CEO DATELINE - GYMS Act would fortify fitness centers
CEO DATELINE - GYMS Act would fortify fitness centers
- February 9, 2021 |
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Kathryn Walson
A new bipartisan bill, H.R. 890, would grant ailing gyms as much as 45% of 2019 revenue—or $20 million, whichever is less—to replace revenue lost in 2020, ClubIndustry.com reported.
The Community Gyms Coalition and the International Health, Racquet & Sportsclub Association are advocating for the passage of the bill.
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Most of Congress's previous economic relief packages have either left out or not sufficiently helped the fitness industry, according to a statement on IHRSA's website.
"Government-mandated shutdowns and operating restrictions have devastated local gyms and fitness studios, with tens of thousands of fitness facilities at risk of closing (their) doors forever," the Community Gyms Coalition's website states.
U.S. Representatives Mike Quigley (D-Ill.) and Brian Fitzpatrick (R-Pa.) on Feb. 5 introduced the Gym Mitigation and Survival (GYMS) Act, which would provide $30 billion in federal funding to fitness centers that have foundered during the COVID-19 pandemic.
Business owners could use the funds for costs including payroll, utilities, and rent and mortgage payments. The GYMS Act would authorize the Small Business Administration to disburse grants.
Since March 2020, thousands of fitness facilities have closed, and 44% of fitness-industry jobs—1.4 million jobs—have been lost, Fitzpatrick and Quigley said in a joint statement.
"Unlike many other businesses financially impacted by the pandemic, health and fitness clubs did not have the capability to pivot to new revenue streams," Fitzpatrick said.
Severely distressed fitness centers—those with revenues of 33% or less in the most recent quarter as compared to 2019—could apply for a supplemental grant of up to 25% of the initial grant, ClubIndustry.com reported.
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