A bipartisan bill was introduced in the U.S. Senate this week that seeks to help small business owners integrate digital tools into their businesses.
Specifically, the Small Business Technological Advancement Act would clarify that small businesses can utilize the Small Business Administration’s (SBA) 7(a) loan program to finance technology that supports daily operations.
“Technological advancements have created opportunities for small businesses to tap into the digital economy and expand their customer base. However, the high upfront and ongoing costs associated with these technologies can pose financial challenges,” Sen. Todd Young (R-IN), one of the bill’s sponsors, said. “Our bipartisan bill would mitigate these economic barriers, facilitating the adoption of digital tools by small businesses in Indiana and across the country.”
Along with Young, the bill was sponsored by U.S. Sens. Jacky Rosen (D-NV), Ted Budd (R-NC), and Jeanne Shaheen (D-NH).
“Small businesses are the heart of Nevada’s economy, and I’ll continue doing everything I can to help them thrive,” Rosen said. “This bipartisan legislation will cut through bureaucratic red tape and give small businesses the resources to modernize their systems and better compete in this digital era.”
The Small Business Technological Advancement Act would allow 7(a) loan borrowers to finance business software or cloud computing services that facilitate daily operations; product or service delivery; processing, payment, and tracking of payroll expenses; human resources; sales and billing functions; and accounting or tracking of supplies, inventory, records and expenses.
“The global economy has become more reliant on technology and the pandemic only accelerated that trend, forcing businesses to utilize new software, digital tools and online work. When small businesses incorporate more technology into their operations, they are more likely to grow and provide more good jobs,” Shaheen said. “The Small Business Technological Advancement Act will clarify that small businesses can use SBA’s 7(a) loans to access these important digital tools to help manage and grow their businesses.”