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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

September 6, 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-eligiblebusinesses-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 one outstanding transaction, which occurred on July 8, 2020.

(See next page)
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Detailed Financial Statement ($ in Thousands)

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.

Borrower

Borrower 

Type1 City2 State2

Date of 

Loan 

Agreement

Maturity 

Date

Total 

Anticipated 

Loan Amount Disbursements3

Total 

Outstanding 

Loan Amount4

Cash Interest 

Receipts

YRC 

Worldwide 

Inc.

National 

Security

Overland 

Park KS 7/8/2020 9/30/2024 $700,000 $245,000 $246,145 $572