Young, Colleagues Introduce Bipartisan Legislation to Help Small Businesses Adopt Digital Tools
WASHINGTON – Today, U.S. Senators Todd Young (R-Ind.), Jacky Rosen (D-Nev.), Ted Budd (R-N.C.), and Jeanne Shaheen (D-N.H.) introduced bipartisan legislation to help small business owners integrate digital tools into their businesses. The Small Business Technological Advancement Actwould clarify that small businesses can utilize the Small Business Administration’s (SBA) 7(a) loan program to finance technology that supports daily operations, including inventory management, product delivery, and accounting systems.
“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,” said Senator Young. “Our bipartisan bill would mitigate these economic barriers, facilitating the adoption of digital tools by small businessesin Indiana and across the country.”
“Small businesses are the heart of Nevada’s economy, and I’ll continue doing everything I can to help them thrive,” said Senator Rosen. “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.”
“Allowing job creators to use 7(a) loans for digital business tools is a common-sense way to help small businesses compete in the 21st century economy. Thanks to Senator Young for proposing this bill,” said Senator Budd.
“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,” said Senator Shaheen. “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.”
The last few years have seen an accelerated digital transformation among small businesses, pushing the adoption of software for business continuity, customer engagement, and remote work support. The Small Business Technological Advancement Act would help small businesses continue to bridge this technological gap by amending the Small Business Act to clarify that 7(a) loan borrowers can 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.
The legislative text can be found here.