GYMS Act of 2021

II 117TH CONGRESS 1ST SESSION S. 1613 To require the Administrator of the Small Business Administration to establish a grant program for certain fitness facilities, and for other purposes. IN THE SENATE OF THE UNITED STATES MAY 13, 2021 Ms. DUCKWORTH (for herself and Mr. MORAN) introduced the following bill; which was read twice and referred to the Committee on Small Business and Entrepreneurship A BILL To require the Administrator of the Small Business Adminis- tration to establish a grant program for certain fitness facilities, and for other purposes. Be it enacted by the Senate and House of Representa- 1 tives of the United States of America in Congress assembled, 2 SECTION 1. SHORT TITLE. 3 This Act may be cited as the ‘‘Gym Mitigation and 4 Survival Act of 2021’’ or the ‘‘GYMS Act of 2021’’. 5 SEC. 2. GRANTS FOR FITNESS FACILITIES. 6 (a) DEFINITIONS.—In this section: 7 VerDate Sep 11 2014 20:33 Jun 05, 2021 Jkt 019200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\S1613.IS S1613 pbinns on DSKJLVW7X2PROD with BILLS 2 •S 1613 IS (1) ADMINISTRATOR.—The term ‘‘Adminis- 1 trator’’ means the Administrator of the Small Busi- 2 ness Administration. 3 (2) AFFILIATED BUSINESS.—The term ‘‘affili- 4 ated business’’ means a business in which an eligible 5 entity has an equity or right to profit distributions 6 of not less than 50 percent, and in which an eligible 7 entity has the contractual authority to control the 8 direction of the business, provided that such affili- 9 ation shall be determined as of any arrangements or 10 agreements in existence as of March 13, 2020. 11 (3) ELIGIBLE ENTITY.—The term ‘‘eligible enti- 12 ty’’ means a fitness facility— 13 (A) which provides instruction in a pro- 14 gram of physical exercise or offers space for the 15 preservation, maintenance, encouragement, or 16 development of physical fitness; 17 (B) which does not offer golf, hunting, 18 sailing, or riding facilities; 19 (C) where the health or fitness component 20 of which is not incidental to its overall function 21 and purpose; and 22 (D) which is not part of a State or local 23 government facility. 24 (b) AUTHORITY.— 25 VerDate Sep 11 2014 20:33 Jun 05, 2021 Jkt 019200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\S1613.IS S1613 pbinns on DSKJLVW7X2PROD with BILLS 3 •S 1613 IS (1) INITIAL GRANTS.—The Administrator may 1 make initial grants to eligible entities in accordance 2 with this section. 3 (2) SUPPLEMENTAL GRANTS.—The Adminis- 4 trator may make a supplemental grant in accordance 5 with this section to an eligible entity that receives a 6 grant under paragraph (1) if, as of December 31, 7 2020, the revenues of the eligible entity for the most 8 recent calendar quarter are not more than 33 per- 9 cent of the revenues of the eligible entity for the cor- 10 responding calendar quarter during 2019 due to the 11 COVID–19 pandemic. 12 (3) PRIORITY.—During the initial 14-day pe- 13 riod in which the Administrator awards initial 14 grants under this subsection, the Administrator shall 15 prioritize awarding grants to eligible entities serving 16 marginalized and underrepresented communities, 17 with a focus on women, veteran, and minority-owned 18 and operated eligible entities serving such commu- 19 nities. 20 (c) AMOUNT.— 21 (1) INITIAL GRANTS.—A grant under sub- 22 section (b)(1) shall be in the amount equal to the 23 lesser of— 24 VerDate Sep 11 2014 20:33 Jun 05, 2021 Jkt 019200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\S1613.IS S1613 pbinns on DSKJLVW7X2PROD with BILLS 4 •S 1613 IS (A) the amount equal to 45 percent of the 1 gross revenue of the eligible entity during 2019; 2 (B) for an eligible entity that began oper- 3 ations after January 1, 2019, the amount equal 4 to the product obtained by multiplying— 5 (i) the average monthly gross revenue 6 for each full month during which the entity 7 was in operation during 2019; by 8 (ii) 6; or 9 (C) $20,000,000. 10 (2) SUPPLEMENTAL GRANTS.—A grant under 11 subsection (b)(2) shall be in the amount equal to 25 12 percent of the grant received by the eligible entity 13 under subsection (b)(1). 14 (3) AGGREGATE MAXIMUM AMOUNT.—The ag- 15 gregate amount of grants made to an eligible entity 16 and any affiliated businesses of the eligible entity 17 under this section shall not exceed $25,000,000. 18 (d) USE OF FUNDS.— 19 (1) CERTIFICATION.—An eligible entity apply- 20 ing for a grant under this section shall make a good 21 faith certification— 22 (A) that the uncertainty of current eco- 23 nomic conditions makes necessary the grant re- 24 VerDate Sep 11 2014 20:33 Jun 05, 2021 Jkt 019200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\S1613.IS S1613 pbinns on DSKJLVW7X2PROD with BILLS 5 •S 1613 IS quest to support the ongoing operations of the 1 eligible entity; and 2 (B) acknowledging that funds will be used 3 to retain workers or for other allowable ex- 4 penses described in paragraph (4). 5 (2) TIMING.— 6 (A) EXPENSES INCURRED.— 7 (i) IN GENERAL.—Except as provided 8 in clause (ii), amounts received under a 9 grant under this section may be used for 10 costs incurred during the period beginning 11 on March 1, 2020, and ending on Decem- 12 ber 31, 2021. 13 (ii) EXTENSION FOR SUPPLEMENTAL 14 GRANTS.—If an eligible entity receives a 15 grant under subsection (b)(2), amounts re- 16 ceived under either grant under this sec- 17 tion may be used for costs incurred during 18 the period beginning on March 1, 2020, 19 and ending on June 30, 2022. 20 (B) EXPENDITURE.— 21 (i) IN GENERAL.—Except as provided 22 in clause (ii), an eligible entity shall return 23 to the Administrator any amounts received 24 under a grant under this section that are 25 VerDate Sep 11 2014 20:33 Jun 05, 2021 Jkt 019200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6201 E:\BILLS\S1613.IS S1613 pbinns on DSKJLVW7X2PROD with BILLS 6 •S 1613 IS not expended on or before the date that is 1 1 year after the date of disbursement of 2 the grant. 3 (ii) EXTENSION FOR SUPPLEMENTAL 4 GRANTS.—If an eligible entity receives a 5 grant under subsection (b)(2), the eligible 6 entity shall return to the Administrator 7 any amounts received under either grant 8 under this section that are not expended 9 on or before the date that is 18 months 10 after the date of disbursement to the eligi- 11 ble entity of the grant under subsection 12 (b)(1). 13 (3) ALLOWABLE EXPENSES.— 14 (A) DEFINITIONS.—In this paragraph— 15 (i) the terms ‘‘covered mortgage obli- 16 gation’’, ‘‘covered rent obligation’’, ‘‘cov- 17 ered utility payment’’, and ‘‘covered worker 18 protection expenditure’’ have the meanings 19 given those terms in section 7A(a) of the 20 Small Business Act (15 U.S.C. 636m(a)); 21 and 22 (ii) the term ‘‘payroll costs’’ has the 23 meaning given that term in section 24 VerDate Sep 11 2014 20:33 Jun 05, 2021 Jkt 019200 PO 00000 Frm 00006 Fmt 6652 Sfmt 6201 E:\BILLS\S1613.IS S1613 pbinns on DSKJLVW7X2PROD with BILLS 7 •S 1613 IS 7(a)(36)(A) of the Small Business Act (15 1 U.S.C. 636(a)(36)(A)). 2 (B) EXPENSES.—An eligible entity may 3 use amounts received under a grant under this 4 section for— 5 (i) payroll costs; 6 (ii) payments on any covered rent ob- 7 ligation and common area maintenance 8 charges under a lease agreement; 9 (iii) any covered utility payment; 10 (iv) scheduled payments of interest or 11 principal on any covered mortgage obliga- 12 tion (which shall not include any prepay- 13 ment of principal on a covered mortgage 14 obligation); 15 (v) scheduled interest payments on 16 other scheduled debt as of February 15, 17 2020; 18 (vi) covered worker protection expend- 19 itures; 20 (vii) payments of principal on out- 21 standing loans; 22 (viii) payments made to independent 23 contractors, as reported on Form–1099 24 MISC; and 25 VerDate Sep 11 2014 20:33 Jun 05, 2021 Jkt 019200 PO 00000 Frm 00007 Fmt 6652 Sfmt 6201 E:\BILLS\S1613.IS S1613 pbinns on DSKJLVW7X2PROD with BILLS 8 •S 1613 IS (ix) other ordinary and necessary 1 business expenses, including— 2 (I) settling existing debts owed to 3 vendors; 4 (II) maintenance expenses; 5 (III) administrative costs; 6 (IV) taxes; 7 (V) operating leases; 8 (VI) advertising, fitness equip- 9 ment, subscription, and software ex- 10 penses that are within the scope of 11 the normal business practice of the el- 12 igible entity; 13 (VII) payments required for in- 14 surance on any insurance policy; 15 (VIII) capital expenditures or ex- 16 penses required under any State, 17 local, or Federal law or guideline re- 18 lated to social distancing; and 19 (IX) any other expenses that the 20 Administrator determines to be essen- 21 tial to maintaining the eligible entity. 22 (4) PROHIBITED EXPENSES.—An eligible entity 23 may not use amounts received under a grant under 24 this section— 25 VerDate Sep 11 2014 20:33 Jun 05, 2021 Jkt 019200 PO 00000 Frm 00008 Fmt 6652 Sfmt 6201 E:\BILLS\S1613.IS S1613 pbinns on DSKJLVW7X2PROD with BILLS 9 •S 1613 IS (A) to purchase real estate; 1 (B) for payments of interest or principal 2 on loans originated after February 15, 2020; 3 (C) to invest or re-lend funds; 4 (D) for contributions or expenditures to, or 5 on behalf of, any political party, party com- 6 mittee, or candidate for elective office; or 7 (E) for any other use as may be prohibited 8 by the Administrator. 9 (e) AUTHORIZATION OF APPROPRIATIONS.—There is 10 authorized to be appropriated $30,000,000,000 to carry 11 out this section. 12 Æ VerDate Sep 11 2014 20:33 Jun 05, 2021 Jkt 019200 PO 00000 Frm 00009 Fmt 6652 Sfmt 6301 E:\BILLS\S1613.IS S1613 pbinns on DSKJLVW7X2PROD with BILLS