GYMS Act of 2021
Bill: S.1613 | Sponsor: Sen. Duckworth, Tammy (D-IL)
Policy area: Commerce

Summary:
Gym Mitigation and Survival Act of 2021 or the GYMS Act of 2021
This bill establishes a grant program to provide economic support to eligible fitness facilities in response to the COVID-19 (i.e., coronavirus disease 2019) pandemic.
Specifically, the bill authorizes the Small Business Administration to make initial and supplemental grants to privately owned fitness facilities that primarily provide health or fitness services and that do not offer golf, hunting, sailing, or riding facilities. The total amount of grant funds for a recipient may not exceed $25 million, and the recipient must use these funds for payroll costs, rent or mortgage obligations, and other ordinary and necessary business expenses.

To require the Administrator of the Small Business Administration to 
establish a grant program for certain fitness facilities, and for other 
                               purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Gym Mitigation and Survival Act of 
2021'' or the ``GYMS Act of 2021''.

SEC. 2. GRANTS FOR FITNESS FACILITIES.

    (a) Definitions.--In this section:
            (1) Administrator.--The term ``Administrator'' means the 
        Administrator of the Small Business Administration.
            (2) Affiliated business.--The term ``affiliated business'' 
        means a business in which an eligible entity has an equity or 
        right to profit distributions of not less than 50 percent, and 
        in which an eligible entity has the contractual authority to 
        control the direction of the business, provided that such 
        affiliation shall be determined as of any arrangements or 
        agreements in existence as of March 13, 2020.
            (3) Eligible entity.--The term ``eligible entity'' means a 
        fitness facility--
                    (A) which provides instruction in a program of 
                physical exercise or offers space for the preservation, 
                maintenance, encouragement, or development of physical 
                fitness;
                    (B) which does not offer golf, hunting, sailing, or 
                riding facilities;
                    (C) where the health or fitness component of which 
                is not incidental to its overall function and purpose; 
                and
                    (D) which is not part of a State or local 
                government facility.
    (b) Authority.--
            (1) Initial grants.--The Administrator may make initial 
        grants to eligible entities in accordance with this section.
            (2) Supplemental grants.--The Administrator may make a 
        supplemental grant in accordance with this section to an 
        eligible entity that receives a grant under paragraph (1) if, 
        as of December 31, 2020, the revenues of the eligible entity 
        for the most recent calendar quarter are not more than 33 
        percent of the revenues of the eligible entity for the 
        corresponding calendar quarter during 2019 due to the COVID-19 
        pandemic.
            (3) Priority.--During the initial 14-day period in which 
        the Administrator awards initial grants under this subsection, 
        the Administrator shall prioritize awarding grants to eligible 
        entities serving marginalized and underrepresented communities, 
        with a focus on women, veteran, and minority-owned and operated 
        eligible entities serving such communities.
    (c) Amount.--
            (1) Initial grants.--A grant under subsection (b)(1) shall 
        be in the amount equal to the lesser of--
                    (A) the amount equal to 45 percent of the gross 
                revenue of the eligible entity during 2019;
                    (B) for an eligible entity that began operations 
                after January 1, 2019, the amount equal to the product 
                obtained by multiplying--
                            (i) the average monthly gross revenue for 
                        each full month during which the entity was in 
                        operation during 2019; by
                            (ii) 6; or
                    (C) $20,000,000.
            (2) Supplemental grants.--A grant under subsection (b)(2) 
        shall be in the amount equal to 25 percent of the grant 
        received by the eligible entity under subsection (b)(1).
            (3) Aggregate maximum amount.--The aggregate amount of 
        grants made to an eligible entity and any affiliated businesses 
        of the eligible entity under this section shall not exceed 
        $25,000,000.
    (d) Use of Funds.--
            (1) Certification.--An eligible entity applying for a grant 
        under this section shall make a good faith certification--
                    (A) that the uncertainty of current economic 
                conditions makes necessary the grant request to support 
                the ongoing operations of the eligible entity; and
                    (B) acknowledging that funds will be used to retain 
                workers or for other allowable expenses described in 
                paragraph (4).
            (2) Timing.--
                    (A) Expenses incurred.--
                            (i) In general.--Except as provided in 
                        clause (ii), amounts received under a grant 
                        under this section may be used for costs 
                        incurred during the period beginning on March 
                        1, 2020, and ending on December 31, 2021.
                            (ii) Extension for supplemental grants.--If 
                        an eligible entity receives a grant under 
                        subsection (b)(2), amounts received under 
                        either grant under this section may be used for 
                        costs incurred during the period beginning on 
                        March 1, 2020, and ending on June 30, 2022.
                    (B) Expenditure.--
                            (i) In general.--Except as provided in 
                        clause (ii), an eligible entity shall return to 
                        the Administrator any amounts received under a 
                        grant under this section that are not expended 
                        on or before the date that is 1 year after the 
                        date of disbursement of the grant.
                            (ii) Extension for supplemental grants.--If 
                        an eligible entity receives a grant under 
                        subsection (b)(2), the eligible entity shall 
                        return to the Administrator any amounts 
                        received under either grant under this section 
                        that are not expended on or before the date 
                        that is 18 months after the date of 
                        disbursement to the eligible entity of the 
                        grant under subsection (b)(1).
            (3) Allowable expenses.--
                    (A) Definitions.--In this paragraph--
                            (i) the terms ``covered mortgage 
                        obligation'', ``covered rent obligation'', 
                        ``covered utility payment'', and ``covered 
                        worker protection expenditure'' have the 
                        meanings given those terms in section 7A(a) of 
                        the Small Business Act (15 U.S.C. 636m(a)); and
                            (ii) the term ``payroll costs'' has the 
                        meaning given that term in section 7(a)(36)(A) 
                        of the Small Business Act (15 U.S.C. 
                        636(a)(36)(A)).
                    (B) Expenses.--An eligible entity may use amounts 
                received under a grant under this section for--
                            (i) payroll costs;
                            (ii) payments on any covered rent 
                        obligation and common area maintenance charges 
                        under a lease agreement;
                            (iii) any covered utility payment;
                            (iv) scheduled payments of interest or 
                        principal on any covered mortgage obligation 
                        (which shall not include any prepayment of 
                        principal on a covered mortgage obligation);
                            (v) scheduled interest payments on other 
                        scheduled debt as of February 15, 2020;
                            (vi) covered worker protection 
                        expenditures;
                            (vii) payments of principal on outstanding 
                        loans;
                            (viii) payments made to independent 
                        contractors, as reported on Form-1099 MISC; and
                            (ix) other ordinary and necessary business 
                        expenses, including--
                                    (I) settling existing debts owed to 
                                vendors;
                                    (II) maintenance expenses;
                                    (III) administrative costs;
                                    (IV) taxes;
                                    (V) operating leases;
                                    (VI) advertising, fitness 
                                equipment, subscription, and software 
                                expenses that are within the scope of 
                                the normal business practice of the 
                                eligible entity;
                                    (VII) payments required for 
                                insurance on any insurance policy;
                                    (VIII) capital expenditures or 
                                expenses required under any State, 
                                local, or Federal law or guideline 
                                related to social distancing; and
                                    (IX) any other expenses that the 
                                Administrator determines to be 
                                essential to maintaining the eligible 
                                entity.
            (4) Prohibited expenses.--An eligible entity may not use 
        amounts received under a grant under this section--
                    (A) to purchase real estate;
                    (B) for payments of interest or principal on loans 
                originated after February 15, 2020;
                    (C) to invest or re-lend funds;
                    (D) for contributions or expenditures to, or on 
                behalf of, any political party, party committee, or 
                candidate for elective office; or
                    (E) for any other use as may be prohibited by the 
                Administrator.
    (e) Authorization of Appropriations.--There is authorized to be 
appropriated $30,000,000,000 to carry out this section.
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