Treasury Report Under Section 4026(b)(1)(C) of the CARES Act (January 4, 2021)
Summary
A U.S. Department of the Treasury report under Section 4026(b)(1)(C) of the CARES Act, dated January 4, 2021, summarizing its loans to air carriers, eligible businesses and national security businesses. The report reflects 35 outstanding loans. Its financial statement lists American Airlines, Inc. with a $7,500,000,000 loan amount and $550,000,000 in total anticipated disbursements, and YRC Worldwide, Inc. with a $700,000,000 loan amount and $551,300,000 in total anticipated disbursements. Footnotes record amendments increasing the maximum loans to Alaska Airlines, American Airlines, Hawaiian Airlines, JetBlue Airways and SkyWest Airlines, and state that remaining Treasury commitments of $5 million and $19 million terminated on December 15, 2020.
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“Treasury Report Under Section 4026(b)(1)(C) of the CARES Act (January 4, 2021).”
Original at home.treasury.gov. Archived at Pandemic Darlings, https://pandemicdarlings.com/source-documents/u-s-department-of-the-treasury-4026-b-1-c-loan-report-01-04-2021-ffcca1df87/
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Report Under Section 4026(b)(1)(C) of the CARES Act on
Loans to Air Carriers, Eligible Businesses, and National Security Businesses
January 4, 2021
Program Description
Section 4003 of the Coronavirus Aid, Relief and Economic Security Act (CARES Act)
authorizes the Treasury Department to make loans, loan guarantees, and other
investments to provide liquidity to eligible businesses related to losses incurred as a result
of coronavirus.
The CARES Act provides:
(1) up to $25 billion for loans and loan guarantees for passenger air carriers; eligible
businesses that are certified under 14 CFR part 145 and approved to perform
inspection, repair, replace, or overhaul services; and ticket agents (as defined in
49 U.S.C. § 40102);
(2) up to $4 billion for loans and loan guarantees for cargo air carriers; and
(3) up to $17 billion for loans and loan guarantees for businesses critical to
maintaining national security.
A loan or loan guarantee under section 4003 may be made in such form and on such
terms and conditions and contain such covenants, representations, warranties, and
requirements as the Treasury Secretary determines appropriate. However, the CARES
Act specifies a number of requirements applicable to these loans. Among other
requirements under the statute, borrowers must agree to maintain employment levels as
of March 24, 2020 to the extent practicable, and in any case not reduce their employment
levels by more than 10 percent from the levels on such date, until September 30, 2020.
Borrowers must also agree to certain restrictions on employee compensation; agree not
to repurchase stock, except to the extent required under a contractual obligation in effect
as of March 27, 2020; and agree not to pay dividends or make other capital distributions
with respect to the borrower’s common stock until 12 months after the loan has been
repaid.
In addition, the CARES Act requires that Treasury receive a warrant or equity instrument
in the borrower if the borrower is a public company (unless Treasury determines that the
issuance of warrants or equity is infeasible, in which case the company must provide a
senior debt instrument), or a warrant, equity instrument, or senior debt instrument if the
borrower is a private company, to compensate taxpayers.
Reporting Requirements
The CARES Act requires Treasury to make a number of disclosures regarding its loans
and loan guarantees under section 4003 of the CARES Act:
1
(1) under section 4026(a) of the CARES Act, not later than 72 hours after any
transaction under section 4003(b)(1), (2), or (3) of the CARES Act, Treasury must
publish on its website a description of the transaction, certain transaction terms,
and transaction documentation;
(2) under section 4026(b)(1)(A) of the CARES Act, not later than seven days after any
loan or loan guarantee under section 4003(b)(1), (2), or (3), Treasury must submit
to Congress a report summarizing the actions taken under those provisions and
certain related financial information;
(3) under section 4026(b)(1)(B) of the CARES Act, not later than seven days after
delivering the report to Congress described above, Treasury must publish the
report on its website; and
(4) under section 4026(b)(1)(C) of the CARES Act, every 30 days while a loan or loan
guarantee under section 4003(b)(1), (2), or (3) is outstanding, Treasury must
publish on its website a report summarizing its reports to Congress described
above.
Treasury has published the information and reports described above on its website at
https://home.treasury.gov/policy-issues/cares/preserving-jobs-for-american-
industry/loans-to-air-carriers-eligible-businesses-and-national-security-businesses.
Current Report
This report summarizes information about transactions under sections 4003(b)(1), (2),
and (3) of the CARES Act. This report reflects 35 outstanding loans.
(See next page)
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DETAILED FINANCIAL STATEMENT
Total
Borrower Date of Loan Maturity Total Anticipated Outstanding Cash Interest
Name Borrower Type1 City2 State2 Agreement Date Loan Amount Disbursements3 Loan Amount4 Receipts
Aero Repair Station
Fayetteville GA 10/26/2020 10/24/2025 $450,000 $450,000 $455,751 $0
Hydraulics Inc. Operator
9/28/2020
Alaska Airlines, Passenger Air
Seattle WA (amended 9/26/2025 $1,928,000,000 $135,000,000 $135,000,000 $0
Inc.5 Carrier
10/3/2020)
Allflight Repair Station
Kent WA 11/5/2020 11/5/2025 $4,721,260 $4,721,260 $4,721,260 $22,948
Corporation Operator
9/25/2020
American Passenger Air
Fort Worth TX (amended 6/30/2025 $7,500,000,000 $550,000,000 $550,000,000 $0
Airlines, Inc.6 Carrier
10/21/2020)
American Jet
Passenger Air
International Houston TX 11/5/2020 11/5/2025 $1,162,124 $1,162,124 $1,162,124 $6,300
Carrier
Corporation
Aviation
Repair Station
Management & Fort Pierce FL 11/5/2020 11/5/2025 $4,026,705 $4,026,705 $4,048,535 $0
Operator
Repairs, Inc.
Bristin Travel,
Ticket Agent Fayetteville AR 10/26/2020 10/24/2025 $549,651 $549,651 $554,773 $0
LLC
11/5/2020
Caribbean Sun Passenger Air Virginia
FL (amended 11/5/2025 $6,768,749 $6,768,749 $6,778,872 $0
Airlines, Inc.7 Carrier Garden
12/7/2020)
3
Total
Borrower Date of Loan Maturity Total Anticipated Outstanding Cash Interest
Name Borrower Type1 City2 State2 Agreement Date Loan Amount Disbursements3 Loan Amount4 Receipts
Channel
National Security Camden NJ 11/12/2020 11/12/2025 $2,500,000 $2,500,000 $2,500,000 $15,400
Logistics, LLC
Core Avionics
& Industrial, National Security Tampa FL 11/5/2020 11/5/2025 $6,000,000 $6,000,000 $6,000,000 $58,133
Inc.
Eastern Passenger Air
Wayne PA 10/28/2020 10/28/2025 $15,000,000 $15,000,000 $15,134,400 $0
Airlines, LLC Carrier
11/9/2020
Elite Airways, Passenger Air
Portland ME (amended 11/7/2025 $2,630,274 $2,630,274 $2,637,158 $0
LLC8 Carrier
12/1/2020)
Frontier Passenger Air
Denver CO 9/28/2020 9/26/2025 $574,000,000 $150,000,000 $150,000,000 $0
Airlines, Inc. Carrier
9/25/2020
Hawaiian Passenger Air
Honolulu HI (amended 6/28/2024 $622,000,000 $45,000,000 $45,000,000 $0
Airlines, Inc.9 Carrier
10/23/2020)
Island Wings, Ft.
Cargo Air Carrier FL 11/5/2020 11/5/2025 $294,350 $294,350 $295,781 $0
Inc. Lauderdale
JetBlue 9/29/2020
Passenger Air Long Island
Airways NY (amended 9/29/2025 $1,948,000,000 $115,000,000 $115,000,000 $0
Carrier City
Corporation10 11/3/2020)
Legacy
Cargo Air Carrier Conroe TX 10/20/2020 10/20/2025 $1,817,306 $1,817,306 $1,841,844 $0
Airways, LLC
4
Total
Borrower Date of Loan Maturity Total Anticipated Outstanding Cash Interest
Name Borrower Type1 City2 State2 Agreement Date Loan Amount Disbursements3 Loan Amount4 Receipts
Map Large, Inc. National Security Atlanta GA 11/2/2020 10/31/2025 $10,000,000 $10,000,000 $10,104,036 $0
Meridian Rapid
Defense National Security Pasadena CA 10/30/2020 10/30/2025 $7,100,000 $7,100,000 $7,100,000 $79,019
Group, LLC
Mesa Airlines, Passenger Air
Phoenix AZ 10/30/2020 10/30/2025 $195,000,000 $195,000,000 $195,705,106 $0
Inc.11 Carrier
Ovation Travel
Ticket Agent New York NY 10/15/2020 10/15/2025 $20,000,000 $20,000,000 $20,294,156 $0
Group, Inc.
oVio
Newport
Technologies, National Security CA 11/2/2020 10/31/2025 $1,186,900 $1,186,900 $1,199,248 $0
Beach
Inc.
Republic Passenger Air
Indianapolis IN 11/6/2020 11/6/2025 $58,000,000 $58,000,000 $58,000,000 $30,047
Airways, Inc.12 Carrier
Semahtronix,
National Security Flippin AR 11/13/2020 11/13/2025 $1,999,100 $1,999,100 $2,009,175 $0
LLC
Semantic AI,
National Security San Diego CA 11/13/2020 11/13/2025 $506,300 $506,300 $509,324 $0
Inc.
9/29/2020
SkyWest Passenger Air
St. George UT (amended 9/29/2025 $725,000,000 $60,000,000 $60,000,000 $0
Airlines, Inc.13 Carrier
10/28/2020)
5
Total
Borrower Date of Loan Maturity Total Anticipated Outstanding Cash Interest
Name Borrower Type1 City2 State2 Agreement Date Loan Amount Disbursements3 Loan Amount4 Receipts
Southern
Passenger Air Pompano
Airways FL 10/28/2020 10/28/2025 $1,838,501 $1,838,501 $1,838,501 $16,473
Carrier Beach
Express, LLC.
SpinLaunch,
National Security Long Beach CA 11/13/2020 11/13/2025 $2,519,200 $2,519,200 $2,519,200 $12,697
Inc.
Sun Country, Passenger Air
Minneapolis MN 10/26/2020 10/24/2025 $45,000,000 $45,000,000 $45,419,375 $0
Inc. Carrier
Thomas Global Repair Station
Irvine CA 11/9/2020 11/7/2025 $1,400,000 $1,400,000 $1,407,590 $0
Systems, LLC Operator
Timco Engine Repair Station
Oscoda MI 11/5/2020 11/5/2025 $8,390,240 $8,390,240 $8,435,727 $0
Center, Inc. Operator
9/28/2020
United Airlines, Passenger Air (amended
Chicago IL 9/26/2025 $7,491,000,000 $520,000,000 $520,000,000 $0
Inc.14 Carrier 11/6/2020 and
12/8/2020)
Visual
National Security Austin TX 10/30/2020 10/30/2025 $1,053,200 $1,053,200 $1,053,200 $11,722
Semantics, Inc.
Wiser Imagery
National Security Murfreesboro TN 10/30/2020 10/30/2025 $3,069,700 $3,069,700 $3,103,864 $0
Services, LLC
YRC Overland
National Security KS 7/7/2020 9/30/2024 $700,000,000 $551,300,000 $553,594,683 $1,437,191
Worldwide, Inc. Park
6
Note: Data are as of the date of this report.
1. Only certain categories of entities are eligible to receive loans under sections 4003(b)(1), (2), and (3) of the CARES Act. Under those provisions, a borrower must
be a passenger air carrier; a business that is certified under 14 CFR part 145 and approved to perform inspection, repair, replace, or overhaul services; a ticket
agent (as defined in 49 U.S.C. 40102); a cargo air carrier; or a business critical to maintaining national security.
2. The location provided is the address included by the borrowers in their applications and may not indicate all locations in which a borrower operates.
3. “Disbursements” includes all loan disbursements.
4. “Total Outstanding Loan Amount” includes all loan disbursements and increases of loan principal amount arising from payment-in-kind (PIK) interest, less any
repayments of principal.
5. Alaska Airlines, Inc. entered into a loan agreement for up to $1.301 billion on September 28, 2020, and an amendment on October 30, 2020, increasing the
maximum loan amount by $627 million.
6. American Airlines, Inc. entered into a loan agreement for up to $5.477 billion on September 25, 2020, and an amendment on October 21, 2020, increasing the
maximum loan amount by $2.023 billion.
7. Caribbean Sun Airlines, Inc. entered into a loan agreement for up to $15 million on November 5, 2020, and an amendment on December 7, 2020, extending the
termination date for Treasury’s commitment to December 7, 2020, and decreasing the maximum loan amount by $8,231,251.
8. Elite Airways, LLC entered into a loan agreement for up to $2,630,274 on November 9, 2020, and an amendment on December 1, 2020, extending the termination
date for Treasury’s commitment to December 1, 2020.
9. Hawaiian Airlines entered into a loan agreement for up to $420 million on September 25, 2020, and an amendment on October 23, 2020, increasing the maximum
loan amount by $202 million.
10. JetBlue Airways Corporation entered into a loan agreement for up to $1.14 billion on September 29, 2020, and an amendment on November 3, 2020, increasing
the maximum loan amount by $808 million.
11. Mesa Airlines, Inc. entered into a loan agreement for up to $200 million on October 30, 2020, and elected to draw $43 million on October 30, 2020, and $152
million on November 13, 2020. Treasury’s remaining $5 million commitment terminated on December 15, 2020.
12. Republic Airlines, Inc. entered into a loan agreement for up to $77 million on November 6, 2020, and elected to draw $58 million on December 7, 2020.
Treasury’s remaining $19 million commitment terminated on December 15, 2020.
13. SkyWest Airlines, Inc. entered into a loan agreement for up to $573 million on September 29, 2020, and an amendment on October 28, 2020, increasing the
maximum loan amount by $152 million.
14. United Airlines, Inc. entered into a loan agreement for up to $5.17 billion on September 28, 2020, an amendment on November 6, 2020, increasing the maximum
loan amount by $2.33 billion, and an additional amendment on December 8, 2020, reducing the maximum loan amount by $9 million.
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