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

Established by the CARES Act, the 4003 Loan Program authorized the Treasury Department to make loans, loan guarantees, and other investments to provide liquidity to eligible businesses related to losses incurred due to the coronavirus pandemic. Under this program, the Treasury Department provided approximately $2.7 billion in loans to 35 eligible businesses, including passenger air carriers, repair station operators, ticket agents, cargo air carriers, and businesses critical to maintaining national security.

The 4003 Loan Program provided an emergency credit line for large and small businesses unable to obtain credit elsewhere during the height of the pandemic, thereby reducing COVID-19-driven bankruptcies, protecting pensions, and, together with the Payroll Support Program, avoiding long-term reductions in aviation capacity.

To the extent practicable, the CARES Act required borrowers to agree to maintain their March 24, 2020, employment levels between that date and September 30, 2020. In accordance with the statute, borrowers also were required to agree to certain employee compensation restrictions; agree not to repurchase stock; and agree not to pay dividends or make other capital distributions until 12 months after the loan is fully repaid to the Treasury Department.

Further, the CARES Act required that the Treasury Department receive certain financial protections in making a loan, in the form of a warrant or equity interest if the borrower is a public company, or a warrant, equity interest, or senior debt instrument if the borrower is a private company. As of February 2023, of the 35 loans that the Treasury Department executed, 21 large and small businesses owe a combined $985 million. Fourteen borrowers have fully repaid their loans for a combined $1.7 billion in principal prepayments. Borrowers have paid more than $97 million in cash interest payments.

DATA CURRENT AS OF 1/21/2021


 

air carriers, repair station operators, and ticket agents 1

 

  Borrower City 2 State 2 Total Anticipated Loan Amount Date of Application Date of Loan Agreement 3 Transaction Information 4
  AERO HYDRAULICS, INC. FAYETTEVILLE GA $450,000 05/1/2020 10/26/2020

Transaction Summary

Transaction Documentation

  ALASKA AIRLINES, INC. SEATTLE WA $1,928,000,000 04/17/2020 09/28/2020 (amended 10/30/2020 and 01/15/2021)

Transaction Summary

Transaction Documentation

  ALLFLIGHT CORPORATION KENT WA $4,721,260 04/17/2020 11/05/2020

Transaction Summary

Transaction Documentation 

  AMERICAN AIRLINES, INC. FORT WORTH TX $7,500,000,000 04/18/2020 09/25/2020 (amended 10/21/2020 and 01/15/2021)

Transaction Summary

Transaction Documentation

  AMERICAN JET INTERNATIONAL CORP HOUSTON TX $1,162,124 04/09/2020 11/05/2020

Transaction Summary

Transaction Documentation 

  AVIATION MANAGEMENT & REPAIRS, INC. FORT PIERCE FL $4,026,705 04/29/2020 11/05/2020

Transaction Summary

Transaction Documentation 

  BRISTIN TRAVEL, LLC FAYETTEVILLE AR $549,651 04/11/2020 10/26/2020

Transaction Summary

Transaction Documentation

  CARIBBEAN SUN AIRLINES, INC. VIRGINIA GARDENS FL $6,768,749 04/17/2020 11/05/2020 (amended 12/7/2020)

Transaction Summary

Transaction Documentation 

  EASTERN AIRLINES LLC WAYNE PA $15,000,000 04/18/2020 10/28/2020

Transaction Summary

Transaction Documentation

  ELITE AIRWAYS, LLC PORTLAND ME $2,630,274 04/14/2020 11/09/2020 (amended 12/1/2020)

Transaction Summary

Transaction Documentation

  FRONTIER AIRLINES, INC.  DENVER CO $574,000,000 04/16/2020 09/28/2020
(amended 01/15/2021)

Transaction Summary

Transaction Documentation

  HAWAIIAN AIRLINES, INC. HONOLULU HI $622,000,000 04/17/2020 09/25/2020 (amended 10/23/2020 and 01/15/2021)

Transaction Summary

Transaction Documentation

  ISLAND WINGS, INC. FT. LAUDERDALE FL $294,350 04/30/2020 11/05/2020

Transaction Summary

Transaction Documentation 

  JETBLUE AIRWAYS CORPORATION LONG ISLAND CITY NY $1,948,000,000 04/29/2020 09/29/2020 (amended 11/03/2020 and 01/15/2021)

Transaction Summary

Transaction Documentation

  LEGACY AIRWAYS, LLC CONROE TX $1,817,306 06/23/2020 10/20/2020

Transaction Summary

Transaction Documentation

  MESA AIRLINES, INC. PHOENIX AZ $195,000,000 04/24/2020 10/30/2020

Transaction Summary

Transaction Documentation

  OVATION TRAVEL GROUP INC. NEW YORK NY $20,000,000 04/16/2020 10/15/2020

Transaction Summary

Transaction Documentation

  REPUBLIC AIRWAYS, INC. INDIANAPOLIS IN $58,000,000 04/20/2020 11/06/2020

Transaction Summary

Transaction Documentation

  SKYWEST AIRLINES, INC. ST. GEORGE UT $725,000,000 04/24/2020 09/29/2020 (amended 10/28/2020 and 01/15/2021)

Transaction Summary

Transaction Documentation

  SOUTHERN AIRWAYS EXPRESS, LLC POMPANO BEACH FL $1,838,501 04/17/2020 10/28/2020

Transaction Summary

Transaction Documentation

  SUN COUNTRY, INC. MINNEAPOLIS MN $45,000,000 04/17/2020 10/26/2020

Transaction Summary

Transaction Documentation

  THOMAS GLOBAL SYSTEMS LLC IRVINE CA $1,400,000 04/16/2020 11/09/2020

Transaction Summary

Transaction Documentation

  TIMCO ENGINE CENTER, INC. OSCODA MI $8,390,240 04/17/2020 11/05/2020

Transaction Summary

Transaction Documentation 

  UNITED AIRLINES, INC. CHICAGO IL $7,491,000,000 04/17/2020 09/28/2020 (amended 11/06/2020, 12/08/2020 and 01/15/2021)

Transaction Summary

Transaction 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
  CHANNEL LOGISTICS, LLC CAMDEN NJ $2,500,000 05/01/2020 11/12/2020

Transaction Summary

Transaction Documentation

  CORE AVIONICS & INDUSTRIAL, INC. TAMPA FL $6,000,000 05/01/2020 11/05/2020

Transaction Summary

Transaction Documentation 

  MAP LARGE, INC. ATLANTA GA $10,000,000 04/27/2020 11/02/2020

Transaction Summary

Transaction Documentation

  MERIDIAN RAPID DEFENSE GROUP, LLC PASADENA CA $7,100,000 05/06/2020 10/30/2020

Transaction Summary

Transaction Documentation

  OVIO TECHNOLOGIES, INC. NEWPORT BEACH CA $1,186,900 05/04/2020 11/02/2020

Transaction Summary

Transaction Documentation

  SEMAHTRONIX, LLC FLIPPIN AR $1,999,100 05/01/2020 11/13/2020

Transaction Summary

Transaction Documentation

  SEMANTIC AI, INC. SAN DIEGO CA $506,300 05/01/2020 11/13/2020

Transaction Summary

Transaction Documentation

  SPINLAUNCH, INC. LONG BEACH CA $2,519,200 05/01/2020 11/13/2020

Transaction Summary

Transaction Documentation

  VISUAL SEMANTICS, INC. AUSTIN TX $1,053,200 05/01/2020 10/30/2020

Transaction Summary

Transaction Documentation

  WISER IMAGERY SERVICES, LLC MURFREESBORO TN $3,069,700 05/12/2020 10/30/2020

Transaction Summary

Transaction Documentation

  YELLOW CORPORATION (FORMERLY YRC WORLDWIDE INC.) OVERLAND PARK KS $700,000,000 04/29/2020 07/08/2020 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. For borrowers whose loan agreements have been amended, the date listed is the date of execution of the initial loan agreement.
  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)(B) Loan Report (10/02/2020)

4026(b)(1)(B) Loan Report (10/23/2020)

4026(b)(1)(B) Loan Report (10/30/2020)

4026(b)(1)(B) Loan Report (11/04/2020)

4026(b)(1)(B) Loan Report (11/12/2020)

4026(b)(1)(B) Loan Report (11/19/2020)

4026(b)(1)(B) Loan Report (11/25/2020)

4026(b)(1)(B) Loan Report (12/08/2020)

4026(b)(1)(B) Loan Report (12/15/2020)

4026(b)(1)(B) Loan Report (12/29/2020)

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

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

4206(b)(1)(C) Loan Report (10/05/2020)

4026(b)(1)(C) Loan Report (11/05/2020)

4026(b)(1)(C) Loan Report (12/05/2020)

4026(b)(1)(C) Loan Report (01/04/2021)

4026(b)(1)(C) Loan Report (02/03/2021)

4026(b)(1)(C) Loan Report (03/01/2021)

4026(b)(1)(C) Loan Report (04/01/2021)

4026(b)(1)(C) Loan Report (05/01/2021)

4026(b)(1)(C) Loan Report (06/01/2021)

4026(b)(1)(C) Loan Report (07/01/2021)

4026(b)(1)(C) Loan Report (08/01/2021)

4026(b)(1)(C) Loan Report (09/01/2021)

4026(b)(1)(C) Loan Report (10/01/2021)

4026(b)(1)(C) Loan Report (11/01/2021)

4026(b)(1)(C) Loan Report (12/01/2021)

4026(b)(1)(C) Loan Report (01/01/2022)

4026(b)(1)(C) Loan Report (02/01/2022)

4026(b)(1)(C) Loan Report (03/01/2022)

4026(b)(1)(C) Loan Report (04/01/2022) 

4026(b)(1)(C) Loan Report (05/01/2022) 

4026(b)(1)(C) Loan Report (06/01/2022)

4026(b)(1)(C) Loan Report (07/01/2022) 

4026(b)(1)(C) Loan Report (08/01/2022)

4026(b)(1)(C) Loan Report (09/01/2022)

4026(b)(1)(C) Loan Report (10/01/2022)

4026(b)(1)(C) Loan Report (11/01/2022) 

4026(b)(1)(C) Loan Report (12/01/2022)

4026(b)(1)(C) Loan Report (01/01/2023)

4026(b)(1)(C) Loan Report (02/01/2023)

4026(b)(1)(C) Loan Report (03/01/2023)

4026(b)(1)(C) Loan Report (03/15/2023)

4026(b)(1)(C) Loan Report (04/15/2023)

4026(b)(1)(C) Loan Report (05/01/2023)