Treasury Report Under Section 4026(b)(1)(C) of the CARES Act (July 1, 2021)
Summary
A U.S. Department of the Treasury report dated July 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 28 outstanding loans and seven loans that have been repaid in full. Alaska Airlines, Inc. paid in full all outstanding principal and interest on June 3, 2021, and Core Avionics & Industrial, Inc. repaid $800,000 in principal on June 8, 2021. The extended period for certain air carrier borrowers to request additional disbursements expired on May 28, 2021. The Yellow Corporation loan shows $681,100,000 in total anticipated disbursements and $687,782,537 outstanding.
Summary drafted by a model from the document's text below and checked by script against that text before publication. It is a navigation aid, not a reading of what the document proves. Where AI is used
Cite this document
“Treasury Report Under Section 4026(b)(1)(C) of the CARES Act (July 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-07-01-2021-947cefad4d/
, SHA-256 32ef7f3e51dc83930ec8dc461076aa4c96eba776dc62808923548d54298d4948.Full text
Report Under Section 4026(b)(1)(C) of the CARES Act on
Loans to Air Carriers, Eligible Businesses, and National Security Businesses
July 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
1
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 28 outstanding loans and seven loans that
have been repaid in full. The extended period for certain air carrier borrowers to request
additional disbursements expired on May 28, 2021.
(See next page)
2
DETAILED FINANCIAL STATEMENT
Total
Date of Loan Total Loan Cash Interest
Borrower Name Borrower Type1 City2 State2 Maturity Date Disbursements3 Outstanding
Agreement Amount Receipts
Loan Amount4
Repair Station
Aero Hydraulics, Inc. Fayetteville GA 10/26/2020 10/24/2025 $450,000 $450,000 $476,016 $0
Operator
9/28/2020
Passenger Air (amended
Alaska Airlines, Inc.5 Seattle WA 9/26/2025 $1,928,000,000 $135,000,000 $0 $2,538,900
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 $182,862
Operator
9/25/2020
American Airlines, Passenger Air (amended
Fort Worth TX 6/30/2025 $7,500,000,000 $550,000,000 $0 $10,257,500
Inc.6 Carrier 10/21/2020 and
1/15/2021)
American Jet
Passenger Air
International Houston TX 11/5/2020 11/5/2025 $1,162,124 $1,162,124 $1,162,124 $45,667
Carrier
Corporation
Aviation
Repair Station
Management & Fort Pierce FL 11/5/2020 11/5/2025 $4,026,705 $4,026,705 $4,085,433 $0
Operator
Repairs, Inc.
Bristin Travel, LLC Ticket Agent Fayetteville AR 10/26/2020 10/24/2025 $549,651 $549,651 $564,244 $9,320
11/5/2020
Caribbean Sun Passenger Air Virginia
FL (amended 11/5/2025 $6,768,749 $6,768,749 $7,010,424 $0
Airlines, Inc.7 Carrier Gardens
12/7/2020)
Channel Logistics,
National Security Camden NJ 11/12/2020 11/12/2025 $2,500,000 $2,500,000 $2,500,000 $100,078
LLC
3
Total
Date of Loan Total Loan Cash Interest
Borrower Name Borrower Type1 City2 State2 Maturity Date Disbursements3 Outstanding
Agreement Amount Receipts
Loan Amount4
Core Avionics &
National Security Tampa FL 11/5/2020 11/5/2025 $6,000,000 $6,000,000 $5,331,743 $188,933
Industrial, Inc.8
Eastern Airlines, Passenger Air
Wayne PA 10/28/2020 10/28/2025 $15,000,000 $15,000,000 $15,651,359 $0
LLC Carrier
11/9/2020
Passenger Air
Elite Airways, LLC9 Portland ME (amended 11/7/2025 $2,630,274 $2,630,274 $2,727,238 $0
Carrier
12/1/2020)
9/28/2020
Frontier Airlines, Passenger Air
Denver CO (amended 9/26/2025 $574,000,000 $150,000,000 $150,000,000 $0
Inc.10 Carrier
1/15/2021)
9/25/2020
Hawaiian Airlines, Passenger Air (amended
Honolulu HI 6/28/2024 $622,000,000 $45,000,000 $0 $450,450
Inc.11 Carrier 10/23/2020 and
1/15/2021)
Ft.
Island Wings, Inc. Cargo Air Carrier FL 11/5/2020 11/5/2025 $294,350 $294,350 $305,884 $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
Corporation12 Carrier City 11/3/2020 and
1/15/2021)
Legacy Airways,
Cargo Air Carrier Conroe TX 10/20/2020 10/20/2025 $1,817,306 $1,817,306 $1,923,743 $0
LLC
Map Large, Inc. National Security Atlanta GA 11/2/2020 10/31/2025 $10,000,000 $10,000,000 $10,553,320 $0
4
Total
Date of Loan Total Loan Cash Interest
Borrower Name Borrower Type1 City2 State2 Maturity Date Disbursements3 Outstanding
Agreement Amount Receipts
Loan Amount4
Meridian Rapid
National Security Pasadena CA 10/30/2020 10/30/2025 $7,100,000 $7,100,000 $7,415,707 $79,019
Defense Group, LLC
Passenger Air
Mesa Airlines, Inc.13 Phoenix AZ 10/30/2020 10/30/2025 $195,000,000 $195,000,000 $199,382,778 $0
Carrier
Ovation Travel
Ticket Agent New York NY 10/15/2020 10/15/2025 $20,000,000 $20,000,000 $0 $181,881
Group, Inc.14
oVio Technologies, Newport
National Security CA 11/2/2020 10/31/2025 $1,186,900 $1,186,900 $1,252,574 $0
Inc. Beach
Republic Airways, Passenger Air
Indianapolis IN 11/6/2020 11/6/2025 $58,000,000 $58,000,000 $58,000,000 $1,114,905
Inc.15 Carrier
Semahtronix, LLC National Security Flippin AR 11/13/2020 11/13/2025 $1,999,100 $1,999,100 $2,077,805 $0
Semantic AI, Inc National Security San Diego CA 11/13/2020 11/13/2025 $506,300 $506,300 $526,722 $0
9/29/2020
SkyWest Airlines, Passenger Air (amended
St George UT 9/29/2025 $725,000,000 $60,000,000 $0 $1,196,767
Inc.16 Carrier 10/28/2020 and
1/15/2021)
Southern Airways Passenger Air Pompano
FL 10/28/2020 10/28/2025 $1,838,501 $1,838,501 $1,838,501 $78,745
Express, LLC Carrier Beach
5
Total
Date of Loan Total Loan Cash Interest
Borrower Name Borrower Type1 City2 State2 Maturity Date Disbursements3 Outstanding
Agreement Amount Receipts
Loan Amount4
SpinLaunch, Inc National Security Long Beach CA 11/13/2020 11/13/2025 $2,519,200 $2,519,200 $2,519,200 $98,025
Passenger Air
Sun Country, Inc.17 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 $1,455,670 $0
Systems, LLC Operator
Timco Engine Repair Station
Oscoda MI 11/5/2020 11/5/2025 $8,390,240 $8,390,240 $8,723,874 $0
Center, Inc. Operator
9/28/2020
(amended
United Airlines, Passenger Air
Chicago IL 11/6/2020, 9/26/2025 $7,491,000,000 $520,000,000 $0 $9,517,733
Inc.18 Carrier
12/8/2020, and
1/15/2021)
Visual Semantics,
National Security Austin TX 10/30/2020 10/30/2025 $1,053,200 $1,053,200 $1,100,031 $11,722
Inc.
Wiser Imagery
National Security Murfreesboro TN 10/30/2020 10/30/2025 $3,069,700 $3,069,700 $3,241,880 $0
Services, LLC
Overland
Yellow Corporation19 National Security KS 7/7/2020 9/30/2024 $700,000,000 $681,100,000 $687,782,537 $8,008,368
Park
Note: Data are as of the date of this report.
Footnotes
6
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. Alaska Airlines, Inc. paid in full all outstanding
principal and interest on June 3, 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 24, 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. Core Avionics & Industrial, Inc. repaid $800,000 in principal on June 8, 2021.
9. 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.
10. 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.
11. 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.
12. 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.
13. 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.
14. Ovation Travel Group, Inc. paid in full all outstanding principal and interest on January 21, 2021.
15. 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.
16. 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. SkyWest Airlines, Inc. paid in full all outstanding
principal and interest on May 10, 2021.
17. Sun Country, Inc. paid in full all outstanding principal and interest on March 24, 2021.
18. 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. United Airlines paid in full all outstanding principal and interest on April 20, 2021.
19. It was announced on February 4, 2021 that YRC Worldwide, Inc. had changed its name to Yellow Corporation.
7
File and source
- File
- TREAS-4026b1CLoanReport07012021.pdf
- Size
- 214,748 bytes
- SHA-256
- 32ef7f3e51dc83930ec8dc461076aa4c96eba776dc62808923548d54298d4948
- Original
- home.treasury.gov