Health and Fitness Recovery Act of 2020 (H.R. 8485)

November 5, 2020


Federal legislation has been introduced in the U.S. House of Representatives aimed to aid fitness studios and facilities that have been adversely affected by COVID-19. If the bill is passed by the House of Representatives, it will then go to the Senate for approval. It must pass both of these legislative bodies and then be signed by the President to become law. Although the chances of it passing appear remote at this time, we want you to know about the existence of this bill which would assist Pilates studios if it passes.

This bill would provide 30 billion dollars of relief funds to fitness studios and facilities between now and December 31, 2020. If you are an exercise professional or health coach who owns a health club or fitness studio, you may be able to benefit from this bill.  Some key facts to understand about this bill:

  • Grant funds would be awarded to health club and fitness studio owners and would be capped at actual business losses up to 10 percent of the previous year’s revenue or 10 million dollars (whichever is less).
  • Priority will be given to women, veterans and minority-owned businesses during the first 14-days of the grant application window.

Grant funds can be used for:

  • Payroll costs;
  • Payments of principal or interest on any mortgage obligation;
  • Rent payments, including rent under a lease agreement;
  • Utilities;
  • Maintenance, including construction or reconfiguration to accommodate social distancing requirements;
  • Supplies, including protective equipment and cleaning materials;
  • Debt obligations to suppliers that were incurred before the covered period;
  • Any other expenses that the Secretary of the Treasury determines to be essential to maintaining the eligible entity.

This legislation would establish a Health Club Recovery Fund. If this legislation moves forward it will likely be included in a larger COVID-19 relief (stimulus) package. We do not know at this time if it will go any further, but we are monitoring the legislation’s progress and we will communicate further if and when there are updates.

If the bill is not passed by this 116th Congress which ends on January 3, 2021, it will have to be re-introduced by the next Congress (117th) and follow the same process as described above.



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Category: Business