Treasury Report Under Section 4026(b)(1)(C) of the CARES Act (September 1, 2021)
Summary
A U.S. Department of the Treasury report dated September 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. The totals row lists $2,677,983,560 disbursed, $1,318,557,622 outstanding, $1,377,376,806 in repaid loan principal and $39,668,317 in cash interest receipts. Yellow Corporation's $700,000,000 loan shows $709,010,093 outstanding and $13,538,685 in cash interest receipts, and Yellow Corporation repaid $230 in principal on June 13, 2021.
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 (September 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-09-01-2021-dcbbcaaae1/
, SHA-256 6a7cefb6833359d1c4953b14b2334b06c925326cf0d049037cfe4398f977dba4.Full text
Report Under Section 4026(b)(1)(C) of the CARES Act on
Loans to Air Carriers, Eligible Businesses, and National Security Businesses
September 1, 2021
Program Description
Section 4003 of the Coronavirus Aid, Relief and Economic Security Act (CARES Act)
authorized 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 provided:
(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 was authorized to be made in such form and
on such terms and conditions and contain such covenants, representations, warranties,
and requirements as the Treasury Secretary determined appropriate. However, the
CARES Act specified a number of requirements applicable to these loans. Among other
requirements under the statute, borrowers were required to 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 were also required to 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 required that Treasury receive a warrant or equity instrument
in the borrower if the borrower was a public company (unless Treasury determined that
the issuance of warrants or equity was infeasible, in which case the company was
required to provide a senior debt instrument), or a warrant, equity instrument, or senior
debt instrument if the borrower was 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.
(See next page)
2
DETAILED FINANCIAL STATEMENT
Total Total Total Repaid
Borrower Borrower Date of Loan Maturity Cash Interest
City2 State2 Authorized Disbursements3 Outstanding Loan Principal
Name Type1 Agreement Date Receipts
Loan Amount Loan Amount4
Aero Repair
Hydraulics, Station Fayetteville GA 10/26/2020 10/24/2025 $450,000 $450,000 $476,016 $0 $0
Inc. Operator
9/28/2020
Alaska Passenger (amended
Seattle WA 9/26/2025 $1,928,000,000 $135,000,000 $0 $135,000,000 $2,538,900
Airlines, Inc.5 Air Carrier 10/3/2020 and
1/15/2021)
Repair
Allflight
Station Kent WA 11/5/2020 11/5/2025 $4,721,260 $4,721,260 $4,721,260 $0 $182,862
Corporation
Operator
9/25/2020
American Passenger (amended
Fort Worth TX 6/30/2025 $7,500,000,000 $550,000,000 $0 $550,000,000 $10,257,500
Airlines, Inc.6 Air Carrier 10/21/2020 and
1/15/2021)
American Jet
Passenger
International Houston TX 11/5/2020 11/5/2025 $1,162,124 $1,162,124 $1,162,124 $0 $45,667
Air Carrier
Corporation
Aviation Repair
Management Station Fort Pierce FL 11/5/2020 11/5/2025 $4,026,705 $4,026,705 $4,085,433 $100,000 $0
& Repairs, Inc. Operator
Bristin Travel, Ticket
Fayetteville AR 10/26/2020 10/24/2025 $549,651 $549,651 $564,244 $0 $9,320
LLC Agent
11/5/2020
Caribbean Sun Passenger Virginia
FL (amended 11/5/2025 $6,768,749 $6,768,749 $7,010,424 $0 $0
Airlines, Inc.7 Air Carrier Gardens
12/7/2020)
Channel National
Camden NJ 11/12/2020 11/12/2025 $2,500,000 $2,500,000 $2,500,000 $0 $100,078
Logistics, LLC Security
3
Total Total Total Repaid
Borrower Borrower Date of Loan Maturity Cash Interest
City2 State2 Authorized Disbursements3 Outstanding Loan Principal
Name Type1 Agreement Date Receipts
Loan Amount Loan Amount4
Core Avionics
National
& Industrial, Tampa FL 11/5/2020 11/5/2025 $6,000,000 $6,000,000 $5,331,743 $800,000 $188,933
Security
Inc.8
Eastern Passenger
Wayne PA 10/28/2020 10/28/2025 $15,000,000 $15,000,000 $15,651,359 $0 $0
Airlines, LLC Air Carrier
11/9/2020
Elite Airways, Passenger
Portland ME (amended 11/7/2025 $2,630,274 $2,630,274 $2,727,238 $0 $0
LLC9 Air Carrier
12/1/2020)
9/28/2020
Frontier Passenger
Denver CO (amended 9/26/2025 $574,000,000 $150,000,000 $150,000,000 $0 $0
Airlines, Inc.10 Air Carrier
1/15/2021)
9/25/2020
Hawaiian Passenger (amended
Honolulu HI 6/28/2024 $622,000,000 $45,000,000 $0 $45,000,000 $450,450
Airlines, Inc.11 Air Carrier 10/23/2020 and
1/15/2021)
Island Wings, Cargo Air Ft.
FL 11/5/2020 11/5/2025 $294,350 $294,350 $305,884 $0 $0
Inc. Carrier Lauderdale
9/29/2020
JetBlue
Passenger Long Island (amended
Airways NY 9/29/2025 $1,948,000,000 $115,000,000 $115,000,000 $0 $0
Air Carrier City 11/3/2020 and
Corporation12
1/15/2021)
Legacy Cargo Air
Conroe TX 10/20/2020 10/20/2025 $1,817,306 $1,817,306 $1,923,743 $0 $0
Airways, LLC Carrier
Map Large, National
Atlanta GA 11/2/2020 10/31/2025 $10,000,000 $10,000,000 $10,553,320 $0 $0
Inc. Security
4
Total Total Total Repaid
Borrower Borrower Date of Loan Maturity Cash Interest
City2 State2 Authorized Disbursements3 Outstanding Loan Principal
Name Type1 Agreement Date Receipts
Loan Amount Loan Amount4
Meridian
National
Rapid Defense Pasadena CA 10/30/2020 10/30/2025 $7,100,000 $7,100,000 $7,415,707 $0 $79,019
Security
Group, LLC
Mesa Airlines, Passenger
Phoenix AZ 10/30/2020 10/30/2025 $195,000,000 $195,000,000 $199,382,778 $0 $0
Inc.13 Air Carrier
Ovation Travel Ticket
New York NY 10/15/2020 10/15/2025 $20,000,000 $20,000,000 $0 $20,294,156 $181,881
Group, Inc.14 Agent
oVio
National Newport
Technologies, CA 11/2/2020 10/31/2025 $1,186,900 $1,186,900 $1,252,574 $0 $0
Security Beach
Inc.
Republic Passenger
Indianapolis IN 11/6/2020 11/6/2025 $58,000,000 $58,000,000 $58,000,000 $0 $1,114,905
Airways, Inc.15 Air Carrier
Semahtronix, National
Flippin AR 11/13/2020 11/13/2025 $1,999,100 $1,999,100 $2,077,805 $0 $0
LLC Security
Semantic AI, National
San Diego CA 11/13/2020 11/13/2025 $506,300 $506,300 $526,722 $0 $0
Inc Security
9/29/2020
SkyWest Passenger (amended
St George UT 9/29/2025 $725,000,000 $60,000,000 $0 $60,000,000 $1,196,767
Airlines, Inc.16 Air Carrier 10/28/2020 and
1/15/2021)
Southern
Passenger Pompano
Airways FL 10/28/2020 10/28/2025 $1,838,501 $1,838,501 $1,838,501 $0 $78,745
Air Carrier Beach
Express, LLC
5
Total Total Total Repaid
Borrower Borrower Date of Loan Maturity Cash Interest
City2 State2 Authorized Disbursements3 Outstanding Loan Principal
Name Type1 Agreement Date Receipts
Loan Amount Loan Amount4
SpinLaunch, National
Long Beach CA 11/13/2020 11/13/2025 $2,519,200 $2,519,200 $2,519,200 $0 $98,025
Inc Security
Sun Country, Passenger
Minneapolis MN 10/26/2020 10/24/2025 $45,000,000 $45,000,000 $0 $46,182,421 $77,125
Inc.17 Air Carrier
Thomas Repair
Global Station Irvine CA 11/9/2020 11/7/2025 $1,400,000 $1,400,000 $1,455,670 $0 $0
Systems, LLC Operator
Repair
Timco Engine
Station Oscoda MI 11/5/2020 11/5/2025 $8,390,240 $8,390,240 $8,723,874 $0 $0
Center, Inc.
Operator
9/28/2020
(amended
United Passenger
Chicago IL 11/6/2020, 9/26/2025 $7,491,000,000 $520,000,000 $0 $520,000,000 $9,517,733
Airlines, Inc.18 Air Carrier
12/8/2020, and
1/15/2021)
Visual
National
Semantics, Austin TX 10/30/2020 10/30/2025 $1,053,200 $1,053,200 $1,100,031 $0 $11,722
Security
Inc.
Wiser Imagery National
Murfreesboro TN 10/30/2020 10/30/2025 $3,069,700 $3,069,700 $3,241,880 $0 $0
Services, LLC Security
Yellow National Overland
KS 7/7/2020 9/30/2024 $700,000,000 $700,000,000 $709,010,093 $230 $13,538,685
Corporation19 Security Park
TOTAL $21,890,983,560 $2,677,983,560 $1,318,557,622 $1,377,376,806 $39,668,317
Note: Data are as of the date of this report.
6
Footnotes
1. Only certain categories of entities were 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 locations provided are the addresses 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. Yellow Corporation repaid $230 in principal on June 13, 2021.
7
File and source
- File
- TREAS-4026b1CLoanReport09012021.pdf
- Size
- 158,364 bytes
- SHA-256
- 6a7cefb6833359d1c4953b14b2334b06c925326cf0d049037cfe4398f977dba4
- Original
- home.treasury.gov