On February 22, 2026, Idaho Governor John Smith signed into law a series of amendments to the state's business laws aimed at protecting small businesses from frivolous lawsuits. The new legislation, known as the Small Business Protection Act, comes as a response to the growing trend of opportunistic legal action against small business owners.One of the key provisions of the Small Business Protection Act is the establishment of a "loser pays" rule for frivolous lawsuits brought against small businesses. Under this rule, plaintiffs who file a lawsuit against a small business and lose will be required to pay the defendant's legal fees and court costs. This is intended to discourage individuals from filing baseless lawsuits in hopes of securing a quick settlement from small businesses without any valid legal basis.Additionally, the Small Business Protection Act includes measures to streamline the legal process for small businesses facing litigation. The law creates a new specialized small business court where disputes involving small businesses can be heard quickly and efficiently, reducing the burden of costly and time-consuming litigation on small business owners.Governor Smith emphasized the importance of protecting small businesses, which he described as the backbone of Idaho's economy. "Small businesses are the lifeblood of our communities, and they should not be burdened with the threat of frivolous lawsuits that can jeopardize their livelihoods," he stated during the signing ceremony.The Small Business Protection Act has received widespread support from business owners and industry groups across Idaho. Small business owner Sarah Williams praised the new law, stating, "As a small business owner, I often worry about the possibility of facing a frivolous lawsuit that could bankrupt my business. This new legislation provides much-needed protection and peace of mind for myself and other small business owners in Idaho."With the enactment of the Small Business Protection Act, Idaho joins a growing number of states that have taken steps to safeguard small businesses from legal harassment. The state's business community is hopeful that the new law will create a more favorable environment for small business growth and entrepreneurship in Idaho.