The Small Business Technological Advancement Act (S. 2330) aims to update the Small Business Administration’s 7(a) loan program with the ability to utilize more digital tools. The short legislative act is outlined as follows:
“The Small Business Act (15 U.S.C. 636(a)) is amended by adding at the end the following: “(38) BUSINESS SOFTWARE OR CLOUD COMPUTING.—The Administration may provide loans under this subsection to finance, in whole or in part, business software or cloud computing services that facilitates business operations, product or service delivery, the processing, payment, or tracking of payroll expenses, human resources, sales and billing functions, or accounting or tracking of supplies, inventory, records and expenses.”
The bill has bipartisan support, helping to boost its chance of being signed into law. The legislation is being introduced by Senators Todd Young (R-IN), Jackie Rosen (D-NV), Ted Budd (R-NC), and Jeanne Shaheen (D-NH).
The Financial Technology Association (FTA) has endorsed the legislation, issuing the following statement:
“Financial technology supports the full lifecycle of a small business, from providing affordable capital to start a company to simplifying expenses, accounting, and payroll. We applaud Senators Young, Rosen, Budd, and Shaheen for championing this commonsense legislation that will help put the digital tools for success in the hands of more small business owners,” said Penny Lee, President and Chief Executive of the FTA.
The Fintech group noted that today 84% of small business owners are using digital financial tools to help manage their businesses including financial services.