Treasury Report Under Section 4026(b)(1)(C) of the CARES Act (December 5, 2020)
Summary
A U.S. Department of the Treasury report dated December 5, 2020, under Section 4026(b)(1)(C) of the CARES Act, reflecting 35 outstanding loans to air carriers, eligible businesses and national security businesses. YRC Worldwide, Inc. shows a $700,000,000 loan amount, $344,800,000 in total anticipated disbursements, $347,094,682 outstanding and $1,437,191 in cash interest receipts. Footnotes state that United Airlines, Inc. entered into a loan agreement for up to $5.17 billion on September 28, 2020, and an amendment on November 6, 2020 increased the maximum by $2.33 billion. Elite Airways, LLC entered into a loan agreement for up to $2,630,274 on November 9, 2020.
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“Treasury Report Under Section 4026(b)(1)(C) of the CARES Act (December 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-12-05-2020-10415227a8/
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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
December 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 35 outstanding loans.
(See next page)
2
Detailed Financial Statement
Total Cash
Borrower Borrower Date of Loan Maturity Total Anticipated Outstanding Interest
Name Type1 City2 State2 Agreement Date Loan Amount Disbursements3 Loan Amount4 Receipts
Aero Hydraulics, Repair Station
Fayetteville GA 10/26/2020 10/24/2025 $450,000 $450,000 $450,000 $0
Inc. Operator
9/28/2020
Alaska Airlines, Passenger Air
Seattle WA (amended 9/26/2025 $1,928,000,000 $135,000,000 $135,000,000 $0
Inc.5 Carrier
10/3/2020)
Allflight Repair Station
Kent WA 11/5/2020 11/5/2025 $4,721,260 $4,721,260 $4,721,260 $0
Corporation Operator
9/25/2020
American Passenger Air
Fort Worth TX (amended 6/30/2025 $7,500,000,000 $550,000,000 $550,000,000 $0
Airlines, Inc.6 Carrier
10/21/2020)
American Jet
Passenger Air
International Houston TX 11/5/2020 11/5/2025 $1,162,124 $1,162,124 $1,162,124 $0
Carrier
Corporation
Aviation
Repair Station
Management & Fort Pierce FL 11/5/2020 11/5/2025 $4,026,705 $4,026,705 $4,026,705 $0
Operator
Repairs, Inc.
Bristin Travel,
Ticket Agent Fayetteville AR 10/26/2020 10/24/2025 $549,651 $549,651 $549,651 $0
LLC
Caribbean Sun Passenger Air Virginia
FL 11/5/2020 11/5/2025 $15,000,000 $0 $0 $0
Airlines, Inc. Carrier Garden
Channel National
Camden NJ 11/12/2020 11/12/2025 $2,500,000 $2,500,000 $2,500,000 $0
Logistics, LLC Security
Core Avionics & National
Tampa FL 11/5/2020 11/5/2025 $6,000,000 $6,000,000 $6,000,000 $0
Industrial, Inc. Security
Eastern Airlines, Passenger Air
Wayne PA 10/28/2020 10/28/2025 $15,000,000 $15,000,000 $15,000,000 $0
LLC Carrier
3
Detailed Financial Statement
Total Cash
Borrower Borrower Date of Loan Maturity Total Anticipated Outstanding Interest
Name Type1 City2 State2 Agreement Date Loan Amount Disbursements3 Loan Amount4 Receipts
11/9/2020
Elite Airways, Passenger Air
Portland ME (amended 11/7/2025 $2,630,274 $2,630,274 $2,630,274 $0
LLC11 Carrier
12/1/2020)
Frontier Airlines, Passenger Air
Denver CO 9/28/2020 9/26/2025 $574,000,000 $150,000,000 $150,000,000 $0
Inc. Carrier
9/25/2020
Hawaiian Airlines, Passenger Air
Honolulu HI (amended 6/28/2024 $622,000,000 $45,000,000 $45,000,000 $0
Inc.7 Carrier
10/23/2020)
Cargo Air Ft.
Island Wings, Inc. FL 11/5/2020 11/5/2025 $294,350 $294,350 $294,350 $0
Carrier Lauderdale
9/29/2020
JetBlue Airways Passenger Air Long Island
NY (amended 9/29/2025 $1,948,000,000 $115,000,000 $115,000,000 $0
Corporation8 Carrier City
11/3/2020)
Legacy Airways, Cargo Air
Conroe TX 10/20/2020 10/20/2025 $1,817,306 $1,817,306 $1,817,306 $0
LLC 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
Defense Group, Pasadena CA 10/30/2020 10/30/2025 $7,100,000 $7,100,000 $7,100,000 $0
Security
LLC
Mesa Airlines, Passenger Air
Phoenix AZ 10/30/2020 10/30/2025 $200,000,000 $195,000,000 $195,000,000 $0
Inc. Carrier
Ovation Travel
Ticket Agent New York NY 10/15/2020 10/15/2025 $20,000,000 $20,000,000 $20,000,000 $0
Group, Inc.
oVio
National Newport
Technologies, CA 11/2/2020 10/31/2025 $1,186,900 $1,186,900 $1,186,900 $0
Security Beach
Inc.
Republic Airways, Passenger Air
Indianapolis IN 11/6/2020 11/6/2025 $77,000,000 $0 $0 $0
Inc. Carrier
4
Detailed Financial Statement
Total Cash
Borrower Borrower Date of Loan Maturity Total Anticipated Outstanding Interest
Name Type1 City2 State2 Agreement Date Loan Amount Disbursements3 Loan Amount4 Receipts
Semahtronix, National
Flippin AR 11/13/2020 11/13/2025 $1,999,100 $1,999,100 $1,999,100 $0
LLC Security
National
Semantic AI, Inc. San Diego CA 11/13/2020 11/13/2025 $506,300 $506,300 $506,300 $0
Security
9/29/2020
SkyWest Airlines, Passenger Air
St. George UT (amended 9/29/2025 $725,000,000 $60,000,000 $60,000,000 $0
Inc.9 Carrier
10/28/2020)
Southern Airways Passenger Air Pompano
FL 10/28/2020 10/28/2025 $1,838,501 $1,838,501 $1,838,501 $0
Express, LLC Carrier Beach
National
SpinLaunch, Inc. Long Beach CA 11/13/2020 11/13/2025 $2,519,200 $2,519,200 $2,519,200 $0
Security
Passenger Air
Sun Country, Inc. Minneapolis MN 10/26/2020 10/24/2025 $45,000,000 $45,000,000 $45,000,000 $0
Carrier
Thomas Global Repair Station
Irvine CA 11/9/2020 11/7/2025 $1,400,000 $1,400,000 $1,400,000 $0
Systems, LLC Operator
Timco Engine Repair Station
Oscoda MI 11/5/2020 11/5/2025 $8,390,240 $8,390,240 $8,390,240 $0
Center, Inc. Operator
9/28/2020
United Airlines, Passenger Air
Chicago IL (amended 9/26/2025 $7,500,000,000 $520,000,000 $520,000,000 $0
Inc.10 Carrier
11/6/2020)
Visual Semantics, National
Austin TX 10/30/2020 10/30/2025 $1,053,200 $1,053,200 $1,053,200 $0
Inc. Security
5
Detailed Financial Statement
Total Cash
Borrower Borrower Date of Loan Maturity Total Anticipated Outstanding Interest
Name Type1 City2 State2 Agreement Date Loan Amount Disbursements3 Loan Amount4 Receipts
Wiser Imagery National
Murfreesboro TN 10/30/2020 10/30/2025 $3,069,700 $3,069,700 $3,069,700 $0
Services, LLC Security
YRC Worldwide, National Overland
KS 7/7/2020 9/30/2024 $700,000,000 $344,800,000 $347,094,682 $1,437,191
Inc. Security Park
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.
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.
10. United Airlines, Inc. entered into a loan agreement for up to $5.17 billion on September 28, 2020, and an amendment on November 6, 2020, increasing the maximum loan amount by $2.33
billion.
11. 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, which extended the termination date for Treasury’s
commitment to December 1, 2020.
6
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