Small Business Act Updated: 'Snow Drought' Now a Disaster, Unlocking Federal Aid for Winter Recreation

The Winter Recreation Small Business Recovery Act of 2025 is a straightforward piece of legislation that updates the Small Business Act to recognize a modern reality: sometimes, the weather doesn't cooperate, and that can tank a local economy. Essentially, this bill makes “snow drought” an official disaster for the purposes of federal small business assistance.

When No Snow Means No Business

For anyone running a ski resort, a snowmobile rental shop, or even a local diner that relies on winter tourism traffic, a winter without snow is a financial catastrophe. This bill (SEC. 3) amends the Small Business Act to officially add “snow drought” to the list of events that qualify as a disaster. Congress specifically defines a snow drought in two ways (SEC. 2): it can be a "dry" drought, meaning not enough precipitation, or a "warm" drought, where the precipitation falls as rain or the snow melts too early because temperatures are too high.

What this means in the real world is that if a lack of snow cripples the local economy—say, a ski town sees 80% fewer visitors than normal—small businesses in that area could become eligible for federal relief programs, like the Economic Injury Disaster Loan (EIDL) program. Before this change, getting that kind of help for a weather problem that wasn't a flood or hurricane was much harder.

The 90-Day Clock and the Fine Print

This isn’t just a policy statement; it kicks off immediate action. The bill requires the Administrator of the Small Business Administration (SBA) to work with the National Weather Service to write the official rules for this new disaster designation within 90 days of the bill becoming law (SEC. 3). This is the crucial step, as these rules will determine the specific thresholds—how little snow, for how long—qualifies as an official disaster. For business owners, the speed and clarity of this rulemaking process will determine how quickly this new lifeline can be accessed.

Future-Proofing Winter Economies

Beyond immediate disaster relief, the bill sets up a deeper review by the Comptroller General of the United States. This review is designed to look at how federal agencies are currently helping snow-dependent businesses and, more importantly, how they should be helping them in the future (SEC. 3). The Comptroller General must specifically look at ways these small businesses can become more resilient to future snow shortages—think snowmaking technology grants or diversification strategies.

This review also specifically targets the SBA’s capacity, asking if the current Economic Injury Disaster Loan program is equipped to handle this expanded disaster workload. This suggests that while the bill offers a solution now, it acknowledges that the financial burden on taxpayers and the federal government could increase as more businesses become eligible for disaster relief due to climate-related issues. For taxpayers, this is the cost of recognizing a new climate reality: expanded disaster relief means expanded federal spending, though it's offset by the economic stability it provides to affected communities.