Loans to Air Carriers, Eligible Businesses, and National Security Businesses

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 the coronavirus pandemic.

Division A, Title IV, Subtitle A of the CARES Act provides up to $25 billion for loans and loan guarantees to passenger air carriers, repair station operators certified under 14 CFR part 145, and ticket agents; up to $4 billion for loans and loan guarantees to cargo air carriers; and up to $17 billion for loans and loan guarantees to businesses critical to maintaining national security.

The CARES Act requires borrowers 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.  Under the statute, 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.

The CARES Act also requires that the Treasury Department receive a warrant or equity instrument in the borrower if the borrower is a public company (unless the Treasury Department 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.

In addition, the CARES Act requires the Treasury Department to publish on its website, within 72 hours after any loan transaction, information about the transaction including its material terms and relevant documentation. 




National Security Businesses 1

Borrower City 2 State 2 Total Anticipated Loan Amount Date of Application Date of Loan Agreement 3 Transaction Information 4
YRC WORLDWIDE INC. OVERLAND PARK KS $700,000,000 4/29/2020 7/8/2020 Transaction Summary
Transaction Documentation



  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. Additional information regarding eligibility is provided in the "Procedures and Minimum Requirements for Loans to Air Carriers and Eligible Businesses and National Security Businesses under Division A, Title IV, Subtitle A of the Coronavirus Aid, Relief, and Economic Security Act" (March 30, 2020), available here
  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. Date of Loan Agreement: The date of the loan agreement is also the date of approval of the borrower’s application.
  4. The transaction documentation provides information including the interest rate, conditions, and other material and financial terms of the transactions.


CARES Act Section 4026(b) Reports

4026(b)(1)(B) Loan Report (07/15/2020)

4026(b)(1)(C) Loan Report (08/07/2020)

4026(b)(1)(C) Loan Report (09/06/2020)