Fire Sale Loophole Closing Act of 2025

The Fire Sale Loophole Closing Act of 2025 would tighten rules around what happens to a firearms dealer’s "business inventory" when a license is revoked or not renewed. The bill defines a business inventory firearm as any firearm that must be logged in a dealer’s acquisition/disposition records. It then prohibits certain transfers of those firearms after notice of license revocation or denial, and after license revocation or expiration, with limited exceptions. It also imposes penalties for violations, requires specific notices to explain the law when licenses are revoked or denied, and includes a policy statement about ATF authority to regulate how firearms businesses wind down operations. In short, the bill is designed to prevent “fire sales”—transferring inventory to personal collections, employees, or unlicensed individuals—when a dealer’s license is in jeopardy or terminated.