NEWS | NSBA Unveils Task Force, Congressional Recommendations and Initiatives to Protect Small Business in Age of AI

The NSBAi Task Force is focused on ensuring small businesses are protected and empowered in the rapid scale up of AI infrastructure and integration in the U.S.

This week, the National Small Business Association (NSBA) and its AI Task Force released a working set of policy recommendations aimed at ensuring small businesses are not left behind or inadvertently harmed as Congress continues shaping the nation’s artificial intelligence (AI) regulatory framework. The document, drafted by NSBA’s AI Task Force, outlines practical steps lawmakers can take to support innovation while safeguarding entrepreneurs navigating rapid technological change.

Strengthening Federal Support for Small-Business AI Adoption

NSBA is urging Congress to ensure agencies at the center of AI oversight, especially the National Institute of Standards and Technology (NIST) and the U.S. Small Business Administration (SBA), receive dedicated funding to help small firms integrate and safely deploy AI tools. As the recommendation notes, existing legislation like the Small Business Artificial Intelligence Training and Toolkit Act of 2024 acknowledges this need, but designated federal resources remain essential for widespread adoption.

Scaling Rules to Business Size

A major concern highlighted by NSBA and the AI Task Force is the risk of improperly scaled regulations that burden small businesses. The association is calling on Congress to explicitly account for business size when crafting rules for AI developers, warning that compliance-heavy frameworks could stifle the very innovation happening among small, nimble firms.

Clarifying Federal Loan Eligibility for AI Investments

The NSBAi Task Force is also urging lawmakers to confirm that AI-related expenses qualify under the popular SBA 7(a) loan program, a position already reflected in proposals such as the Small Business Technological Advancement Act. With more entrepreneurs looking to invest in AI tools for operations, customer service, cybersecurity, and data analysis, such clarity would provide a critical runway for competitive adoption.

Prioritizing Small Businesses in AI Training and Talent Development

To help close the AI skills gap, the NSBAi Task Force calls for federal AI training programs to explicitly prioritize small businesses for participation. Without targeted access, smaller firms often lack the resources needed to keep pace with larger competitors in deploying emerging technologies.

Reducing Legal Uncertainty: Copyright and Liability

NSBAi Task Force highlights two major areas where small businesses face significant risks:

• Copyright/IP Clarity | NSBA urges lawmakers to establish clear standards for how much AI involvement is permissible in works eligible for copyright protection. Ongoing ambiguity in this area has slowed innovation and increased legal exposure for small firms.

• AI Liability Framework | The group is pushing for a structured liability system that defines responsibility across the AI supply chain while opposing the creation of a broad private right of action. NSBA warns that without clear liability rules, small businesses could face unpredictable and expensive legal challenges.

At the core of the Task Force recommendations is a simple message: Congress should adopt a common sense regulatory philosophy to ensure small businesses are not disproportionately burdened, while balancing and preserving private sector flexibility needed for continued innovation.

The NSBAi Task Force's recommendations underscore a central theme of how small businesses are essential drivers of U.S. technological growth. AI federal policy or regulations on any level must reflect small businesses' unique strengths and vulnerabilities. As Congress accelerates its work on AI governance, these proposals aim to ensure that America’s entrepreneurs are equipped, protected, and empowered in the AI-powered economy.

Learn more about the NSBAi Task Force's recommendations and pursuits, and join our cause to protect the human face of small business in a digitally thriving world.