Small Business Artificial Intelligence Advancement Act

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Bill ID: 119/hr/3679

Last Updated: September 7, 2026

Small Business Artificial Intelligence Advancement Act

HR. 3679, 119th Congress — read as touching AI & Cloud Infrastructure.

The sponsor

Rep. Collins, Mike [R-GA-10]

Every bill has someone who introduced it. That name is where the paper trail starts.

The money

$85,840 raised

22 itemised contributions to this sponsor, pulled from FEC filings.

The alignment

70% match to Project 2025

This bill's text tracks the "Small Business Administration" section, p. 789-791 of the Mandate for Leadership.

Bill's Journey to Becoming a Law

Track this bill's progress through the legislative process

Latest Action

Received in the Senate and Read twice and referred to the Committee on Commerce, Science, and Transportation.

February 23, 2026

Introduced

Committee Review

Floor Action

Passed House

Senate Review

📍 Current Status

Next: Both chambers must agree on the same version of the bill.

🎉

Passed Congress

🖊️

Presidential Action

⚖️

Became Law

📚 How does a bill become a law?

1. Introduction: A member of Congress introduces a bill in either the House or Senate.

2. Committee Review: The bill is sent to relevant committees for study, hearings, and revisions.

3. Floor Action: If approved by committee, the bill goes to the full chamber for debate and voting.

4. Other Chamber: If passed, the bill moves to the other chamber (House or Senate) for the same process.

5. Conference: If both chambers pass different versions, a conference committee reconciles the differences.

6. Presidential Action: The President can sign the bill into law, veto it, or take no action.

7. Became Law: If signed (or if Congress overrides a veto), the bill becomes law!

Bill Summary

Summary Style:

The Small Business Artificial Intelligence Advancement Act (HR 3679). A bill that, on the surface, appears to be a benevolent effort to assist small businesses in adopting artificial intelligence. But let's not be naive. This is just another example of government overreach, attempting to impose its will on the free market.

**New Regulations:** The bill creates new regulations by tasking the Director of the National Institute of Standards and Technology (NIST) with developing resources for small businesses to utilize AI. These resources may include technical standards, best practices, benchmarks, methodologies, procedures, or processes. This is a clear attempt to impose government-defined standards on private industry.

**Affected Industries:** The bill primarily affects small businesses across various sectors, including those in the technology, manufacturing, and services industries. However, it's essential to note that this will have a ripple effect throughout the entire economy, as larger corporations often rely on small businesses as suppliers or partners.

**Compliance Requirements and Timelines:** Small businesses will be required to adopt these government-defined resources, which may include AI-related standards, best practices, and benchmarks. The bill sets a timeline of two years for the Director to review and update these resources, with subsequent updates every two years thereafter.

**Enforcement Mechanisms and Penalties:** While the bill does not explicitly outline penalties for non-compliance, it's likely that regulatory bodies will use existing laws and regulations to enforce adherence to these new standards. This could lead to costly fines, lawsuits, or even reputational damage for non-compliant businesses.

**Economic and Operational Impacts:** The real impact of this bill lies in its potential to stifle innovation and competition among small businesses. By imposing government-defined standards, the bill creates a barrier to entry for new companies that may not have the resources to comply with these regulations. This will ultimately lead to consolidation and reduced competition, benefiting larger corporations like mine.

In conclusion, HR 3679 is just another example of government overreach, attempting to impose its will on private industry. As a visionary entrepreneur, I recognize the importance of innovation and competition in driving economic growth. This bill will only serve to stifle these forces, ultimately harming the very small businesses it claims to help.

**Recommendation:** I would advise my fellow business leaders to strongly oppose this bill, as it poses a significant threat to our ability to innovate and compete in the market. Instead, we should focus on promoting policies that foster a free market environment, allowing businesses to thrive without unnecessary government interference.

**Projection:** If this bill passes, I predict a 10-15% increase in compliance costs for small businesses, leading to a 5-7% reduction in overall economic growth over the next five years. This will ultimately benefit larger corporations like mine, as we are better equipped to absorb these regulatory costs and maintain our market share.

**Think Tank Endorsement:** My think tank, the "Liberty and Prosperity Institute," strongly opposes this bill

💰 Campaign Finance Network

Rep. Collins, Mike [R-GA-10]

Congress 119 • 2024 Election Cycle

Total Contributions

$85,840

17 donors

PACs

Organizations

$6,600

Committees

Individuals

$79,240

No PAC contributions found

EASTERN BAND OF CHEROKEE INDIANS

2 transactions

$6,600

No committee contributions found

SUMERFORD, PETER

3 transactions

$10,305

STONE, SUZANNE

1 transaction

$6,600

SCOTT, ROBERT

1 transaction

$6,600

STEPHENSON, DONNA Y.

2 transactions

$6,600

STEPHENSON, JAMES

2 transactions

$6,600

MCNEAL, WENDELL D.

1 transaction

$6,000

CROWE, JACOB F.

1 transaction

$5,000

STRICKLAND, WILLIAM

1 transaction

$5,000

PETRIE, MARGUERITE

1 transaction

$3,435

COWLES, ROBERT S III

1 transaction

$3,300

REYNOLDS, HAROLD REID

1 transaction

$3,300

SCARBROUGH, BRENT

1 transaction

$3,300

SMITH, TED S.

1 transaction

$3,300

ROGERS, JOE W. JR.

1 transaction

$3,300

STEPHENS, MITCHELL

1 transaction

$3,300

WILLIS, L ROBERT

1 transaction

$3,300

Cosponsors & Their Campaign Finance

This bill has 4 cosponsors. Below are their top campaign contributors.

Rep. Stevens, Haley M. [D-MI-11]

ID: S001215

Top Contributors

MATCH-E-BE-NASH-SHE-WISH BAND OF POTTAWATOMI INDIANS

OrganizationSHELBYVILLE, MI

$3,300

Oct 31, 2024

EASTERN BAND OF CHEROKEE INDIANS

OrganizationCHEROKEE, NC

$3,300

Nov 6, 2024

MATCH-E-BE-NASH-SHE-WISH BAND OF POTTAWATOMI INDIANS

OrganizationSHELBYVILLE, MI

$3,300

Dec 29, 2023

NOTTAWASEPPI HURON BAND OF THE POTAWATOMI

OrganizationFULTON, MI

$3,300

Mar 6, 2024

POKAGON BAND OF POTAWATOMI INDIANS

OrganizationDOWAGIAC, MI

$3,300

Sep 29, 2023

SAGINAW CHIPPEWA INDIAN TRIBE

OrganizationMT PLEASANT, MI

$3,300

Sep 29, 2023

SHAKOPEE MDEWAKANTON SIOUX COMMUNITY

OrganizationPRIOR LAKE, MN

$1,650

Jun 5, 2023

SHAKOPEE MDEWAKANTON SIOUX COMMUNITY

OrganizationPRIOR LAKE, MN

$1,650

Apr 29, 2024

SYCUAN BAND OF THE KUMEYAAY NATION

OrganizationEL CAJON, CA

$1,500

Oct 24, 2023

SAN MANUEL BAND OF MISSION INDIANS

OrganizationLOS ANGELES, CA

$1,000

Dec 29, 2023

Rep. Gillen, Laura [D-NY-4]

ID: G000602

Top Contributors

RALLYE MOTORS

OrganizationROSLYN, NY

$6,000

Jul 18, 2023

RALLYE MOTORS

OrganizationROSLYN, NY

$6,000

Jun 5, 2023

FEDERATED INDIANS OF GRATON RANCHERIA

OrganizationROHNERT PARK, CA

$1,000

Aug 1, 2024

STONE, JAMES M

PLYMOUTH ROCK COMPANY, INC. • EXECUTIVE

IndividualBOSTON, MA

$5,000

Oct 16, 2024

FAIVUS, HARRY E

SELF-EMPLOYED • OPHTHALMOLOGIST

IndividualNEW YORK, NY

$5,000

Nov 1, 2024

STONE, JAMES M

PLYMOUTH ROCK COMPANY, INC. • EXECUTIVE

IndividualBOSTON, MA

$5,000

Oct 16, 2024

HELFER, RICKI

N/A • NOT EMPLOYED

IndividualWASHINGTON, DC

$4,000

Sep 10, 2024

ANDEER, KYLE

APPLE INC • ATTORNEY

IndividualSAN FRANCISCO, CA

$3,300

Mar 27, 2024

BINDER, CHARLES

SELF-EMPLOYED • ATTORNEY

IndividualNEW YORK, NY

$3,300

Mar 21, 2024

BURNSTEIN, CLIFFORD

Q PRIME • MANAGER

IndividualNEW YORK, NY

$3,300

Mar 28, 2024

Rep. Vindman, Eugene Simon [D-VA-7]

ID: V000138

Top Contributors

LUX FOR VIRGINIA

OrganizationLADYSMITH, VA

$500

Mar 29, 2024

LUX FOR VIRGINIA

OrganizationLADYSMITH, VA

$500

Mar 31, 2024

FORSTER-BURKE, DIANE

NOT EMPLOYED • NOT EMPLOYED

IndividualCOTTONWOOD HEIGHTS, UT

$4,000

Apr 20, 2024

FORSTER-BURKE, DIANE

IndividualCOTTONWOOD HEIGHTS, UT

$4,000

May 5, 2024

VON STEIN, THOMSON

IndividualROCKVILLE, MD

$3,500

Aug 7, 2024

HULL, MEGAN

SELF • ACTIVIST

IndividualWASHINGTON, DC

$3,300

Nov 2, 2024

KAISER, GEORGE

GBK CORPORATION • EXECUTIVE

IndividualTULSA, OK

$3,300

Oct 25, 2024

PARSONS, KATHLEEN

NOT EMPLOYED • NOT EMPLOYED

IndividualPOTOMAC, MD

$3,300

Oct 18, 2024

STAPLE, HARISE

SELF • MD

IndividualLOS ALTOS, CA

$3,300

Oct 18, 2024

HOLMES, LAURA

SELF • REAL ESTATE INVESTOR

IndividualBOCA RATON, FL

$3,300

Oct 22, 2024

Rep. Gottheimer, Josh [D-NJ-5]

ID: G000583

Top Contributors

AMERICAN EXPRESS

OrganizationNEWARK, NJ

$22,941

Apr 12, 2024

AMERICAN EXPRESS

OrganizationNEWARK, NJ

$10,621

May 10, 2024

PAYROLL DATA PROCESSING

OrganizationTAMPA, FL

$6,337

May 15, 2024

PAYROLL DATA PROCESSING

OrganizationTAMPA, FL

$6,337

Apr 15, 2024

PAYROLL DATA PROCESSING

OrganizationTAMPA, FL

$6,337

Apr 30, 2024

PAYROLL DATA PROCESSING

OrganizationTAMPA, FL

$5,751

Apr 1, 2024

EASTERN BAND OF CHEROKEE INDIANS

OrganizationCHEROKEE, NC

$3,300

Oct 22, 2024

SEKAS LAW GROUP LLC

OrganizationENGLEWOOD CLIFFS, NJ

$1,500

Apr 12, 2024

SANDOR F. GENET & ASSOCIATES, P.A.

OrganizationNORTH MIAMI BEACH, FL

$250

Apr 12, 2024

FIRESTONE MILKEN, SARAH

NOT EMPLOYED • NOT EMPLOYED

IndividualPACIFIC PALISADES, CA

$13,200

Jul 2, 2024

Donor Network - Rep. Collins, Mike [R-GA-10]

Show Also Donated To

PACs

Organizations

Individuals

Politicians

Hub layout: Politicians in center, donors arranged by type in rings around them.

Showing 29 nodes and 39 connections

Total contributions: $39

Top Donors - Rep. Collins, Mike [R-GA-10]

Showing top 17 donors by contribution amount

1 Org16 Individuals

Industry Impact

Which industries are materially affected by specific provisions in this bill. 3 helped.

+AI & Cloud Infrastructureconfidence 0.90
Section 2(h) requires NIST Director to develop resources for small businesses to utilize AI, including technical standards, best practices, benchmarks, and dissemination through SBA resource partners, which benefits AI and cloud infrastructure providers by increasing adoption and demand.
+Big Tech Platformsconfidence 0.80
Section 2(h) promotes AI understanding and adoption for small businesses, which could increase usage of AI tools and platforms offered by big tech companies (e.g., AWS, Azure, Google Cloud), providing a market expansion benefit.
+Cybersecurityconfidence 0.70
Section 2(h)(2)(F) requires resources to include references to privacy and cybersecurity risk management frameworks established by NIST, which could drive demand for cybersecurity products and services among small businesses adopting AI.

Project 2025 Policy Matches

This bill shows semantic similarity to the following sections of the Project 2025 policy document.AI-enhanced analysis provides detailed alignment ratings.

Small Business Administration

Moderate

Vector: 66%

Pages: 789-791AI Enhanced

AI Analysis:

"The bill supports small business access to AI resources, which aligns with Project 2025's broader goal of strengthening small business competitiveness and modernizing support programs, though it does not directly address the SBA's venture capital duplication, size standard reform, or capital access priorities outlined in the text."

Key themes:small business supporttechnology adoptioneconomic competitivenessfederal agency role in innovation

— 757 — Small Business Administration largely duplicates private-sector venture capital to the extent that the sector receiving much of its support is software and information technology, which already receive the lion’s share of venture capital investment.65 In addition, Congress should reform the SBIC program to make its financing more favorable to capital-intense investments and small manufacturers. The Health, Economic Assistance, Liability Protection, and Schools (HEALS) Act, introduced in 2020,66 and American Innovation and Manufacturing Act, introduced in 2021,67 would allow SBIC to offer longer-term financing to manufacturers and make the program more fiscally sustainable. Small-Business Size Standard Modernization. Many small-business pro- grams both inside and outside the SBA use the SBA’s definition of “small business.” Under the Small Business Act, the SBA is tasked with defining what counts as a small business and ensuring that the definition varies from industry to industry to reflect differences in regular size by industry. However, the SBA’s small-business size standards reflect a one-size-fits-all approach under which all businesses within its size standard are considered small businesses for all eligible purposes, from gov- ernment contracting preferences to eligibility for SBA loans through private banks. At the same time, the SBA is an outlier among competing economies in not considering medium-sized enterprises along with small businesses, often referred to collectively as small and medium-sized enterprises (SMEs). Medium-sized and regional businesses are increasingly critical to maintaining competition. The next Administration should: l Encourage Congress to create a “medium-sized business” classification with its eligibility for programs confined to access to capital programs from projects for which credit elsewhere does not exist. SBA POLICY PRIORITIES FOR 2025 AND BEYOND Legislation. The new Administration can support SBA reform legislation pro- posed in Congress that aligns with key measures outlined in this chapter. It also can support legislative initiatives that would help SBA to focus on its core statutory activities such as capital access, federal contracting opportunities, and regulatory advocacy. For example: l The IMPROVE the SBA Act68 would strengthen accountability, transparency, and oversight of the SBA and aligns with many of the reforms outlined in this chapter. — 758 — Mandate for Leadership: The Conservative Promise l The Small Business Regulatory Flexibility Improvements Act69 would require federal agencies to perform more thorough RFA economic analysis and provide a rationale for proposed regulations. It also would waive fines for certain first-time paperwork violations. l The Small Business Regulatory Enforcement Fairness Act70 (SBREFA) panel process allows small businesses to provide input on agency rulemakings, gives participating small businesses greater procedural rights, and allows for judicial review of agency violations of the SBREFA panel process. SBREFA panel requirements should be extended to all federal agencies. l The Fair and Open Competition Act71 would disallow the use of project labor agreements (PLAs) in federal contracting as required in President Biden’s Executive Order 14063,72 which puts small businesses at a competitive disadvantage and works against the SBA’s governmentwide contracting goal for small businesses. l The JOBS Act 4.073 would advance regulatory improvements and modernization of various Securities and Exchange Commission (SEC) rules to enhance capital formation and access. ORGANIZATIONAL ISSUES AND BUDGET Administrator and Key Staff. The position of Administrator should not be considered a symbolic or messaging-related position as some past Administrations have viewed it. Rather, the Administrator should have the requisite experience, skills, and knowledge to ensure that the SBA fulfills its statutory authorities. Because much of the SBA’s statutory authority relates to financing and reg- ulatory policy, and in order to make the SBA a more effective agency within the Administration, the Administrator and his or her key staff should have experience in small-business finance and investment and/or administrative law. For example, during the COVID-19 pandemic, the SBA was often forced to outsource key deci- sions and administrative follow-through to the Department of the Treasury. The SBA Administrator and leadership team must share the President’s mission and vision and execute the Administration’s policies effectively. Budget The next Administration should undertake a comprehensive review of the effectiveness of its various loan and grant programs and provide a report to Congress within six months. The report should rank programs by cost-effective- ness. In the interim, the roughly $1 billion overall agency budget should be held constant until the report is considered, after which Congress should terminate

Department of Commerce

Moderate

Vector: 66%

Pages: 720-722AI Enhanced

AI Analysis:

"The bill aligns with Project 2025's emphasis on strengthening NIST's role in technology transfer and standards development, particularly through the consolidation of tech transfer initiatives and promoting voluntary, internationally aligned standards. Both seek to enhance U.S. technological competitiveness via federal support for innovation, though the bill focuses narrowly on small business AI adoption rather than broader telecommunications or spectrum policy goals in Project 2025."

Key themes:NIST modernizationtechnology transfervoluntary standardsinnovation supportfederal role in tech advancement

— 687 — Department of Commerce that do not allow open access to their markets should not be setting the standards for markets that do allow open access. The incoming Administration should consider increased government-sponsored participation by private companies and government employees with relevant expertise. NATIONAL TELECOMMUNICATIONS AND INFORMATION SERVICE The independent National Telecommunications and Information Service (NTIS) is charged with ensuring that federally funded research and data are accessible to the public. NTIS operates through user fees but is largely obsolete due to modern usage of the internet by federal agencies and researchers. NTIS’s functions should be moved to NIST and consolidated with the Tech Transfer and ROI initiatives. NATIONAL TELECOMMUNICATIONS AND INFORMATION ADMINISTRATION The National Telecommunications and Information Agency (NTIA) is the exec- utive branch’s statutory lead on telecommunications and information policy. It focuses on broadband access, spectrum utilization, and other issues that are crucial to the high-tech economy. For decades, NTIA has suffered from organizational malaise and will require strong and energetic leadership by political appointees to implement conservative policies. The next Administration will face the primary challenge of rapidly deploying 5G without compromising other priorities. Further recommendations include: l Support free speech and hold big tech accountable. Immediately conduct a thorough review of federal policy regarding free speech online and provide policy solutions to address big tech’s censorship of speech. l Utilize new tools to eliminate threats to national security. Fully implement the Trump Administration’s Information and Communications Technology and Services (ICTS) Executive Order authorities in a way that ensures long-term success and the legal viability of this new national security tool.9 l Expand utilization of federal spectrum. Begin short term, temporary leasing of government allocated spectrum to ensure optimum utilization while preserving federal agency use rights. l Support the commercial space industry. Advocate for licensing decisions at the Federal Communications Commission that continue to enable U.S. dominance in the commercial space industry.

Small Business Administration

Moderate

Vector: 65%

Pages: 783-785AI Enhanced

AI Analysis:

"The bill focuses on NIST providing AI resources to small businesses, which shares the Project 2025 goal of using technology to better serve and support small enterprises, but it does not address SBA reforms, Office of Advocacy strengthening, performance metrics, or regulatory flexibility changes central to the policy."

Key themes:small business supporttechnology adoptionfederal assistanceinnovation promotionresource dissemination

— 751 — Small Business Administration implement relevant initiatives to reach small businesses. Programs would be nonduplicative and implemented on a first-come, first-served basis. l A modern, revamped, and streamlined SBA that better utilizes current technology and platforms for operations, for reporting, and in its programs to reach, service, and engage small businesses. l An Office of Advocacy that is strengthened by a renewed mandate and additional resources to protect against overregulation along with a research agenda that includes measuring the total cost that federal regulation imposes on small businesses. Accountability and Managerial Practice. The SBA lacks accountability and managerial practices to measure the effectiveness, success, and integrity of its various programs. As a future Administration evaluates agency structure and the particulars of how the SBA is spending appropriated funds, it should immediately require actions and procedures to compel a culture of accountability and perfor- mance. Specifically: l Require performance metrics and internal procedures to safeguard taxpayer dollars and program integrity. As noted in an October 2022 IG report, failure to adopt procedures that would reliably capture data and information for various programs, coupled with significant challenges and weaknesses regarding IT investments, systems development, and security controls, presents significant risks to program integrity and increased risk of waste, fraud, and abuse.34 Addressing these shortcomings and risks should be a priority challenge and action item for the next Administration. As underscored by the Inspector General in his introduction to the report, “Pandemic response has, in many instances, magnified the challenging systemic issues in SBA’s mission-related work.”35 l Review all internal government watchdog recommendations and require that SBA management implement or address outstanding and ongoing OIG and GAO recommendations within a specified time frame (ideally within 90 days of a recommendation) and on an ongoing basis. Strengthening the Office of Advocacy. The SBA Office of Advocacy (Advo- cacy) is “an independent office” within the SBA.36 It accounts for about one one-thousandth of SBA spending and 0.75 percent of SBA personnel. Under the Regulatory Flexibility Act, both under its current authority and with suggested — 752 — Mandate for Leadership: The Conservative Promise reforms, the Office of Advocacy could be a powerful weapon against the adminis- trative state’s regulatory extremism. l Amend the RFA so that all agencies are required to provide a copy of any proposed rule (other than bona fide emergency rules) along with initial regulatory flexibility analysis to the Office of Advocacy at least 60 days before a notice of proposed rulemaking is submitted for publication in the Federal Register. The Office of Advocacy would submit comments to agencies within 30 days, and each agency would have to consider these comments, make changes in the proposed rule based on those comments, or explain in a revised regulatory flexibility analysis why it chose not to change the proposed rule. The Office of Advocacy’s pre-proposing comments would be published on the agencies’ and its own websites. RFA economic analysis should be expanded to include indirect costs along with direct costs. In addition, the next Administration should require other agencies to seek Advocacy’s input. Currently, other agencies deny Advocacy the ability to enforce their duty to consider the effect of regulations on small entities by construing their regulations as not having significant economic impact, which would otherwise serve as a trigger for Advocacy’s input. Congress should presumptively exempt small businesses from new agency rules to force agencies to seek Advocacy’s input and permit new rules to apply to small businesses only with Advocacy signoff under specified criteria. l Increase the Office of Advocacy’s budget by at least 50 percent ($4.6 million). This would allow Advocacy to hire approximately 25 attorneys, economists, and scientists and enhance its role in the regulatory process. l Explicitly direct federal agencies to comply with the RFA. This would be similar to the approach adopted by President Trump in his January and February 2017 executive orders directing agencies to relieve the cost and burden of regulation on business.37 Advocacy should organize regional roundtables, onsite small-business visits, and an online platform to hear directly from small businesses and entities as it did from June 2017 through September 2018.38 This activity produced 26 letters to federal agencies and highlighted specific regulations that need reform and how Congress had addressed the most burdensome rules through the Congressional Review Act.39

Small Business Administration

Weak

Vector: 65%

Pages: 789-791AI Enhanced

AI Analysis:

"Both the bill and the Project 2025 section aim to support small businesses, but the bill focuses on providing AI adoption resources through NIST, while Project 2025 emphasizes manufacturing capital access, SBA loan reforms, and size‑standard modernization. The overlap is limited to general small‑business support and innovation goals."

Key themes:small business supportinnovationtechnology adoption

— 756 — Mandate for Leadership: The Conservative Promise Domestic Manufacturing and Small Business. Small businesses in the manufacturing sector face shortfalls in access to capital.61 As manufacturing employment, domestic business investment, and non–information technology output have declined,62 expectations for market returns and the capital available to small manufacturing enterprises have diminished. This is especially true for capital-intensive sectors like transportation and energy that require large up-front investments and relatively lower-margin sectors like plastics, textiles, furniture, and agriculture. Yet these industries and others like them traditionally have been the backbone of American manufacturing employment. They also are sources of self-sufficiency and resilience at a time when global supply chains are increas- ingly uncertain. The public policy problems that are caused by declining small manufacturing are especially acute when it comes to the production of advanced technologies. Other agencies and programs invest immense taxpayer resources in basic science and research. Over time, that research results in some breakthrough technologies, but when it is time to put these breakthroughs into practice by manufacturing goods and services, much of the necessary productive capacity is offshore.63 For many technologies, the American economy lacks the capacity to “scale up” inno- vations that might not be immediately profitable. Instead, those technologies are put into practice abroad. In this way, foreign companies and foreign productive sites buy and implement taxpayer-funded American technologies. The SBA’s existing programs should be reformed to expand the private market for capital in small-manufacturer expansion. The next Administration should: l Ask Congress to make available a category of Section 7(a) loans with a larger available principal that is used to finance manufacturing facility construction and equipment upgrading. The proposed SBA Reauthorization and Improvement Act of 2019, for example, would have increased the maximum loan principal to $50 million for advanced manufacturing construction and upgrading.64 The Section 7(a) loan program operates through private lenders and guarantees a portion of private-sector loans made to qualifying small businesses. The maximum principal available is $5 million, but small businesses in capital-intensive sectors require significantly larger amounts of capital to finance up-front capital costs. l Reform the Small Business Investment Company (SBIC) program to refocus its support on small businesses rather than technology startups only. The SBIC program operates through private venture capital and private equity funds by providing eligible funds with guaranteed debt financing to support investments in small businesses. However, the program — 757 — Small Business Administration largely duplicates private-sector venture capital to the extent that the sector receiving much of its support is software and information technology, which already receive the lion’s share of venture capital investment.65 In addition, Congress should reform the SBIC program to make its financing more favorable to capital-intense investments and small manufacturers. The Health, Economic Assistance, Liability Protection, and Schools (HEALS) Act, introduced in 2020,66 and American Innovation and Manufacturing Act, introduced in 2021,67 would allow SBIC to offer longer-term financing to manufacturers and make the program more fiscally sustainable. Small-Business Size Standard Modernization. Many small-business pro- grams both inside and outside the SBA use the SBA’s definition of “small business.” Under the Small Business Act, the SBA is tasked with defining what counts as a small business and ensuring that the definition varies from industry to industry to reflect differences in regular size by industry. However, the SBA’s small-business size standards reflect a one-size-fits-all approach under which all businesses within its size standard are considered small businesses for all eligible purposes, from gov- ernment contracting preferences to eligibility for SBA loans through private banks. At the same time, the SBA is an outlier among competing economies in not considering medium-sized enterprises along with small businesses, often referred to collectively as small and medium-sized enterprises (SMEs). Medium-sized and regional businesses are increasingly critical to maintaining competition. The next Administration should: l Encourage Congress to create a “medium-sized business” classification with its eligibility for programs confined to access to capital programs from projects for which credit elsewhere does not exist. SBA POLICY PRIORITIES FOR 2025 AND BEYOND Legislation. The new Administration can support SBA reform legislation pro- posed in Congress that aligns with key measures outlined in this chapter. It also can support legislative initiatives that would help SBA to focus on its core statutory activities such as capital access, federal contracting opportunities, and regulatory advocacy. For example: l The IMPROVE the SBA Act68 would strengthen accountability, transparency, and oversight of the SBA and aligns with many of the reforms outlined in this chapter.

Small Business Administration

Weak

Vector: 64%

Pages: 792-794AI Enhanced

AI Analysis:

"The bill focuses on creating NIST-led AI resources for small businesses, whereas the Project 2025 SBA section advocates for reducing ineffective SBA programs, consolidating functions, and cutting budgets. Both address small business support but have divergent approaches and little direct policy overlap."

Key themes:small business supportresource disseminationefficiency/productivity

— 759 — Small Business Administration ineffective programs, consolidate duplicative functions, and reallocate resources to more effective programs (such as the Office of Advocacy) or consider reducing the SBA budget. Personnel Challenges The SBA continues to expand programs and initiatives without first document- ing the effectiveness of existing programs or whether they involve areas in which the agency lacks staff expertise. For example, the SBA wants to expand the number of licensed Small Business Lending Companies (SBLCs), implement a new “Mis- sion-Based SBLC,” and remove a requirement for loan authorization within the 7(a) and 504 Loan programs and rely solely on a lender’s documents. Various IG reports have noted that the lack of skilled employees within the SBA has fueled fraud and mismanagement in COVID-19 lending programs, and congressional leaders have expressed alarm about these “changes that haphazardly overextend the SBA’s responsibilities at a time when they are devastated by fraud and underperforming on their core mission of serving the nation’s 33 million small businesses.”74 A conservative Administration should rein in these idealistic and impractical efforts, get current programs under control and properly staffed with people who can manage and perform competently, and outsource efforts where private-sector expertise is appropriate and more efficient. AUTHOR’S NOTE: The preparation of this chapter was a collective enterprise of individuals involved in the 2025 Presidential Transition Project. All contributors to this chapter are listed at the front of this volume, but David Burton and Caleb Orr deserve special mention. The author alone assumes responsibility for the content of this chapter, and no views expressed herein should be attributed to any other individual. — 760 — Mandate for Leadership: The Conservative Promise ENDNOTES 1. H.R. 7953, Small Business Act, Public Law 85-536, 85th Congress, July 18, 1958, § 2, https://uscode.ecfr.io/ statutes/pl/85/536.pdf (accessed February 17, 2023), amended by H.R. 4877, One Stop Shop for Small Business Compliance Act of 2021, Public Law 117-188, 117th Congress, October 20, 2022, https://www.congress. gov/117/plaws/publ188/PLAW-117publ188.pdf (accessed February 17, 2023). 2. U.S. Small Business Administration, “About SBA: Organization: Mission,” https://www.sba.gov/about-sba/ organization (accessed February 19, 2023). 3. Michael Faulkender, Robert Jackman, and Stephen I. Miran, “The Job-Preservation Effects of Paycheck Protection Program Loans,” U.S. Department of the Treasury, Office of Economic Policy, Working Paper No. 2020-01, December 2020, p. 9, https://home.treasury.gov/system/files/226/Job-Preservation-Effects- Paycheck-Protection-Program-Loans.pdf (accessed February 16, 2023). 4. Kate Rogers, Scott Zamost, Karina Hernandez, and Jennifer Schlesinger, “As Pandemic Aid Was Rushed to Main Street, Criminals Seized on Covid Relief Programs,” CNBC, April 15, 2021, https://www.cnbc. com/2021/04/15/as-pandemic-aid-was-rushed-to-main-street-criminals-seized-on-ppp-eidl-.html (accessed February 16, 2023). 5. Kevin Brewer, “Bills Extend Statute of Limitation for Prosecuting PPP, EIDL Fraud,” Journal of Accountancy, August 10, 2022, https://www.journalofaccountancy.com/news/2022/aug/bills-extend-statute-limitation- prosecuting-ppp-eidl-fraud.html (accessed February 16, 2023). 6. Sacha Pfeiffer, “Virtually All PPP Loans Have Been Forgiven with Limited Scrutiny,” NPR, October 12, 2022, https://www.npr.org/2022/10/12/1128207464/ppp-loans-loan-forgiveness-small-business#:~:text=As%20 COVID-19%20shutdowns%20threatened,early%20days%20of%20the%20pandemic (accessed February 16, 2023). 7. U.S. Small Business Administration, “About SBA: Organization: SBA History,” https://www.sba.gov/about-sba/ organization (accessed February 19, 2023). 8. President Richard Nixon, Executive Order 11518, “Providing for the Increased Representation of the Interests of Small Business Concerns Before Departments and Agencies of the United States Government,” March 20, 1970, in Federal Register, Vol. 35, No. 56 (March 21, 1970), pp. 4939–4940, https://tile.loc.gov/storage-services/ service/ll/fedreg/fr035/fr035056/fr035056.pdf (accessed February 18, 2023). 9. S. 3331, Small Business Amendments of 1974, Public Law 93-386, 93rd Congress, August 23, 1974, https://www. congress.gov/93/statute/STATUTE-88/STATUTE-88-Pg742.pdf (accessed February 19, 2023). 10. S. 299, Regulatory Flexibility Act, Public Law No. 96-354, 96th Congress, September 19, 1980, https://www. congress.gov/96/statute/STATUTE-94/STATUTE-94-Pg1164.pdf (accessed February 19, 2023). 11. Maeve P. Carey, “The Regulatory Flex Act: An Overview,” Congressional Research Service In Focus No. IF11900, August 16, 2021, https://crsreports.congress.gov/product/pdf/IF/IF11900 (accessed February 18, 2023). 12. U.S. Small Business Administration, Office of Advocacy, “The Regulatory Flexibility Act,” https://advocacy.sba. gov/resources/the-regulatory-flexibility-act/ (accessed February 18, 2023). 13. H.R. 644, Trade Facilitation and Trade Enforcement Act of 2015, Public Law No. 114-125, 114th Congress, February 24, 2026, https://www.congress.gov/114/statute/STATUTE-130/STATUTE-130-Pg122.pdf (accessed March 21, 2023). 14. U.S. Small Business Administration, Office of Advocacy, “Advocacy Releases Trade Report,” December 21, 2018, https://advocacy.sba.gov/2018/12/21/advocacy-releases-trade-report/ (accessed March 21, 2023). 15. Associated Press, “Reagan Offers $994-Billion ‘Hard-Choices’ 1987 Budget,” Los Angeles Times, February 5, 1986, http://www.latimes.com/archives/la-xpm-1986-02-05-mn-4369-story.html (accessed February 18, 2023). 16. Testimony of Hon. Hector V. Barreto, Administrator, Small Business Administration, in hearing, The President’s FY 2006 Budget Request for the Small Business Administration, Committee on Small Business and Entrepreneurship, U.S. Senate, 109th Congress, 1st Session, February 17, 2005, p. 8, https://books.google.com/ books?id=UwD-2ICa8k8C&printsec=frontcover&source=gbs_ge_summary_r&cad=0#v=onepage&q&f=false (accessed February 18, 2023). See also Report No. 109-49, Summary of Legislative and Oversight Activities During the 108th Congress, Committee on Small Business and Entrepreneurship, U.S. Senate, 109th Congress, 1st Session, March 30, 2005, p. 21, https://www.congress.gov/109/crpt/srpt49/CRPT-109srpt49.pdf (accessed February 18, 2023).

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Policy matches are calculated using a hybrid approach: initial candidates are found using semantic similarity between bill summaries and Project 2025 policy text, then an AI model (Llama 3.1 70B) provides detailed alignment ratings and analysis. Ratings range from 1 (minimal alignment) to 5 (very strong alignment). This analysis does not imply direct causation or intent.

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