🏛️ Policy, Capital & Main Street AI—What’s Changing for SMBs

Welcome back to the AI for Small Business newsletter!

This week, we’re unpacking a mix of budget shifts, local innovation, and emerging tech. There’s new momentum around AI on Main Street, but also some policy changes that could undercut support programs many small business owners rely on — like SCORE and USDA’s regional food initiatives. Meanwhile, state-level programs are stepping up, Reddit users are dissecting SBA loan timelines, and a promising IT modernization bill could give the SBA a long-overdue upgrade. Let’s jump in.

🤖 AI Is Spreading on Main Street

NBC LA looks at how small business owners — from construction to retail — are testing out AI tools for marketing, hiring, and streamlining operations.

While it’s not full automation, entrepreneurs say the time saved is real. This story is a good reminder that AI adoption isn’t limited to tech-forward cities or billion-dollar brands — it’s happening everywhere. How much time do you spend chatting with ChatGPT?

🧑‍🏫 SCORE Faces Elimination in Proposed Federal Budget

The Trump administration’s proposed budget would zero out federal funding for SCORE, the free nationwide network that connects SMB owners with experienced business mentors.

I hadn’t heard of SCORE before. SCORE serves 500,000 entrepreneurs annually — with results — and many local chapters say they’ll be forced to shut down without SBA support. If you’ve used SCORE or are considering it, now’s the time to pay attention.

🌾 USDA Ends Support for Regional Food Business Centers

The USDA is shutting down its $400 million Regional Food Business Centers program, which helped over 5,500 local and regional food producers.

Critics argue this undermines small farms and rural economies, especially since the program was designed to build local supply chains and support minority- and women-owned producers.

🏙️ Atlanta’s Hospitality Summit Tackles Restaurant Closures

A new summit in West Midtown is bringing together chefs, landlords, city planners, and small business owners to address why so many restaurants in the area are closing.

What’s refreshing is the tone: instead of blame, it’s collaboration. The series will follow ongoing conversations aimed at saving the heart of Atlanta’s hospitality scene. I’m excited to read the rest of the Rough Draft series, and think this is a great example of local journalism covering local issues.

💸 Minnesota Invests $33M in Small Business Growth

In contrast to some of the federal retrenchment, Minnesota is launching $33 million in new grants and loan programs to support small businesses — with an emphasis on workforce training, entrepreneurship, and expanding access to capital.

Does your state have something like this?

🧾 State-Level Legislation to Watch, via NFIB

The NFIB has put together a clean summary of major bills affecting small business at the state level — including tax policies, employment law, and health care. I love this style of article from the NFIB, since I get an overview and can drill down into what matters for me.

Such as: Senate Bill 84, a worker classification bill that small businesses are rallying to keep alive.

🔧 SBA IT Modernization Bill Could Cut Loan Friction

A bipartisan bill would overhaul the SBA’s tech systems, making it easier for lenders and applicants to process loans and get funding faster.

It’s rare that tech policy and small business make headlines together — but this could be a meaningful step toward making the SBA easier to work with. That said, on the SBA front:

🗣️ Reddit Roundup: SBA Loans in Real Life

Should your own wages count in SBA eligibility?
This thread explores a common frustration: how much personal income or salary you pay yourself can dramatically affect approval odds.

Defaulting on a 7(a)?
Real talk: If your business defaults, you may be personally on the hook. Commenters walk through how collateral and guarantees really work.

What’s the real approval time?
Some say four weeks, others are stuck in 90-day limbo. If you’re planning around a 7(a), bake in time—or shop alternatives.

🧠 Leadership Isn’t Optional

Margret Moore of the Institute for Coaching argues that poor leadership is costing U.S. businesses $350 billion a year in lost productivity.

A sharp reminder that business success isn’t just about finance or strategy — it’s also about whether your team believes in what you’re building. How’s your boss? (Or, if you are the boss… how are you?)

📣 Your Turn

Are you using SCORE or applying for an SBA loan? Is AI showing up in your workflow? Did your state just pass a bill that helped—or hurt—your business?

Hit reply and tell us what’s moving the needle in your business. We love hearing from you.

Until next time,
—The MarketStreet Team