The AI for Mainstreet Act mandates that Small Business Development Centers provide guidance and training to small businesses on integrating and securing the use of artificial intelligence in their operations without authorizing new funding.
Mark Alford
Representative
MO-4
The AI for Mainstreet Act requires Small Business Development Centers (SBDCs) to provide guidance, training, and outreach to small businesses on effectively and securely integrating artificial intelligence into their operations. This assistance will cover areas like cybersecurity, data protection, and regulatory compliance. The bill utilizes the existing definition of AI from the National Artificial Intelligence Initiative Act of 2020. Importantly, this Act does not authorize any new funding for these expanded responsibilities.
AI for Mainstreet Act Mandates Small Business Centers Offer AI Training, But Without New Funding
The new AI for Mainstreet Act is pretty straightforward: it updates the mission of Small Business Development Centers (SBDCs) to include getting small businesses up to speed on Artificial Intelligence (AI). This isn't just a suggestion; the bill explicitly adds a new duty for SBDCs to provide information, guidance, and training on using AI in business operations. For a small manufacturing shop or a local accounting firm, this means there should soon be a place to get free, structured advice on how to integrate AI tools—like using them to manage inventory or automate customer service—into their daily workflow.
The New AI Toolkit for Main Street
The training SBDCs provide has to cover specific, high-stakes areas. It’s not just about which app to download. Section 2 of the bill demands that this AI guidance focuses on things that actually keep a business alive, like planning for unexpected events (risk), keeping customer data safe (data and intellectual property security), and making sure the business is protected from hackers (cybersecurity). They also need to cover how AI can help small businesses comply with regulations and build customer trust. If you're a small business owner who’s been hearing the buzz about AI but doesn't know where to start, this is a clear signal that the federal government is trying to provide a structured on-ramp.
The Catch: No New Cash, Just New Duties
Here’s where the policy meets the reality of budgets. Section 3, titled “Compliance with CUTGO” (Cut-As-You-Go), is the cold shower. This section explicitly states that the Act authorizes no new funding to carry out these new AI-related duties. Think about it: SBDCs are already busy helping people secure loans, write business plans, and navigate existing regulations. Now, they have to develop and deliver a whole new suite of complex, specialized training on AI, cybersecurity, and data protection—all using the same budget they had yesterday.
For the SBDCs themselves, this is a classic unfunded mandate. They have to figure out how to stretch existing resources, which could mean a trade-off. If they spend time and money developing robust AI programs, they might have to scale back on other services, like traditional business counseling or loan application assistance. The bill does give them a little wiggle room on outreach, stating they must reach out to small businesses about AI “To the extent they can practically do so.” That “practically” clause is likely there because Congress knows they didn't attach a check to the mandate. While the goal of getting AI guidance to small businesses is great, the lack of dedicated funding means the quality and availability of that training might be inconsistent across the country, depending on how stretched each local SBDC already is.