Bill Proposes Adding 'Snow Drought' to SBA Disaster List, Opening Path for Small Business Loans

This proposed legislation, the "Winter Recreation Small Business Recovery Act of 2025," aims to help small businesses struggling with unusually low snow conditions. It does this by officially adding "snow drought"—defined as either a lack of precipitation or warm temperatures melting snow—to the list of disasters covered under the Small Business Act. If enacted, this would allow affected businesses to potentially qualify for Economic Injury Disaster Loans (EIDL) from the Small Business Administration (SBA).

When Winter Doesn't Deliver

Ever had a winter where the snow just... doesn't show up? This bill recognizes that lack of snow can be a real economic disaster, especially for towns built around winter recreation. Section 3 amends the Small Business Act to treat "snow drought" like other disasters (think hurricanes or floods). This isn't just about a few bad ski days; the bill acknowledges it can be due to overall low precipitation (dry drought) or temperatures too warm for snow, even with normal precipitation (warm drought). The goal is to give businesses like ski rental shops, lodges, or restaurants in tourist towns a lifeline when their peak season fizzles out due to weather.

Unlocking Financial Aid for Snowless Seasons

So, how would this work? By adding "snow drought" to the official disaster list, businesses suffering economic losses because of it could apply for SBA's EIDL program. These are loans designed to help businesses meet financial obligations they could have met had the disaster not occurred. The bill gives the SBA Administrator 90 days to work with the National Weather Service and create the specific rules for how this would be implemented. This means defining exactly how severe a snow drought needs to be and what kind of proof businesses need to provide to qualify for assistance.

Making Sure the Safety Net Works

Adding a new disaster type is one thing; making sure the help is effective and fair is another. That's why the bill also tasks the Comptroller General (an independent government watchdog) with digging into this. They'll report back to Congress on what resources are already available, how businesses can adapt to unpredictable winters, and whether the SBA's EIDL program is actually suited to handle this specific type of slow-burn economic injury caused by lack of snow. This review is crucial because defining a "snow drought" disaster and ensuring aid goes where it's truly needed—without opening the door to misuse—will be key challenges. It's about finding the right balance between providing necessary support and managing the program responsibly.