The Small Business Technological Advancement Act Seeks to Refresh the SBA Loan Program, Receives Endorsement from Fintech Association

The Small Business Technological Advancement Act (S. 2330) is set to revolutionize the Small Business Administration’s 7(a) loan program by introducing the use of digital tools. This legislation aims to provide small businesses with more options for utilizing digital software and cloud computing services to enhance their operations.

The proposed amendment to the Small Business Act will allow the administration to offer loans to finance various digital tools that facilitate business operations, such as business software and cloud computing services. These tools can improve functions like product or service delivery, processing and tracking of payroll expenses, human resources, sales and billing, as well as accounting and inventory management.

The legislation has received bipartisan support, increasing its chances of becoming law. Senators Todd Young (R-IN), Jackie Rosen (D-NV), Ted Budd (R-NC), and Jeanne Shaheen (D-NH) are leading the initiative.

The Financial Technology Association (FTA) has thrown its weight behind the proposed legislation, endorsing the initiative. Penny Lee, President and Chief Executive of the FTA, expressed her support for the bill, emphasizing the important role digital tools play in supporting small businesses. Lee believes that the legislation will provide more small business owners with access to the digital tools they need for success.

According to the FTA, a significant proportion of small business owners, around 84%, already use digital financial tools to manage their businesses effectively. By expanding access to digital tools through this legislation, more small businesses can benefit from the advantages they offer, such as improved efficiency and streamlined processes.

The Small Business Technological Advancement Act (S. 2330) has the potential to empower small businesses by equipping them with the necessary digital tools to thrive in the modern business landscape. With bipartisan support and the endorsement of the FTA, this legislation is well-positioned to make a positive impact on small businesses across the country.

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