roles, and documentation for disclosing and managing the agency’s use of artificial intelligence consistent with federal AI guidance.