A bipartisan group of senators introduced legislation last week to help small business owners integrate digital tools into their businesses.
The Small Business Technological Advancement Act (S.305) would clarify that small businesses can utilize the Small Business Administration’s 7 (a) loan program to finance technology that supports daily operations.
Specifically, it would allow borrowers to finance business software or cloud computing services for the following:
- Facilitating daily operations;
- Product or service delivery;
- Processing, payment, and tracking of payroll expenses;
- Human resources;
- Sales and billing functions; and/or
- Accounting or tracking of supplies, inventory, records and expenses.
“Small businesses are the lifeblood of Indiana’s economy,” U.S. Sen. Todd Young (R-IN), one of the bill’s sponsors, said. “Our bill will promote the adoption of digital tools so that Hoosier small businesses can better compete in today’s economy.”
Along with Young, the bill is sponsored by U.S. Sens. Jacky Rosen (D-Nev.), Ted Budd (R-NC), and Jeanne Shaheen (D-NH).
“Small businesses are the backbone of Nevada’s economy, and I’m committed to helping them thrive in any way I can,” Rosen said. “That’s why I’m helping to introduce this bipartisan bill that will free up federal resources to make sure small businesses have the technological support they need to modernize their operations and continue to compete.”
In recent years, there has been an accelerated digital transformation among small businesses. This bill would help small businesses continue to bridge this technological gap
“Ensuring that small business can use 7(a) loans for digital tools is a commonsense way to help job creators compete in the modern economy,” Budd said.
Shaheen added that it is important to cut red tape to allow businesses to use digital tools to help them grow their businesses.
“Our commonsense, bipartisan bill will empower small businesses to use SBA’s 7(a) loans to access new software, digital tools and online work,” Shaheen said