Small businesses can use federal loans to buy software and AI tools.
S. 305 — Small Business Technological Act of 2025 · Filed by Todd Young (R-IN) · 4 cosponsors · Introduced Jan 29, 2025 · Hearing held
Your members of Congress
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What it does
The bill lets the Small Business Administration lend money for business software. Small businesses can buy accounting, payroll, HR, sales, and inventory software. They can also buy cloud computing services and AI tools. The bill clarifies that past loans for these purposes were already allowed.
Who it affects
Small businesses can now borrow federal money to buy software more easily. Software companies may sell more to small businesses. Banks that make these loans may see more demand.
One thing to notice
The federal government now backs AI tools for small business. More small businesses may shift to federal loans to pay for software.
From the analysis of the bill text, linked under Primary records below.
Where it stands
4 cosponsors: 3 Democrats, 1 Republicans.
- Jan 29, 2025 — Introduced · Congress.gov: “Introduced in Senate”
- Jan 29, 2025 — Referred to Senate Committee on Small Business and Entrepreneurship · Congress.gov: “Read twice and referred to the Committee on Small Business and Entrepreneurship”
- May 21, 2025 — Hearing held · Congress.gov: “Committee on Small Business and Entrepreneurship. Hearings held”
Dates and quoted wording are Congress.gov's action record; the timeline shows status changes, not every procedural step.
Money around this bill
1 groups reported lobbying about this bill. They filed 2 reports from Dec 2025 to Jun 2026.
Those reports show $46,000 in lobbying spending. Each report lists about 12 bills. So that money was not all for this bill.
More groups named this bill than 0% of bills with any report.
Todd Young, who sponsored the bill, received $695,220 from PACs for the 2026 election.
- National Small Business Association — $46,000 in 2 reports
Lobbying is legal. These reports show who lobbied about this bill, not what changed.
Words to know
- Small Business Administration — A federal agency that helps small businesses grow and get loans.
- cloud computing services — Software and storage that a company rents online instead of buying itself.
- AI tools — Software that uses artificial intelligence to help run a business.
- lobbying — Trying to influence lawmakers about a bill. Companies and groups pay people to do this.
- PACs — Groups that collect money and give it to candidates for office.
- sponsored — To sponsor a bill is to introduce it in Congress and put your name on it.
How this was measured
Analysis — Quorum's AI read the bill text published by Congress.gov (1,288 characters) on Aug 24, 2026. Section numbers in the findings refer to that text, linked below; transparency and hidden-provision scores are compared against the median of 14,206 analysed bills.
Status and sponsors — Congress.gov's bill record — actions, committee referrals and cosponsors — loaded nightly. The timeline shows status changes, not every procedural action.
Money — Senate Lobbying Disclosure Act filings whose specific-issue field names this bill for quarters ending Dec 2025 to Jun 2026. A filing's amount is reported whole beside the median number of bills a filing names; it is never divided across them. PAC receipts are FEC-reported contributions to the sponsor's candidate committee in the 2026 cycle.
As of — lobbying records through Jul 20, 2026 · page rendered 2026-09-17.
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