Small Business Wildfire Smoke Recovery Act
- Sponsor
- Sen. Cortez Masto, Catherine [D-NV]
- Committees
- Small Business and Entrepreneurship Committee (primary)
- Last action
- May 14, 2026
Bottom line
The bill expands the types of events that qualify for federal small business disaster assistance to include damage caused by smoke, aiming to provide relief to businesses impacted by wildfire smoke.
What it actually does
This bill amends the Small Business Act to explicitly include "smoke" in the definition of a disaster. This change would make small businesses affected by smoke-related damages, particularly from wildfires, eligible for disaster assistance programs administered by the Small Business Administration (SBA), such as disaster loans.
Proponents argue
Supporters argue that wildfire smoke can cause significant economic disruption and physical damage to small businesses, including loss of customers due to poor air quality, damage to inventory, and increased operational costs for air filtration. Including smoke in the disaster definition would provide a crucial lifeline for these businesses to recover and rebuild, recognizing the comprehensive impact of wildfires beyond direct fire damage.
Opponents contend
Critics might argue that expanding the definition of disaster to include smoke could significantly increase the financial burden on federal disaster relief programs, potentially straining resources and diverting funds from other critical disaster responses. There could also be concerns about the difficulty in quantifying and attributing "smoke damage" specifically, leading to potential administrative complexities or even fraudulent claims.
The bill is extremely short and straightforward, allowing for quick comprehension by any interested reader.
Section 2
Expanding "Disaster" Definition to Include Smoke
This provision modifies Section 3(k)(2) of the Small Business Act, which defines what constitutes a "disaster" for the purpose of federal small business assistance. By adding "smoke" to this definition, the bill ensures that small businesses suffering economic injury or physical damage specifically due to smoke, such as from wildfires, can qualify for SBA disaster loans and other recovery programs.
Supporters argue
Supporters argue that smoke, particularly from wildfires, can cause substantial and prolonged economic disruption to small businesses, including reduced tourism, health impacts on workers, and damage to goods. This provision provides a necessary and overdue recognition of these impacts, offering a vital safety net for businesses to recover.
Critics contend
Critics might contend that while smoke is a concern, explicitly adding it to the disaster definition could open the door to a wide range of less severe or harder-to-quantify impacts, potentially overwhelming the SBA's resources. They might suggest that existing disaster declarations for wildfires already cover most significant impacts, or that other mechanisms are more appropriate for smoke-related issues.
Tradeoffs
The provision balances the need to provide comprehensive support to small businesses affected by environmental hazards against concerns about expanding the scope and cost of federal disaster programs. It also raises questions about the administrative feasibility of assessing and attributing "smoke damage" specifically.