Congressional Reps Ask for $30 Billion in Covid-19 Relief for Fitness Industry
Two congressional representatives have drafted a bipartisan bill that would create a $30 billion fund to help the fitness industry weather the unprecedented hardship caused by the covid-19 pandemic.
U.S. Reps. Michael Quigley (D-IL) and Brian Fitzpatrick (R-PA) are co-sponsors of the Health & Fitness Recovery Act of 2020. The two hope that its provisions will be added to coronavirus relief efforts, which may total trillions in spending and are the subject of contentious, on-again-off-again negotiations between congressional Democrats and Republicans as the White House in a chaotic pre-election legislative session.
Under the Health & Fitness Recovery Act, businesses — including club and gym owners and operators, fitness professionals, industry suppliers — can apply for grants of up to 10 percent of the actual business loss when compared to the last year’s revenue or $10 million, whichever is less. The money can be used for payroll costs, rent payments, utilities, debts to suppliers, maintenance and supplies.
The last two categories include expenses directly related to covid-19 safety, including construction or reconfiguration to accommodate social distancing requirements and buying protective equipment and cleaning materials.
The International Health, Racquet & Sportsclub Association (IHRSA), which lobbied for the package, said that the U.S. fitness industry lost $13.9 billion from the start of the pandemic through September 1, as it endured mandated business closures during “lockdown” periods, a reluctance of patrons to return as the virus continues to spread through the U.S. and a pivot to online health instruction.
The industry group said that 6,024 businesses have closed, 2,616 of them permanently (according to data it obtained through Yelp). They also predict 25 percent of clubs to shut by the end of the year and massive layoffs and bankruptcies.
Since May, several major fitness clubs have sought bankruptcy protections in 2020, including Gold’s Gym, which has more than 400 U.S. locations; 24 Hour Fitness, which also had about 400 locations pre-pandemic; and Town Sports International, the 200-club parent company of New York Sports Club and Boston Sports Club.
“We’ve seen this health crisis attack people with preexisting conditions, making people eager to get to the gym to maintain and improve their health,” Quigley said in a press release. “We must ensure gyms have the resources they need to make it to the other side of this crisis and protect their customers in the interim.”
Added Fitzpatrick, “Unlike many other businesses affected by the COVID-19 pandemic, health and fitness clubs could not pivot to new revenue streams and many in the industry failed to qualify for assistance in the first CARES Act. The men and women who work in the fitness industry need and deserve our help.”
