This bill lets small businesses use SBA 7(a) loans to pay for modern software and cloud services. That includes tools that help with everyday tasks like payroll, human resources, sales, billing, accounting, and tracking supplies and inventory. It also covers business tools that use artificial intelligence to help run operations more efficiently.

It also makes clear that this change doesn’t allow using these loans for research and development, doesn’t change what counts as “working capital,” and confirms that past loans used for these kinds of software needs were still allowed.

• Who is affected: Small businesses seeking SBA-backed loans
• What changes: SBA loans can be used to buy or subscribe to business software and cloud services, including AI tools, for daily operations
• What’s not allowed: Using these loans for research and development
• When: Takes effect upon enactment of the bill