Report Under Section 4026(b)(1)(C) of the CARES Act on Loans — October 5, 2020
Summary
A U.S. Department of the Treasury report dated October 5, 2020, under Section 4026(b)(1)(C) of the CARES Act, reflecting eight outstanding loans. The borrowers listed as passenger carriers include American Airlines and United Airlines, and YRC Worldwide is listed as national security. In thousands of dollars, the financial statement lists loan amounts of $5,477,000 for American Airlines and $5,170,000 for United Airlines. The YRC Worldwide loan of $700,000 shows $246,719 outstanding and $860 in cash interest receipts.
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“Report Under Section 4026(b)(1)(C) of the CARES Act on Loans — October 5, 2020.”
Original at home.treasury.gov. Archived at Pandemic Darlings, https://pandemicdarlings.com/source-documents/u-s-department-of-the-treasury-4206-b-1-c-loan-report-10-05-2020-3103070555/
, SHA-256 6d704400c373e7fb12d6f24d77dfa3c9cb990cf5c9ec0b2f97e793ab0409683a.Full text
Report Under Section 4026(b)(1)(C) of the CARES Act on
Loans to Air Carriers, Eligible Businesses, and National Security Businesses
October 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.
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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 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 eight outstanding loans.
(See next page)
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Detailed Financial Statement ($ in Thousands)
Date of Total Total
Borrower Loan Maturity Anticipated Outstanding Cash Interest
Borrower Type1 City2 State2 Agreement Date Loan Amount Disbursements3 Loan Amount4 Receipts
Alaska Passenger
Seattle WA 09/28/2020 09/26/2025 $1,301,000 $135,000 $135,000 $0
Airlines, Inc. Carrier
American Passenger
Fort Worth TX 09/25/2020 06/30/2025 $5,477,000 $550,000 $550,000 $0
Airlines, Inc. Carrier
Frontier Passenger
Denver CO 09/28/2020 09/26/2025 $574,000 $150,000 $150,000 $0
Airlines, Inc. Carrier
Hawaiian Passenger
Honolulu HI 09/25/2020 06/30/2024 $420,000 $45,000 $45,000 $0
Airlines, Inc. Carrier
JetBlue
Passenger Long Island
Airways NY 09/29/2020 09/29/2025 $1,140,000 $115,000 $115,000 $0
Carrier City
Corporation
SkyWest Passenger
St. George UT 09/29/2020 09/29/2025 $573,000 $60,000 $60,000 $0
Airlines, Inc. Carrier
United Airlines, Passenger
Chicago IL 09/28/2020 09/26/2025 $5,170,000 $520,000 $520,000 $0
Inc. Carrier
YRC
National Overland
Worldwide, KS 07/08/2020 09/30/2024 $700,000 $245,000 $246,719 $860
Security Park
Inc.
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 borrowers in their applications and may not include 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.
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- TREAS-4026b1C-Loan-Report-10-05-2020.pdf
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- 29,261 bytes
- SHA-256
- 6d704400c373e7fb12d6f24d77dfa3c9cb990cf5c9ec0b2f97e793ab0409683a
- Original
- home.treasury.gov