Treasury Report Under Section 4026(b)(1)(C) of the CARES Act (November 5, 2020)
Summary
A U.S. Department of the Treasury report dated November 5, 2020, under Section 4026(b)(1)(C) of the CARES Act, reflecting 21 outstanding loans to air carriers, eligible businesses and national security businesses. Its financial statement lists loan amounts including $7,500,000,000 for American Airlines, Inc., $5,170,000,000 for United Airlines, Inc. and $1,948,000,000 for JetBlue Airways Corporation. YRC Worldwide, Inc. shows a $700,000,000 loan amount, $319,800,000 in total anticipated disbursements, $322,094,682 outstanding and $1,147,341 in cash interest receipts. Footnotes record amendments that increased the maximum loans to Alaska Airlines, American Airlines, Hawaiian Airlines, JetBlue Airways and SkyWest Airlines.
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“Treasury Report Under Section 4026(b)(1)(C) of the CARES Act (November 5, 2020).”
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-11-05-2020-6a9062f492/
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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
November 5, 2020
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 21 outstanding loans.
(See next page)
2
Detailed Financial Statement
Total
Outstanding
Borrower Date of Loan Maturity Total Anticipated Loan Loan Cash Interest
Borrower Name Type1 City2 State2 Agreement Date Amount Disbursements3 Amount4 Receipts
Repair
Aero Hydraulics, Inc Station Fayetteville GA 10/26/2020 10/24/2025 $450,000 $450,000 $450,000 $0
Operator
9/28/2020
Passenger
Alaska Airlines, Inc.5 Seattle WA (amended 9/26/2025 $1,928,000,000 $135,000,000 $135,000,000 $0
Air Carrier
10/3/2020)
9/25/2020
American Airlines, Passenger
Fort Worth TX (amended 6/30/2025 $7,500,000,000 $550,000,000 $550,000,000 $0
Inc.6 Air Carrier
10/21/2020)
Ticket
Bristin Travel, LLC Fayetteville AR 10/26/2020 10/24/2025 $549,651 $549,651 $549,651 $0
Agent
Passenger
Eastern Airlines, LLC Wayne PA 10/28/2020 10/28/2025 $15,000,000 $15,000,000 $15,000,000 $0
Air Carrier
Passenger
Frontier Airlines, Inc. Denver CO 9/28/2020 9/26/2025 $574,000,000 $150,000,000 $150,000,000 $0
Air Carrier
9/25/2020
Hawaiian Airlines, Passenger
Honolulu HI (amended 6/28/2024 $622,000,000 $45,000,000 $45,000,000 $0
Inc.7 Air Carrier
10/23/2020)
9/29/2020
JetBlue Airways Passenger Long Island
NY (amended 9/29/2025 $1,948,000,000 $115,000,000 $115,000,000 $0
Corporation8 Air Carrier City
11/3/2020)
Cargo Air
Legacy Airways, LLC Conroe TX 10/20/2020 10/20/2025 $1,817,306 $1,817,306 $1,817,306 $0
Carrier
National
MapLarge, Inc. Atlanta GA 11/2/2020 10/31/2025 $10,000,000 $10,000,000 $10,000,000 $0
Security
Meridian Rapid National
Pasadena CA 10/30/2020 10/30/2025 $7,100,000 $7,100,000 $7,100,000 $0
Defense Group, LLC Security
Passenger
Mesa Airlines, Inc. Phoenix AZ 10/30/2020 10/30/2025 $200,000,000 $43,000,000 $43,000,000 $0
Air Carrier
3
Total
Outstanding
Borrower Date of Loan Maturity Total Anticipated Loan Loan Cash Interest
Borrower Name Type1 City2 State2 Agreement Date Amount Disbursements3 Amount4 Receipts
Ovation Travel Group, Ticket
New York NY 10/15/2020 10/15/2025 $20,000,000 $20,000,000 $20,000,000 $0
Inc. Agent
oVio Technologies, National
Newport Beach CA 11/2/2020 10/31/2025 $1,186,900 $1,186,900 $1,186,900 $0
Inc. Security
9/29/2020
SkyWest Airlines, Passenger
St. George UT (amended 9/29/2025 $725,000,000 $60,000,000 $60,000,000 $0
Inc.9 Air Carrier
10/28/2020)
Southern Airways Passenger Pompano
FL 10/28/2020 10/28/2025 $1,838,501 $1,838,501 $1,838,501 $0
Express, LLC Air Carrier Beach
Passenger
Sun Country, Inc. Minneapolis MN 10/26/2020 10/24/2025 $45,000,000 $45,000,000 $45,000,000 $0
Air Carrier
Passenger
United Airlines, Inc. Chicago IL 9/28/2020 9/26/2025 $5,170,000,000 $520,000,000 $520,000,000 $0
Air Carrier
National
Visual Semantics, Inc. Austin TX 10/30/2020 10/30/2025 $1,053,200 $1,053,200 $1,053,200 $0
Security
Wiser Imagery National
Murfreesboro TN 10/30/2020 10/30/2025 $3,069,700 $3,069,700 $3,069,700 $0
Services, LLC Security
National
YRC Worldwide, Inc. Overland Park KS 7/8/2020 9/30/2024 $700,000,000 $319,800,000 $322,094,682 $1,147,341
Security
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 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.
4
7. Hawaiian Airlines entered into a loan agreement for up to $420 million on September 28, 2020, and an amendment on October 23, 2020, increasing the maximum loan
amount by $202 million.
8. 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.
9. 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.
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