Winter Recreation Small Business Recovery Act of 2025
- Bill Number
- S. 1309
- Origin Chamber
- Senate
- Congress
- 119th Congress, Session 1
- Policy Area
- Commerce
- Status
- Introduced
- Latest Action
- 2025-04-04: Read twice and referred to the Committee on Small Business and Entrepreneurship.
- Last Updated
- 2025-05-27T14:12:52Z
AI-Generated Summary
Purpose
The Winter Recreation Small Business Recovery Act of 2025 aims to expand federal disaster assistance under the Small Business Act to include "snow drought" as a qualifying disaster. This would help small businesses, particularly those in winter recreation industries like skiing or snowmobiling, recover from economic losses due to abnormally low snowpack caused by insufficient precipitation or warm temperatures leading to rain instead of snow.
Key Provisions
- Findings Section: Establishes congressional recognition of snow drought, defined as a period of abnormally low snowpack, either from below-normal cold-season precipitation (dry snow drought) or warm temperatures causing rain or early snowmelt despite near-normal precipitation (warm snow drought), based on the American Meteorological Society's glossary.
- Amendment to Disaster Definition: Adds "snow drought" as a new category of disaster in the Small Business Act.
- Rulemaking Requirement: The Small Business Administration (SBA) Administrator must issue regulations to implement this change within 90 days of enactment, consulting with the Director of the National Weather Service.
- Interagency Review and Report: The Comptroller General (head of the U.S. Government Accountability Office) must submit a report to Congress reviewing:
- Federal resources available to assist small businesses harmed by low snow or lack of precipitation.
- Strategies for small businesses to build resilience and adapt their models to snow droughts.
- Recommendations for legislative or administrative actions, including assessing the SBA's ability to expand its Economic Injury Disaster Loan (EIDL) program—a low-interest loan option for businesses facing economic harm from disasters—to cover snow drought impacts.
Significant Changes to Existing Law
- Modifies Section 3(k)(2) of the Small Business Act (15 U.S.C. 632(k)(2)) by adding "snow drought" as subparagraph (D) to the definition of a "disaster," alongside existing categories like hurricanes, floods, and wildfires.
- This expands eligibility for SBA disaster relief programs, such as EIDL loans, to economic injuries from snow shortages, which were previously not explicitly covered unless tied to broader weather events.
Potential Impacts
- On Government Agencies: The SBA will need to update policies and processes to handle snow drought claims, potentially increasing workload and loan disbursements. The National Weather Service will advise on technical definitions, and the Comptroller General's report could lead to further resource allocation or program enhancements.
- On Citizens and Businesses: Small businesses in snow-dependent regions (e.g., ski resorts, winter tourism operators) could access federal loans to offset lost revenue, aiding recovery and job preservation. This may benefit rural economies in states like those represented by the bill's sponsors (e.g., Wisconsin, Maine, Michigan, Minnesota).
- On International Relations: No direct impacts, as the bill focuses on domestic small business aid.
Main Stakeholders Affected
- Small Businesses: Primarily winter recreation and tourism operators facing economic injury from snow droughts.
- Federal Agencies: SBA (for loan administration), National Weather Service (for expertise on snow conditions), and Government Accountability Office (for oversight and reporting).
- Communities and Regions: Residents and economies in northern U.S. states reliant on winter sports and snow-based activities.
- Congress: Receives the required report to inform future policy on climate-related business support.
Notable Legal, Constitutional, or Political Implications
- Legal: Broadens the scope of "disaster" under federal law to include environmental phenomena like snow drought, potentially paving the way for similar expansions to other climate impacts (e.g., droughts or heatwaves). The 90-day rulemaking deadline ensures prompt implementation but may challenge agency resources.
- Constitutional: Aligns with Congress's authority under the Commerce Clause to regulate interstate economic activities, as small business aid supports national commerce without raising federalism concerns.
- Political: Addresses climate change effects on local economies in a bipartisan manner (sponsored by senators from both parties), highlighting adaptation needs for vulnerable industries. The report could influence future funding or program reforms, emphasizing resilience over reactive aid.
This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.
Sponsor
Cosponsors (4)
Sen. Collins, Susan M. [R-ME], Sen. Peters, Gary C. [D-MI], Sen. Smith, Tina [D-MN], Sen. Klobuchar, Amy [D-MN]
Recent Actions
- 2025-04-04: Read twice and referred to the Committee on Small Business and Entrepreneurship.
- 2025-04-04: Introduced in Senate
Bill Versions
- Winter Recreation Small Business Recovery Act of 2025 — issued 2025-04-04 — PDF (4 pages)