Winter Recreation Small Business Recovery Act of 2025
- Sponsor
- Sen. Baldwin, Tammy [D-WI]
- Committees
- Small Business and Entrepreneurship Committee (primary)
- Last action
- Apr 4, 2025
Bottom line
The bill expands federal disaster relief eligibility to include economic harm caused by low or no snowfall, providing a new safety net for winter recreation businesses and related sectors.
What it actually does
This bill modifies the definition of "disaster" in the Small Business Act to explicitly include "snow drought," which is defined as a period of abnormally low snowpack. This change would make small businesses that suffer economic injury due to insufficient snowfall eligible for federal disaster assistance, such as Economic Injury Disaster Loans. The bill also mandates the Small Business Administration (SBA) to promulgate implementing regulations and requires the Comptroller General to report on federal resources and small business resilience to snow droughts.
Proponents argue
Supporters argue that this bill provides a crucial safety net for small businesses in regions heavily reliant on winter tourism and recreation, which are increasingly vulnerable to climate change impacts like snow droughts. They contend it recognizes a legitimate economic hardship that current disaster definitions overlook, helping these businesses survive and protect local jobs.
Opponents contend
Critics might argue that expanding the definition of "disaster" to include economic impacts from weather variations like snow drought could strain federal disaster relief resources, potentially diverting funds from more traditional natural disasters. They might also question whether such economic impacts should be covered by disaster aid, suggesting businesses should adapt through insurance or diversification.
The bill is very short and straightforward, allowing ample time for a thorough understanding of its provisions.
Section 3(a)
Expanding Disaster Definition to Include Snow Drought
This section directly amends the Small Business Act to add "snow drought" to the list of events considered a "disaster." This change means that small businesses suffering economic injury due to abnormally low snowpack could become eligible for federal disaster assistance programs, such as low-interest loans, which were previously reserved for more traditional natural disasters like floods or hurricanes.
Supporters argue
This provision is essential for modernizing disaster definitions to reflect evolving climate impacts. It provides a vital lifeline to businesses in ski resorts, snowmobile rentals, winter guiding services, and related hospitality sectors that face existential threats from inadequate snowfall, ensuring they can recover from climate-induced economic shocks.
Critics contend
Expanding the definition to include economic impacts from weather patterns like snow drought could set a precedent for other weather-related economic downturns, potentially overstretching federal disaster resources and blurring the lines between natural disaster relief and general economic support.
Tradeoffs
This provision balances the need to support vulnerable small businesses in climate-impacted sectors against concerns about expanding the scope and potential cost of federal disaster programs and the precedent it sets for other weather-related economic challenges.
Section 3(b)
Mandate for Implementing Regulations
This section requires the Administrator of the Small Business Administration (SBA), in consultation with the Director of the National Weather Service, to create and publish rules within 90 days of the bill becoming law. These regulations will define how "snow drought" is determined for disaster declaration purposes and establish the operational framework for how the new disaster assistance program will be administered.
Section 3(c)
GAO Report on Federal Resources and Business Resilience
This section directs the Comptroller General of the United States (who heads the Government Accountability Office, GAO) to produce a report for Congress. The report will review existing federal resources for small businesses affected by low snow, identify ways businesses can adapt to snow droughts and become more resilient, and recommend legislative or administrative actions. It specifically asks for an evaluation of the SBA's capacity to handle expanded disaster recovery efforts related to snow drought through the Economic Injury Disaster Loan (EIDL) program.