GYMS Act Could Offer Relief to Struggling Fitness Businesses

Proposed Relief Would Aid Fitness Businesses Impacted by COVID-19

Relief could be coming soon for companies in the fitness industry. Bipartisan legislation was recently introduced in the House that would establish a recovery fund to award grants to gyms and fitness facilities to offset the economic impacts of the COVID-19 pandemic.

The Gym Mitigation and Survival Act (GYMS Act) stipulates that eligible businesses – specifically fitness facilities that offer on-site instruction of physical exercise and fitness maintenance – could receive grants of up to 45 percent of the business’s 2019 revenue (up to $20 million). Relief could be used to cover eligible costs including payroll, rent/mortgage, utilities as well as expenses related to worker protection, such as personal protective equipment (PPE).

Additionally, businesses that have experienced revenues of less than 33 percent in their last quarter, compared to 2019 earnings, could apply for supplementary grants.

Gyms and fitness studios have been severely impacted by the pandemic, with government-mandated shutdowns imposed for much of 2020 and many state and local regulations still restricting capacities today.

Grants would be made by the Small Business Administration, which also administers the Paycheck Protection Program.

MFA will continue to follow developments related to this legislation as well as the resulting impacts to gyms and fitness centers. In the meantime, please don’t hesitate to reach out to our team to discuss other ways we can support your health or fitness organization.

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