The Bill
Small businesses may now be able to secure federally-backed loans to cover the costs of software, cloud computing, and AI-powered business tools. Rep. Derek Schmidt (R-KS-2) voted yes on Wednesday, June 24 on the Small Business Technological Advancement Act. The House passed the measure with strong bipartisan support.
Right now, the SBA's 7(a) loan program, which is the agency's primary small business lending tool, doesn't explicitly cover software or digital services. This bill would change that, letting small businesses use those loans to pay for tools that handle payroll, accounting, inventory, sales, and other day-to-day operations. That includes software powered by artificial intelligence.
The bill was introduced in February 2025 by Rep. Mark Alford (R-MO-4) and cleared the House Small Business Committee 23-0 before reaching the floor.
The Vote Breakdown
The final tally: 205 Republicans voted yes, four voted no; on the Democratic side, 208 members voted yes, zero voted no. The bill passed under a procedure requiring a two-thirds majority.
Schmidt voted with his party. He has missed five votes this Congress.
The bill now moves to the Senate, where an identical companion bill, S.305, was also introduced in the 119th Congress.
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