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Report Under Section 4026(b)(1) of the CARES Act on 

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

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) 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 
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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. 

Current Report

This is Treasury’s fourth report under section 4026(b)(1) of the CARES Act and reflects 

five transactions: one transaction on October 22, 2020; two on October 23, 2020; and two 

on October 26, 2020.

Treasury entered into these five loan transactions under section 4003(b)(1), (2), or (3) of 

the CARES Act for a total of $2.27 billion, of which $46 million has been disbursed.

American Airlines

On September 25, 2020, Treasury agreed to make a loan of up to $5.477 billion to 

American Airlines, Inc. (American Airlines). On October 21, 2020, Treasury increased 

the maximum loan amount to $7.5 billion. American Airlines is a wholly owned 

subsidiary of American Airlines Group, Inc. and one of the largest domestic airlines in 

the United States. American Airlines had approximately 157,000 U.S. employees in 

March 2020 and carried more than 150 million passengers in 2019.

The loan is secured by American Airlines’ AAdvantage loyalty program. The loan has 

an interest rate equal to LIBOR plus 3.5% and matures on June 30, 2025. American 

Airlines elected to draw $550 million upon closing of the loan on September 25, 2020, 

and it may draw the remaining loan funds in multiple draws through March 26, 2021. 

The loan proceeds will be used to provide liquidity to continue American Airlines’

operations. The transaction agreement includes covenants by the company to comply 

with certain restrictions on employee compensation, stock repurchases, dividends, and 

reductions in employment levels, as required by the CARES Act. Treasury will receive 

warrants to purchase common stock with an aggregate value equal to 10% of the total 

loan amount drawn. 

Aero Hydraulics

Treasury agreed to make a loan totaling $450,000 to Aero Hydraulics Inc. (Aero 

Hydraulics), a repair station with approximately 2 U.S. employees in March 2020.
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The loan is unsecured. It has an annual interest rate equal to LIBOR plus 5.5% and 

matures on October 23, 2025. Treasury funded the full loan amount at close. The 

loan proceeds will be used to provide liquidity to continue Aero Hydraulics’ operations. 

The transaction agreement includes covenants by Aero Hydraulics to comply with 

certain restrictions on employee compensation, stock repurchases, dividends, and 

reductions in employment levels, as required by the CARES Act. The loan constitutes 

senior indebtedness of Aero Hydraulics, and Treasury will receive 3% payment-in-kind 

annual interest on the loan in accordance with section 4003(d) of the CARES Act. 

Bristin Travel Services, LLC

Treasury agreed to make a loan totaling $549,651 to Bristin Travel, LLC (Bristin), a 

ticket agent with approximately 12 U.S. employees in March 2020.

The loan is secured by Bristin’s accounts receivable. The loan has an interest rate 

equal to LIBOR plus 3.5% and matures on October 26, 2025. Treasury funded the full 

loan amount at close. The loan proceeds will be used to provide liquidity to continue 

Bristin’s operations. The transaction agreement includes covenants by Bristin to 

comply with certain restrictions on employee compensation, stock repurchases, 

dividends, and reductions in employment levels, as required by the CARES Act. The 

loan constitutes senior indebtedness of Bristin, and Treasury will also receive 3% 

payment-in-kind annual interest on the loan in accordance with section 4003(d) of the 

CARES Act. 

Hawaiian Airlines

On September 28, 2020, Treasury agreed to make a loan of up to $420 million to 

Hawaiian Airlines, Inc. (Hawaiian Airlines). On October 23, 2020, Treasury increased 

the maximum loan amount to $622 million. Hawaiian Airlines is a wholly owned 

subsidiary of Hawaiian Holdings, Inc. and one of the largest domestic airlines in the 

United States. Hawaiian Airlines had approximately 7,400 U.S. employees in March 

2020 and carried more than 11 million passengers in 2019.

The loan is secured by Hawaiian Airlines’ HawaiianMiles loyalty program as well as 

certain aircraft. The loan has an interest rate equal to LIBOR plus 2.5% and matures on 

June 30, 2024. Hawaiian Airlines elected to draw $45 million upon closing of the loan 

on September 28, 2020, and it may draw the remaining loan funds in multiple draws 

through March 26, 2021. The loan proceeds will be used to provide liquidity to continue 

Hawaiian Airlines’ operations. The transaction agreement includes covenants by 

Hawaiian Airlines to comply with certain restrictions on employee compensation, stock 

repurchases, dividends, and reductions in employment levels, as required by the 

CARES Act. Treasury will receive warrants to purchase common stock with an 

aggregate value equal to 10% of the total loan amount drawn. 

Sun Country, Inc.

Treasury agreed to make a loan totaling $45 million to Sun Country, Inc. (Sun 

Country), a wholly owned subsidiary of Sun Country Holdings, Inc. Sun Country is a 
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passenger air carrier with approximately 1,630 U.S. employees in March 2020.

The loan is secured by Sun Country’s Sun Country Rewards loyalty program. The 

loan has an annual interest rate equal to LIBOR plus 3.5% and matures on October 

26, 2025. Treasury funded the full loan amount at close. The loan proceeds will be 

used to provide liquidity to continue Sun Country’s operations. The transaction 

agreement includes covenants by Sun Country to comply with certain restrictions on 

employee compensation, stock repurchases, dividends, and reductions in employment 

levels, as required by the CARES Act. The loan constitutes senior indebtedness of 

Sun Country, and Treasury will also receive 3% payment-in-kind annual interest on the 

loan in accordance with section 4003(d) of the CARES Act. 

The loan agreements are available on Treasury’s website at 

https://home.treasury.gov/policy-issues/cares/preserving-jobs-for-americanindustry/loans-to-air-carriers-eligible-businesses-and-national-security-businesses.
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Detailed Financial Statement ($ Thousands)

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. Includes disbursements to Aero Hydraulics, Bristin, and Sun Country between October 23 and October 26; to American Airlines on 

September 25, 2020; and to Hawaiian Airlines on September 28, 2020. 

4. American Airlines entered into a loan agreement for up to $5.477 billion on September 25, 2020 and an amendment on October 22, 

2020 increasing the maximum loan amount by $2.023 billion.

5. 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.

Borrower

Borrower 

Type1 City2 State2

Date of 

Loan 

Agreement

Maturity 

Date

Total Anticipated 

Loan Amount Disbursements3

Aero 

Hydraulics, 

Inc.

Repair 

Station Fayetteville GA 10/23/20 10/23/25 $450,000 $450,000

American 

Airlines, 

Inc.4

Passenger

Air Carrier Fort Worth TX

09/25/20

(amended 

Oct. 22, 

2020)

06/30/25 $7,500,000,000 $550,000,000

Bristin 

Travel, LLC Ticket Agent Fayetteville AR 10/26/20 10/26/25 $549,651 $549,651

Hawaiian

Airlines, 

Inc.5

Passenger 

Air Carrier Honolulu HI

09/28/20

(amended 

Oct. 23, 

2020)

06/30/24 $622,000,000 $45,000,000

Sun 

Country, 

Inc.

Passenger 

Air Carrier Minneapolis MN 10/26/20 10/26/25 $45,000,000 $45,000.000