SBA Touts Growth, Capital Programs, a Bill on AI Training, Permit Process Changes

Hey everybody, it's Gene Marks, and welcome back to another episode of the weekly Paychex Week in Review. This is our Paychex Thrive Podcast where we cover a few items in the news that impacts your business and mine, and we talk a little bit about it, right?

Now, first of all, before we get started, imagine if there were two of you managing your business. Think about how much more you could achieve. mean, all that may, of course, not be possible. There is a way to lighten the load. That's where Paychex comes in, of course. They've got the tools and expertise to handle the day-to-day essentials from payroll to HR and employee benefits.

To see how Paychex can make a difference, please visit us. Go to paychex.com/meet-paychex. That's p-a-y-c-h-e-x.com forward slash m-e-e-t p-a-y-c-h-e-x. You can also find the link in the show notes below.

This episode of the Week in Review, I'd like this to be an all-SBA episode, all about the Small Business Administration, only because within the past week, there were not one, two, or three, but four news items that came out related to the Small Business Administration. And honestly, what goes on with the Small Business Administration does impact both you and me.

So, the first report comes from SmallBizTrends (dot-com). They reported that the Small Business Administration or the SBA reported record growth for small businesses in 2025 amid a reversal of policies from the past. The article highlights the U.S. Small Business Administration's 2025 annual report showing historical growth for U.S. small businesses. In fiscal 2025, the SBA delivered over $100 billion in capital access, including a record $45 billion in 7(a) and 504 loans and $53 billion in their SBIC program, that's their Small Business Investment something credit program, but their SBIC program, while reducing workforce size and cutting $300 million in expenses.

It also emphasized regulatory forms, fraud prevention measures, and initiatives like the Made in America manufacturing initiative to support domestic supply chains. Veteran and rural entrepreneur support is expanded. Small business optimism is reported above its 52-year average as owners navigate these policy changes.

So, the SBA – banner year in making capital and other programs available to small businesses.

The next bit of news comes from the SBA itself. Their working capital pilot program, they announced, has delivered $150 million in support to U.S. manufacturing. The Small Business Administration 7(a) Working Capital Pilot program surpassed $150 million in new lending to small manufacturers. Most of these approvals – more than $125 million – have occurred since the current administration took office, reflecting strong demand among capital-intensive manufacturers.

SBA Administrator Kelly Loeffler says the program helped firms reshore supply chains, hire workers, and expand operations, aligning with the broader economic goals of restoring U.S. industrial policy.

The working capital program complements their 7(a) and 504 loan programs with asset-based and transaction-based financing options. Just be aware, this provides working capital in lieu of using credit cards to finance your business if you qualify. The interest rates are still higher than the usual 7(a) or 504 loan interest rates – I have clients that have gotten this – but they're certainly lower than what credit cards exchange. So, there's $150 million was delivered this year under this working capital program.

The third bit of news comes from dynamicbusiness.com. It reported on a press release from U.S. senators, a few U.S. senators, who proposed expanding the SBA's support of AI for small businesses. Bipartisan U.S. senators introduced the AI for Mainstream Act, aiming to expand the Small Business Administration's support for artificial intelligence among small businesses.

The legislation would mandate the SBA – through its Small Business Development Center's network – provide free AI training, guidance, and implementation assistance nationwide. The goal is to help smaller firms adopt AI tools for operational efficiency, cybersecurity, regulatory compliance, and strategic planning – areas where larger firms often have an advantage over smaller businesses.

The bill builds on existing programs like the AIU and has strong bipartisan support with a companion measure already passed by the House. So, already not officially passed, it looks likely it will pass in the Senate and onto the president's desk. And it kind of is an issue, I don't see how that could really have any opposition.

So, look for more support coming from the SBA to help your business get trained and prepare for the onslaught of AI that is already starting.

Finally, the SBA has announced that it's now offering new options for bypassing permit delays. Their official page outlines a new option allowing disaster loan borrowers to bypass state or local permitting delays that can stall rebuilding after a federal disaster declaration. Under the updated rules, if a borrower has applied for a local permit and not received approval within 60 days, they may self-certify compliance with applicable building codes and safety standards to proceed with repairs and construction.

The process involves contractor verification and uploading signed forms via the SBA portal, helping speed recovery and reducing red tape that previously prevented disaster recipients from using approved funds.

So, let me quickly recap. The SBA announcing a banner year where we're $100 billion in capital access, $150 million under its working capital program for manufacturers. There is a new bill that will likely be signed that will provide more resources from the SBA to support businesses as they're going after AI tools. And finally, if you're in a disaster area, the SBA is now allowing you to self-certify yourself if you are not getting a permitting, the permits in time, so you can move forward with your construction.

All that news came from the SBA, the Small Business Administration, in just the past week or two, and I want to make sure that you're getting that, as well, so that you and your business can take advantage of it.

My name is Gene Marks, and you have been watching or listening to this week's episode of the Paychex Thrive Week in Review.

Again, if you need any help from Paychex with your payroll or your HR, a lot of compliance stuff out there, by all means, please consider going to paychex.com/meetpaychex. And, also, if you'd like to sign up for a Thrive newsletter, go to paychex.com/thrive and you can get advice and tips and help and link to back episodes of this podcast.

Again, thanks so much for watching or listening. We'll be back with you next week with another issue of the or another episode of the Paychex Thrive Week in Review. We'll see you then.

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I'm your host, Gene Marks, and thanks for joining us.

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