Fire Sale Loophole Closing Act of 2025

This bill closes a loophole allowing firearms dealers to improperly transfer business inventory firearms when closing their operations. It prohibits dealers from moving such firearms into personal collections or to employees after receiving notice of license revocation or denial, and bans direct sales to unlicensed individuals after license expiration (with a 30-day window for licensed dealer transfers). The law defines "business inventory firearms" as those recorded in business logs and imposes fines or up to 5 years in prison for violations. It directly affects federally licensed firearms dealers facing license termination.