Treasury Report Under Section 4026(b)(1)(C) of the CARES Act (October 1, 2022)
Summary
A U.S. Department of the Treasury report dated October 1, 2022, under Section 4026(b)(1)(C) of the CARES Act on loans to air carriers, eligible businesses and national security businesses. It reflects 21 outstanding loans and 14 loans that have been repaid in full. The totals row lists $2,677,983,560 disbursed, $1,009,482,141 outstanding, $1,711,647,357 in repaid loan principal and $80,493,488 in cash interest receipts. Yellow Corporation's $700,000,000 loan shows $721,104,618 outstanding and $39,976,174 in cash interest receipts, and a footnote gives current outstanding principal of $316 million and $400 million on its two tranches.
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“Treasury Report Under Section 4026(b)(1)(C) of the CARES Act (October 1, 2022).”
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-10-01-2022-25d4efb708/
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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
October 1, 2022
Program Description
Section 4003 of Division A 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 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:
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(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 21 outstanding loans and 14 loans that
have been repaid in full.
(See next page)
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DETAILED FINANCIAL STATEMENT
Date of Total Total Repaid
Borrower Borrower Maturity Total Outstanding Cash Interest
City2 State2 Loan Authorized Disbursements3 Loan Principal
Name Type1 Date Loan Amount4 Receipts
Agreement Loan Amount
Aero Repair
Hydraulics, Station Fayetteville GA 10/26/2020 10/24/2025 $450,000 $450,000 $533,753 $0 $0
Inc. Operator
9/28/2020
(amended
Alaska Passenger
Seattle WA 10/3/2020 9/26/2025 $1,928,000,000 $135,000,000 $0 $135,000,000 $2,538,900
Airlines, Inc.5 Air Carrier
and
1/15/2021)
Repair
Allflight
Station Kent WA 11/5/2020 11/5/2025 $4,721,260 $4,721,260 $4,621,478 $99,782 $609,984
Corporation
Operator
9/25/2020
(amended
American Passenger
Fort Worth TX 10/21/2020 6/30/2025 $7,500,000,000 $550,000,000 $0 $550,000,000 $10,257,500
Airlines, Inc.6 Air Carrier
and
1/15/2021)
American Jet
Passenger
International Houston TX 11/5/2020 11/5/2025 $1,162,124 $1,162,124 $1,181,571 $0 $132,406
Air Carrier
Corporation
Aviation
Repair
Management
Station Fort Pierce FL 11/5/2020 11/5/2025 $4,026,705 $4,026,705 $4,468,416 $100,000 $0
& Repairs,
Operator
Inc.7
Bristin Travel, Ticket
Fayetteville AR 10/26/2020 10/24/2025 $549,651 $549,651 $617,138 $0 $9,320
LLC Agent
Caribbean 11/5/2020
Passenger Virginia
Sun Airlines, FL (amended 11/5/2025 $6,768,749 $6,768,749 $7,667,606 $0 $0
Air Carrier Gardens
Inc.8 12/7/2020)
3
Date of Total Total Repaid
Borrower Borrower Maturity Total Outstanding Cash Interest
City2 State2 Loan Authorized Disbursements3 Loan Principal
Name Type1 Date Loan Amount4 Receipts
Agreement Loan Amount
Channel
National
Logistics, Camden NJ 11/12/2020 11/12/2025 $2,500,000 $2,500,000 $2,688,869 $0 $142,372
Security
LLC
Core Avionics
National
& Industrial, Tampa FL 11/5/2020 11/5/2025 $6,000,000 $6,000,000 $0 $6,489,033 $213,998
Security
Inc.9
Eastern Passenger
Wayne PA 10/28/2020 10/28/2025 $15,000,000 $15,000,000 $17,118,573 $0 $0
Airlines, LLC Air Carrier
11/9/2020
Elite Airways, Passenger
Portland ME (amended 11/7/2025 $2,630,274 $2,630,274 $2,982,899 $0 $0
LLC10 Air Carrier
12/1/2020)
9/28/2020
Frontier Passenger
Denver CO (amended 9/26/2025 $574,000,000 $150,000,000 $0 $150,000,000 $5,548,667
Airlines, Inc.11 Air Carrier
1/15/2021)
9/25/2020
(amended
Hawaiian Passenger
Honolulu HI 10/23/2020 6/28/2024 $622,000,000 $45,000,000 $0 $45,000,000 $450,450
Airlines, Inc.12 Air Carrier
and
1/15/2021)
Island Wings, Cargo Air Ft.
FL 11/5/2020 11/5/2025 $294,350 $294,350 $334,559 $0 $0
Inc. Carrier Lauderdale
9/29/2020
JetBlue (amended
Passenger Long Island
Airways NY 11/3/2020 9/29/2025 $1,948,000,000 $115,000,000 $0 $115,000,000 $3,330,113
Air Carrier City
Corporation13 and
1/15/2021)
Legacy Cargo Air
Conroe TX 10/20/2020 10/20/2025 $1,817,306 $1,817,306 $2,157,078 $0 $0
Airways, LLC Carrier
4
Date of Total Total Repaid
Borrower Borrower Maturity Total Outstanding Cash Interest
City2 State2 Loan Authorized Disbursements3 Loan Principal
Name Type1 Date Loan Amount4 Receipts
Agreement Loan Amount
Map Large, National
Atlanta GA 11/2/2020 10/31/2025 $10,000,000 $10,000,000 $11,833,359 $0 $0
Inc. Security
Meridian
Rapid National
Pasadena CA 10/30/2020 10/30/2025 $7,100,000 $7,100,000 $8,315,177 $0 $79,019
Defense Security
Group, LLC
Mesa Passenger
Phoenix AZ 10/30/2020 10/30/2025 $195,000,000 $195,000,000 $204,947,017 $0 $5,059,459
Airlines, Inc.14 Air Carrier
Ovation
Ticket
Travel Group, New York NY 10/15/2020 10/15/2025 $20,000,000 $20,000,000 $0 $20,294,156 $181,881
Agent
Inc.15
oVio
National Newport
Technologies, CA 11/2/2020 10/31/2025 $1,186,900 $1,186,900 $1,404,501 $0 $0
Security Beach
Inc.
Republic
Passenger
Airways, Indianapolis IN 11/6/2020 11/6/2025 $58,000,000 $58,000,000 $0 $58,000,000 $1,622,308
Air Carrier
Inc.16
Semahtronix, National
Flippin AR 11/13/2020 11/13/2025 $1,999,100 $1,999,100 $0 $2,112,957 $777
LLC17 Security
Semantic AI, National
San Diego CA 11/13/2020 11/13/2025 $506,300 $506,300 $576,099 $0 $0
Inc. Security
9/29/2020
(amended
SkyWest Passenger
St George UT 10/28/2020 9/29/2025 $725,000,000 $60,000,000 $0 $60,000,000 $1,196,767
Airlines, Inc.18 Air Carrier
and
1/15/2021)
5
Date of Total Total Repaid
Borrower Borrower Maturity Total Outstanding Cash Interest
City2 State2 Loan Authorized Disbursements3 Loan Principal
Name Type1 Date Loan Amount4 Receipts
Agreement Loan Amount
Southern
Airways Passenger Pompano
FL 10/28/2020 10/28/2025 $1,838,501 $1,838,501 $0 $1,838,501 $188,254
Express, Air Carrier Beach
LLC19
SpinLaunch, National
Long Beach CA 11/13/2020 11/13/2025 $2,519,200 $2,519,200 $2,519,200 $0 $325,815
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.20 Air Carrier
Thomas
Repair
Global
Station Irvine CA 11/9/2020 11/7/2025 $1,400,000 $1,400,000 $0 $1,530,278 $22,745
Systems,
Operator
LLC21
Repair
Timco Engine
Station Oscoda MI 11/5/2020 11/5/2025 $8,390,240 $8,390,240 $9,541,680 $0 $0
Center, Inc.
Operator
9/28/2020
(amended
United Passenger 11/6/2020,
Chicago IL 9/26/2025 $7,491,000,000 $520,000,000 $0 $520,000,000 $9,517,733
Airlines, Inc.22 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 $1,233,457 $0 $11,722
Security
Inc.
Wiser
National
Imagery Murfreesboro TN 10/30/2020 10/30/2025 $3,069,700 $3,069,700 $3,635,096 $0 $0
Security
Services, LLC
Yellow National Overland
KS 7/7/2020 9/30/2024 $700,000,000 $700,000,000 $721,104,618 $230 $39,976,174
Corporation23 Security Park
6
Date of Total Total Repaid
Borrower Borrower Maturity Total Outstanding Cash Interest
City2 State2 Loan Authorized Disbursements3 Loan Principal
Name Type1 Date Loan Amount4 Receipts
Agreement Loan Amount
TOTAL $21,890,983,560 $2,677,983,560 $1,009,482,141 $1,711,647,357 $80,493,488
Note: Data are as of the date of this report.
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. Aviation Management & Repairs Inc. repaid $100,000 in principal on April 1, 2021.
8. 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.
9. Core Avionics & Industrial, Inc. repaid $800,000 in principal on June 8, 2021; Core Avionics & Industrial, Inc. paid in full all principal and interest on April 1, 2022.
10. 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.
11. 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. Frontier Airlines, Inc. paid in full all principal and interest on February 2, 2022.
12. 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.
13. 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. JetBlue Airways Corporation paid in full all
outstanding principal and interest on September 15, 2021.
14. 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.
15. Ovation Travel Group, Inc. paid in full all outstanding principal and interest on January 21, 2021.
16. 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. Republic Airlines, Inc. paid in full all
outstanding principal and interest on September 10, 2021.
17. Semahtronix LLC paid in full all outstanding principal and interest on September 17, 2021.
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18. 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.
19. Southern Airways Express, LLC paid in full all outstanding principal and interest on April 29, 2021.
20. Sun Country, Inc. paid in full all outstanding principal and interest on March 24, 2021.
21. Thomas Global Systems, LLC paid in full all outstanding principal and interest on May 27, 2022.
22. 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.
23. The loan to Yellow Corporation consists of two tranches in the original principal amounts of $300 million and $400 million, and current outstanding principal amounts of $316 million and
$400 million, respectively. 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.
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