Treasury Report Under Section 4026(b)(1)(C) of the CARES Act (April 1, 2021)
Summary
A U.S. Department of the Treasury report dated April 1, 2021, under Section 4026(b)(1)(C) of the CARES Act, on loans to air carriers, eligible businesses and national security businesses. It reflects 31 outstanding loans and four loans that have been repaid in full. According to its footnotes, Ovation Travel Group, Inc. paid in full on January 21, 2021, Hawaiian Airlines, Inc. on February 4, 2021, and American Airlines, Inc. and Sun Country, Inc. on March 25, 2021. The report also notes the February 4, 2021 announcement that YRC Worldwide, Inc. had changed its name to Yellow Corporation.
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“Treasury Report Under Section 4026(b)(1)(C) of the CARES Act (April 1, 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-04-01-2021-103aa74f89/
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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
April 1, 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) 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
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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 31 outstanding loans and four loans that
have been repaid in full.
(See next page)
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DETAILED FINANCIAL STATEMENT
Date of Loan Total Anticipated Total Outstanding Cash Interest
Borrower Name Borrower Type1 City2 State2 Maturity Date Disbursements3
Agreement Loan Amount Loan Amount4 Receipts
Repair Station
Aero Hydraulics, Inc. Fayetteville GA 10/26/2020 10/24/2025 $450,000 $450,000 $465,686 $0
Operator
9/28/2020
Passenger Air (amended
Alaska Airlines, Inc.5 Seattle WA 9/26/2025 $1,928,000,000 $135,000,000 $135,000,000 $0
Carrier 10/3/2020 and
1/15/2021)
Repair Station
Allflight Corporation Kent WA 11/5/2020 11/5/2025 $4,721,260 $4,721,260 $4,721,260 $102,265
Operator
9/25/2020
(amended
Passenger Air
American Airlines, Inc.6 Fort Worth TX 10/21/2020 6/30/2025 $7,500,000,000 $550,000,000 $0 $10,257,500
Carrier
and
1/15/2021)
American Jet
Passenger Air
International Houston TX 11/5/2020 11/5/2025 $1,162,124 $1,162,124 $1,181,648 $6,300
Carrier
Corporation
Aviation Management Repair Station
Fort Pierce FL 11/5/2020 11/5/2025 $4,026,705 $4,026,705 $4,116,551 $0
& Repairs, Inc. Operator
Bristin Travel, LLC Ticket Agent Fayetteville AR 10/26/2020 10/24/2025 $549,651 $549,651 $554,773 $9,320
11/5/2020
Caribbean Sun Airlines, Passenger Air Virginia
FL (amended 11/5/2025 $6,768,749 $6,768,749 $6,892,757 $0
Inc.7 Carrier Gardens
12/7/2020)
3
Date of Loan Total Anticipated Total Outstanding Cash Interest
Borrower Name Borrower Type1 City2 State2 Maturity Date Disbursements3
Agreement Loan Amount Loan Amount4 Receipts
Channel Logistics, LLC National Security Camden NJ 11/12/2020 11/12/2025 $2,500,000 $2,500,000 $2,500,000 $57,400
Core Avionics &
National Security Tampa FL 11/5/2020 11/5/2025 $6,000,000 $6,000,000 $6,130,800 $58,133
Industrial, Inc.
Passenger Air
Eastern Airlines, LLC Wayne PA 10/28/2020 10/28/2025 $15,000,000 $15,000,000 $15,388,658 $0
Carrier
11/9/2020
Passenger Air
Elite Airways, LLC8 Portland ME (amended 11/7/2025 $2,630,274 $2,630,274 $2,681,462 $0
Carrier
12/1/2020)
9/28/2020
Passenger Air
Frontier Airlines, Inc.15 Denver CO (amended 9/26/2025 $574,000,000 $150,000,000 $150,000,000 $0
Carrier
1/15/2021)
9/25/2020
(amended
Passenger Air
Hawaiian Airlines, Inc.9 Honolulu HI 10/23/2020 6/28/2024 $622,000,000 $45,000,000 $0 $450,450
Carrier
and
1/15/2021)
Ft.
Island Wings, Inc. Cargo Air Carrier FL 11/5/2020 11/5/2025 $294,350 $294,350 $300,750 $0
Lauderdale
9/29/2020
JetBlue Airways Passenger Air Long Island (amended
NY 9/29/2025 $1,948,000,000 $115,000,000 $115,000,000 $0
Corporation10 Carrier City 11/3/2020 and
1/15/2021)
Legacy Airways, LLC Cargo Air Carrier Conroe TX 10/20/2020 10/20/2025 $1,817,306 $1,817,306 $1,881,996 $0
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Date of Loan Total Anticipated Total Outstanding Cash Interest
Borrower Name Borrower Type1 City2 State2 Maturity Date Disbursements3
Agreement Loan Amount Loan Amount4 Receipts
Map Large, Inc. National Security Atlanta GA 11/2/2020 10/31/2025 $10,000,000 $10,000,000 $10,324,304 $0
Meridian Rapid Defense
National Security Pasadena CA 10/30/2020 10/30/2025 $7,100,000 $7,100,000 $7,254,780 $79,019
Group, LLC
Passenger Air
Mesa Airlines, Inc.11 Phoenix AZ 10/30/2020 10/30/2025 $195,000,000 $195,000,000 $197,525,164 $0
Carrier
Ovation Travel Group,
Ticket Agent New York NY 10/15/2020 10/15/2025 $20,000,000 $20,000,000 $0 $181,881
Inc.16
Newport
oVio Technologies, Inc. National Security CA 11/2/2020 10/31/2025 $1,186,900 $1,186,900 $1,225,392 $0
Beach
Passenger Air
Republic Airways, Inc.12 Indianapolis IN 11/6/2020 11/6/2025 $58,000,000 $58,000,000 $58,000,000 $569,447
Carrier
Semahtronix, LLC National Security Flippin AR 11/13/2020 11/13/2025 $1,999,100 $1,999,100 $2,042,930 $0
Semantic AI, Inc National Security San Diego CA 11/13/2020 11/13/2025 $506,300 $506,300 $517,881 $0
9/29/2020
(amended
Passenger Air
SkyWest Airlines, Inc.13 St George UT 10/28/2020 9/29/2025 $725,000,000 $60,000,000 $60,000,000 $0
Carrier
and
1/15/2021)
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Date of Loan Total Anticipated Total Outstanding Cash Interest
Borrower Name Borrower Type1 City2 State2 Maturity Date Disbursements3
Agreement Loan Amount Loan Amount4 Receipts
Southern Airways Passenger Air Pompano
FL 10/28/2020 10/28/2025 $1,838,501 $1,838,501 $1,838,501 $47,360
Express, LLC Carrier Beach
SpinLaunch, Inc. National Security Long Beach CA 11/13/2020 11/13/2025 $2,519,200 $2,519,200 $2,519,200 $55,019
Passenger Air
Sun Country, Inc.18 Minneapolis MN 10/26/2020 10/24/2025 $45,000,000 $45,000,000 $0 $77,125
Carrier
Thomas Global Repair Station
IRVINE CA 11/9/2020 11/7/2025 $1,400,000 $1,400,000 $1,431,237 $0
Systems, LLC Operator
Timco Engine Center, Repair Station
Oscoda MI 11/5/2020 11/5/2025 $8,390,240 $8,390,240 $8,577,447 $0
Inc. Operator
9/28/2020
(amended
Passenger Air 11/6/2020,
United Airlines, Inc.14 Chicago IL 9/26/2025 $7,491,000,000 $520,000,000 $520,000,000 $0
Carrier 12/8/2020,
and
1/15/2021)
Visual Semantics, Inc. National Security Austin TX 10/30/2020 10/30/2025 $1,053,200 $1,053,200 $1,076,160 $11,722
Wiser Imagery Services,
National Security Murfreesboro TN 10/30/2020 10/30/2025 $3,069,700 $3,069,700 $3,171,528 $0
LLC
Yellow Corporation17 National Security Overland Park KS 7/7/2020 9/30/2024 $700,000,000 $551,300,000 $555,701,619 $4,053,497
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Note: Data are as of the date of this report.
Footnotes
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, an amendment on October 30, 2020, increasing the maximum loan amount by $627
million, and an additional amendment on January 15, 2021, extending the termination date for Treasury’s commitment to May 28, 2021.
6. American Airlines, Inc. entered into a loan agreement for up to $5.477 billion on September 25, 2020, an amendment on October 21, 2020, increasing the maximum loan amount by $2.023
billion, and an additional amendment on January 15, 2021, extending the termination date for Treasury’s commitment to May 28, 2021. American Airlines, Inc. paid in full all outstanding
principal and interest on March 25, 2021.
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, an amendment on October 23, 2020, increasing the maximum loan amount by $202 million,
and an additional amendment on January 15, 2021, extending the termination date for Treasury’s commitment to May 28, 2021. Hawaiian Airlines, Inc. paid in full all principal and interest on
February 4, 2021.
10. JetBlue Airways Corporation entered into a loan agreement for up to $1.14 billion on September 29, 2020, an amendment on November 3, 2020, increasing the maximum loan amount by
$808 million, and an additional amendment on January 15, 2021, extending the termination date for Treasury’s commitment to May 28, 2021.
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.
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.
13. SkyWest Airlines, Inc. entered into a loan agreement for up to $573 million on September 29, 2020, an amendment on October 28, 2020, increasing the maximum loan amount by $152
million, and an additional amendment on January 15, 2021, extending the termination date for Treasury’s commitment to May 28, 2021.
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, an amendment on December 8, 2020, reducing the maximum loan amount by $9 million, and an additional amendment on January 15, 2021, extending the termination date for
Treasury’s commitment to May 28, 2021.
15. Frontier Airlines, Inc. entered into a loan agreement for up to $574 million on September 28, 2020 and an amendment on January 15, 2021, extending the termination date for Treasury’s
commitment to May 28, 2021.
16. Ovation Travel Group, Inc. paid in full all outstanding principal and interest on January 21, 2021.
17. It was announced on February 4, 2021 that YRC Worldwide, Inc. had changed its name to Yellow Corporation.
18. Sun Country, Inc. paid in full all outstanding principal and interest on March 25, 2021.
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