Crunch Fitness CEO Jim Rowley joined TheStreet’s Katherine Ross to discuss how Crunch is faring during the economic shutdown caused by the coronavirus pandemic.
When asked how his balance sheet is faring, Rowley said that it’s been tough for Crunch since they’ve been shut down since March 16.
And that means that Crunch hasn’t been able to bring in any revenue since March 16 as gyms have been shuttered and gym memberships put on pause.
Rowley also said that his business did not qualify for a payroll protection program loan through the Small Business Administration.
So, let’s give you an idea of what the PPP is.
The Paycheck Protection Program was one of the most high profile parts of the $2.2 trillion CARES Act. It establishes what is called a 7(a) loan, a lending program administered by the Small Business Administration (the SBA).
Under the PPP any small business that has been in operation since February 15 can get a low-interest, short-term loan to cover losses caused by the quarantines and the coronavirus itself. Freelancers, contractors and other self-employed individuals can apply for these loans as well, making them de-facto small businesses for the purpose of this crisis. Borrowers can use this money to cover payroll and benefit costs, as well as certain overhead such as rent, mortgages, utilities, and interest on debt taken out before February 15, 2020, explained TheStreet’s Eric Reed.
Rowley expressed his frustration about not being able to qualify.
He added that he didn’t understand why Crunch Fitness was able to have an emergency plan, but the government did not seem prepared to handle this situation.
Watch the full video above for more.
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