The "Fire Sale Loophole Closing Act of 2025" seeks to close a perceived loophole by restricting how Federal firearms licensees (FFLs) can dispose of their business inventory firearms when their license is revoked or denied renewal. Congress affirms the Bureau of Alcohol, Tobacco, Firearms and Explosives' (ATF) authority to regulate the discontinuation of FFL businesses and clarify requirements for firearms remaining with former licensees. The bill makes it unlawful for an FFL, after receiving notice of license revocation or denial, to transfer a business inventory firearm into a personal collection, to an employee, or to a related individual. Once a license is officially revoked or expires, the FFL is prohibited from transferring these firearms to any person other than another licensed dealer or a law enforcement agency. Moreover, a firearm transferred from business inventory into a personal collection cannot be further transferred by that individual for one year. A business inventory firearm is defined as any firearm required to be recorded in an FFL's acquisition and disposition logs. Knowingly violating these provisions can result in fines and imprisonment for up to five years for willful offenses, and official notices of license action must now include these new restrictions.