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Gyms and Fitness Centers May Get $30B Govt. Aid
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Gyms and Fitness Centers May Get $30B Govt. Aid

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Two U.S. Reps Want Gyms to Be the Next Business Category to Get Specialized COVID-19 Relief. With a Pot of $30 Billion, the Gym Mitigation and Survival Act Answers President Biden’s Call to “Go Big.”

With the House of Representatives set to vote on a coronavirus relief package and President Joe Biden vowing to “go big,” two representatives have decided now it’s time to retool, rebrand and reintroduce their proposal for a $30 billion bill targeted at helping gyms and fitness centers. 

U.S. Reps. Michael Quigley (D-IL) and Brian Fitzpatrick (R-PA) have co-sponsored the Gym Mitigation and Survival Act – or “GYMs” Act, a lifeline to an industry battered by lockdowns and health concerns of one-time gym goers.

The act is a reiteration of the Health & Fitness Recovery Act of 2020, which the pair introduced in October during the slower, more contentious talks of an additional COVID-19 relief package between then-President Donald Trump, the Republican-controlled Senate and the Democratic-led House. With Biden pricing this round of relief spending at $1.9 trillion and Democrats in control of both chambers, its chances of passing are improved.

The bill would allow gyms and fitness centers to apply for grants to recoup up to 45 percent of 2019 revenue or $20 million to replace lost revenue in 2020. For beneficiaries, this is a major upgrade from Quigley and Fitzpatrick’s previous proposal, which provided grants of up to 10 percent of lost revenue or $10 million. The new proposed bill also allows businesses to apply for additional grants if they had a revenue of 33 percent or less in the last quarter, compared to its 2019 earnings, giving additional assistance to severely injured gyms and fitness centers.

This bill is also different in that gyms and fitness centers have to hold classes, which narrows down the potential beneficiaries. The bill from October allowed fitness industry vendors and supplies to receive grants as well.

The approved uses for the grant money are the same: payroll, rent, mortgage, utilities, insurance, and expenses related to protective equipment and other measures to protect staff from infection.

The grants would be doled out through the Small Business Administration and the legislation prioritizes initial grants to women, veteran-owned and minority-owned businesses.

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Smiling in the image are Deanna Hasni, founder of Joya Yoga; California First Partner Jennifer Siebel Newsom; Bob Rodger, CEO of Fitness 19; Gina Baski, founder of TrifitLA; Francesca Schuler, president of California Fitness Alliance; and Don Dickerson, vice president of Fitness SF.

The two have a new argument, as well: the coronavirus relief package passed in December set aside $15 billion in grants for entertainment venues, independent movie theaters and cultural institutions, so why not gyms and fitness centers?

Based on data gathered by the International Health, Racquet & Sportsclub Association (IHRSA), which pushed for the bill, 15 percent of fitness clubs and studios had closed permanently as of September 30, one in four were projected to close by year’s end, $15 billion in revenue was lost due to COVID-19 and U.S. fitness centers still in business had a 37 percent decline in revenue in 2020.

The more generous offerings per-applicant of the bill now being put forth may reflect the deepening economic strife of gyms, as surges and new strains keep people away from gyms and have even caused second lockdowns in some areas (including lucrative California), curtailing any rebound. It may also reflect the lobbying effort of the newly formed Community Gyms Coalition, an organization that includes such big players as CrossFit, SolidCore, Pure Barre, Orange Theory and ClassPass.

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