I 
116TH CONGRESS 
2D SESSION 
H. R. 8485 
To establish a $30,000,000,000 Health Club Recovery Fund to provide struc-
tured relief to health and fitness service establishments through Decem-
ber 31, 2020, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
OCTOBER 1, 2020 
Mr. FITZPATRICK (for himself and Mr. QUIGLEY) introduced the following bill; 
which was referred to the Committee on Financial Services, and in addi-
tion to the Committees on Ways and Means, and the Budget, for a period 
to be subsequently determined by the Speaker, in each case for consider-
ation of such provisions as fall within the jurisdiction of the committee 
concerned 
A BILL 
To establish a $30,000,000,000 Health Club Recovery Fund 
to provide structured relief to health and fitness service 
establishments through December 31, 2020, and for 
other purposes. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Health and Fitness 
Recovery Act of 2020’’. 
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SEC. 2. DEFINITIONS. 
In this Act: 
(1) AFFILIATED BUSINESS.—The term ‘‘affili-
ated business’’ means a business in which an eligible 
entity has an equity or right to profit distributions 
of not less than 50 percent, or in which an eligible 
entity has the contractual authority to control the 
direction of the business, provided that such affili-
ation shall be determined as of any arrangements or 
agreements in existence as of March 13, 2020. 
(2) COVERED PERIOD.—The term ‘‘covered pe-
riod’’ means the period beginning on February 15, 
2020, and ending on December 31, 2020. 
(3) ELIGIBLE ENTITY.—The term ‘‘eligible enti-
ty’’— 
(A) subject to subparagraph (B), means a 
health club, health or fitness studio, fitness cen-
ter, gym, or fitness or health spa; and 
(B) does not include an entity that is, or 
is part of, a governmental facility. 
(4) FUND.—The term ‘‘Fund’’ means the 
Health Club Recovery Fund established under sec-
tion 3. 
(5) PAYROLL COSTS.—The term ‘‘payroll costs’’ 
has the meaning given the term in section 
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7(a)(36)(A) of the Small Business Act (15 U.S.C. 
636(a)(36)(A)). 
(6) SECRETARY.—The term ‘‘Secretary’’ means 
the Secretary of the Treasury. 
SEC. 3. HEALTH CLUB RECOVERY FUND. 
(a) IN GENERAL.—There is established in the Treas-
ury of the United States a fund to be known as the Health 
Club Recovery Fund. 
(b) APPROPRIATIONS.— 
(1) IN GENERAL.—There is appropriated to the 
Fund, out of amounts in the Treasury not otherwise 
appropriated, $30,000,000,000, to remain available 
until December 31, 2020. 
(2) REMAINDER TO TREASURY.—Any amounts 
remaining in the Fund after December 31, 2020, 
shall be deposited in the general fund of the Treas-
ury. 
(c) USE
OF
FUNDS.—The Secretary shall use 
amounts in the Fund to make grants described in section 
4. 
SEC. 4. HEALTH CLUB RECOVERY GRANTS. 
(a) IN GENERAL.—The Secretary shall award grants 
to eligible entities to provide relief to such entities during 
the COVID–19 pandemic. 
(b) APPLICATION.— 
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(1) IN GENERAL.—An eligible entity desiring a 
grant under this section shall submit to the Sec-
retary an application at such time, in such manner, 
and containing such information as the Secretary 
may require. 
(2) CERTIFICATION.—An eligible entity apply-
ing for a grant under this section shall make a good 
faith certification— 
(A) that the uncertainty of current eco-
nomic conditions makes necessary the grant re-
quest to support the ongoing operations of the 
eligible entity; 
(B) acknowledging that funds will be used 
to retain workers and maintain payroll or for 
other allowable expenses described in subsection 
(e); 
(C) that the eligible entity does not have 
an application pending for a grant under sub-
section (a)(36) or (b)(2) of section 7 of the 
Small Business Act (15 U.S.C. 636) for the 
same purpose and duplicative of amounts ap-
plied for or received under this section; and 
(D) that, during the covered period, the el-
igible entity has not received amounts under 
subsection (a)(36) or (b)(2) of section 7 of the 
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Small Business Act (15 U.S.C. 636) for the 
same purpose and duplicative of amounts ap-
plied for or received under this section. 
(3) HOLD HARMLESS.—The Secretary shall not 
reduce the amount of a grant to an eligible entity 
under this section, or otherwise penalize such eligible 
entity, on the basis of the eligible entity having 
failed to hire or rehire employees contrary to assur-
ances made by the eligible entity in its grant appli-
cation, so long as the eligible entity is able to docu-
ment— 
(A) an inability to rehire individuals who 
were employees of the eligible entity on Feb-
ruary 15, 2020; and 
(B) an inability to hire similarly qualified 
employees for unfilled positions on or before 
December 31, 2020. 
(c) PRIORITY IN AWARDING GRANTS.— 
(1) IN GENERAL.—Subject to paragraph (2), 
the Secretary shall award grants to eligible entities 
under subsection (a) in the order in which completed 
applications are received by the Secretary in accord-
ance with this section. 
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(2) PRIORITY.—During the initial 14-day pe-
riod in which the Secretary awards grants under this 
section, the Secretary shall— 
(A) prioritize awarding grants to eligible 
entities serving marginalized and underrep-
resented communities, with a focus on women- 
, veteran-, and minority-owned and operated eli-
gible entities serving such communities; and 
(B) only award grants to eligible entities 
with annual revenues of less than $1,500,000. 
(d) GRANT AMOUNT.— 
(1) AGGREGATE MAXIMUM AMOUNT.—The ag-
gregate amount of grants made to an eligible entity 
and any affiliate businesses of the eligible entity 
under this section shall not exceed the lesser of— 
(A) $10,000,000; or 
(B) 10 percent of the sum of the annual 
revenues of the eligible entity and all affiliate 
businesses of the eligible entity for the calendar 
year preceding the award of the grant. 
(2) DETERMINATION OF GRANT AMOUNT.— 
(A) IN GENERAL.—The amount of a grant 
made to an eligible entity under this section 
shall be based on the difference in revenues or 
estimated revenues of the eligible entity during 
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a calendar quarter in 2020 selected by the eligi-
ble entity as compared to 95 percent of the rev-
enues of the eligible entity in the same calendar 
quarter in 2019. 
(B) VERIFICATION.—An eligible entity 
shall submit to the Secretary such revenue 
verification documentation as the Secretary 
may require to determine the amount of a grant 
under subparagraph (A). 
(C) REPAYMENT.—Any amount of a grant 
made under this section to an eligible entity 
based on estimated revenues in a calendar quar-
ter in 2020 that is above the actual revenues of 
the eligible entity during that calendar quarter 
shall be converted to a loan that has— 
(i) an interest rate of 1 percent; and 
(ii) a maturity date of 10 years begin-
ning on January 1, 2021. 
(3) NO DUPLICATION OF BENEFITS.—An eligi-
ble entity that received a loan under section 7(a)(36) 
of the Small Business Act (15 U.S.C. 636(a)(36)) 
may not apply for or use grant amounts under this 
section for the same expenses for which the eligible 
entity received the loan. 
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(4) LIMITATION.—An eligible entity may not re-
ceive more than 1 grant under this section. 
(e) USE OF FUNDS.— 
(1) ALLOWABLE USES.—During the covered pe-
riod, an eligible entity that receives a grant under 
this section may use the grant funds for— 
(A) payroll costs; 
(B) payments of principal or interest on 
any mortgage obligation; 
(C) rent payments, including rent under a 
lease agreement; 
(D) utilities; 
(E) maintenance expenses, including con-
struction or reconfiguration to accommodate so-
cial distancing requirements; 
(F) supplies, including protective equip-
ment and cleaning materials; 
(G) debt obligations to suppliers that were 
incurred before the covered period; and 
(H) any other expenses that the Secretary 
determines to be essential to maintaining the el-
igible entity. 
(2) RETURNING FUNDS.—If an eligible entity 
that receives a grant under this section permanently 
ceases operations on or before December 31, 2020, 
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the eligible entity shall return to the Treasury any 
funds that the eligible entity received through the 
grant and did not use for the allowable expenses 
under paragraph (1). 
(3) 
CONVERSION
TO
LOAN.—Any 
grant 
amounts received by an eligible entity under this sec-
tion that are unused after December 31, 2020, shall 
be immediately converted to a loan with— 
(A) an interest rate of 1 percent; and 
(B) a maturity date of 10 years. 
(f) TAXABILITY.—For purposes of the Internal Rev-
enue Code of 1986— 
(1) the amount of a grant awarded to an eligi-
ble entity under this section shall be excluded from 
the gross income of the eligible entity; 
(2) no deduction shall be denied or reduced, no 
tax attribute shall be reduced, and no basis increase 
shall be denied, by reason of the exclusion from 
gross income provided by paragraph (1); and 
(3) an eligible entity that receives a grant under 
this section shall not be eligible for the credit de-
scribed in section 2301 of the CARES Act (Public 
Law 116–136). 
(g) REGULATIONS.—Not later than 15 days after the 
date of enactment of this Act, the Secretary shall issue 
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regulations to carry out this section without regard to the 
notice and comment requirements under section 553 of 
title 5, United States Code. 
(h) APPROPRIATIONS FOR STAFFING AND ADMINIS-
TRATIVE EXPENSES.— 
(1) IN GENERAL.—There is appropriated to the 
Secretary, out of amounts in the Treasury not other-
wise appropriated, $200,000,000, to remain avail-
able until December 31, 2020, for staffing and ad-
ministrative expenses related to administering grants 
awarded under this section. 
(2) SET
ASIDE.—Of amounts appropriated 
under paragraph (1), $60,000,000 shall be allocated 
for outreach to traditionally marginalized and under-
represented communities, with a focus on women-, 
veteran-, and minority-owned and operated eligible 
entities, including the creation of a resource center 
targeted toward these communities. 
SEC. 5. EMERGENCY DESIGNATION. 
(a) IN GENERAL.—The amounts provided by this Act 
are designated as an emergency requirement pursuant to 
section 4(g) of the Statutory Pay-As-You-Go Act of 2010 
(2 U.S.C. 933(g)). 
(b) DESIGNATION IN SENATE.—In the Senate, this 
Act is designated as an emergency requirement pursuant 
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to section 4112(a) of H. Con. Res. 71 (115th Congress), 
the concurrent resolution on the budget for fiscal year 
2018. 
Æ 
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