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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 

publish on its website a description of the transaction, certain transaction terms, 

and transaction documentation;
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(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 sixth report under section 4026(b)(1) of the CARES Act and reflects 

eleven transactions: seven transactions on November 5, 2020; two transactions on 

November 6, 2020; and two transactions on November 9, 2020. 

Treasury made these eleven loans pursuant to section 4003(b)(1), (2), and(3) of the 

CARES Act. Treasury’s total commitment under these eleven transactions is 

$2,450,624,953, of which $6 million has been disbursed.

Allflight Corporation

Treasury agreed to make a loan totaling $4,721,260 to Allflight Corp. (Allflight), a 

wholly owned subsidiary of 8 Alpha, Inc. Allflight is a repair station with approximately 

35 U.S. employees in March 2020.

Treasury made the loan pursuant to section 4003(b)(1) of the CARES Act. The loan is 

secured by tooling, inventory, engines, and spare parts. The loan has an interest rate 

equal to LIBOR plus 3.5% and matures on November 5, 2025. Allflight may draw the 

loan proceeds in a single draw through November 19, 2020. The loan proceeds will be 

used to provide liquidity to continue Allflight’s operations. The transaction agreement 

includes covenants by Allflight 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 Allflight, and 

Treasury will receive 3% payment-in-kind annual interest on the loan in accordance 

with section 4003(d) of the CARES Act.
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American Jet International Corporation

Treasury agreed to make a loan totaling $1,162,124 to American Jet International 

Corp. (American Jet), an air carrier with approximately 44 U.S. employees in March 

2020.

Treasury made the loan pursuant to section 4003(b)(1) of the CARES Act. The loan is 

secured by accounts receivable. It has an annual interest rate equal to LIBOR plus 

3.5% and matures on November 5, 2025. American Jet may draw the loan proceeds 

in a single draw through November 19, 2020. The loan proceeds will be used to 

provide liquidity to continue American Jet’s operations. The transaction agreement 

includes covenants by American Jet 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 American 

Jet, and Treasury will receive 3% payment-in-kind annual interest on the loan in 

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

Aviation Management & Repairs, Inc.

Treasury agreed to make a loan totaling $4,026,705 to Aviation Management & 

Repairs, Inc. (Aviation Management & Repairs), a repair station with approximately 6 

U.S. employees in March 2020.

Treasury made the loan pursuant to section 4003(b)(1) of the CARES Act. The loan is 

secured by aircraft, accounts receivable, ground support equipment, and engines and 

spare parts. It has an annual interest rate equal to LIBOR plus 3.5% and matures on 

November 5, 2025. Aviation Management & Repairs may draw the loan proceeds in a 

single draw through November 19, 2020. The loan proceeds will be used to provide 

liquidity to continue American Management & Repairs’ operations. The transaction 

agreement includes covenants by American Management & Repairs 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 American Management & Repairs, and Treasury will receive 

3% payment-in-kind annual interest on the loan in accordance with section 4003(d) of 

the CARES Act. 

Caribbean Sun Airlines, Inc.

Treasury agreed to make a loan totaling $15,000,000 to Caribbean Sun Airlines, Inc. 

(Caribbean Sun), a passenger air carrier with approximately 173 U.S. employees in 

March 2020.

Treasury made the loan pursuant to section 4003(b)(1) of the CARES Act. The loan is 

secured by aircraft, engines, and rotable spare parts. The loan has an interest rate 

equal to LIBOR plus 3.5% and matures on November 5, 2025. Caribbean Sun may 

draw the loan proceeds in a single draw through November 19, 2020. The loan 

proceeds will be used to provide liquidity to continue Caribbean Sun’s operations. The 

transaction agreement includes covenants by Caribbean Sun to comply with certain 

restrictions on employee compensation, stock repurchases, dividends, and reductions 
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in employment levels, as required by the CARES Act. The loan constitutes senior 

indebtedness of Caribbean Sun, and Treasury will receive 3% payment-in-kind annual 

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

Core Avionics & Industrial, Inc.

Treasury agreed to make a loan totaling $6,000,000 to Core Avionics & Industrial, Inc. 

(Core Avionics), a business critical to maintaining national security with approximately 

25 U.S. employees in March 2020. 

Treasury made the loan pursuant to section 4003(b)(3) of the CARES Act. The loan is 

unsecured. It has an annual interest rate equal to LIBOR plus 5.5% and matures on 

November 5, 2025. Treasury funded the full loan amount at close. The loan proceeds 

will be used to provide liquidity to continue Core Avionics’ operations. The transaction 

agreement includes covenants by Core Avionics 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 

Core Avionics, and Treasury will receive 3% payment-in-kind annual interest on the loan 

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

Elite Airways, LLC

Treasury agreed to make a loan totaling $2,630,274 to Elite Airways, LLC (Elite 

Airways), a passenger air carrier with approximately 110 U.S. employees in March 

2020.

Treasury made the loan pursuant to section 4003(b)(1) of the CARES Act. The loan is 

secured by ground support equipment and spare parts. It has an annual interest rate 

equal to LIBOR plus 3.5% and matures on November 7, 2025. Elite Airways may draw 

the loan proceeds in a single draw through November 23, 2020. The loan proceeds 

will be used to provide liquidity to continue Elite Airways’ operations. The transaction 

agreement includes covenants by Elite Airways 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 

Elite Airways, and Treasury will receive 3% payment-in-kind annual interest on the 

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

Island Wings, Inc.

Treasury agreed to make a loan totaling $294,350 to Island Wings, Inc. (Island Wings), 

an air cargo carrier with approximately 0 U.S. employees in March 2020.

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Treasury made the loan pursuant to section 4003(b)(1) of the CARES Act. The loan is 

secured by aircraft. The loan has an interest rate equal to LIBOR plus 3.5% and 

matures on November 5, 2025. Island Wings may draw the loan proceeds in a single 

draw through November 19, 2020. The loan proceeds will be used to provide liquidity 

1 Island Wings, Inc. had 0 employees in March 2020, but it rehired its employees in April and over the 

course of summer 2020.
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to continue Island Wings’ operations. The transaction agreement includes covenants 

by Island Wings 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 Island Wings, and Treasury 

will receive 3% payment-in-kind annual interest on the loan in accordance with section 

4003(d) of the CARES Act.

Republic Airlines, Inc.

Treasury agreed to make a loan totaling $77,000,000 to Republic Airways, Inc. 

(Republic), a passenger air carrier with approximately 6,700 U.S. employees in March 

2020.

Treasury made the loan pursuant to section 4003(b)(1) of the CARES Act. The loan is 

secured by spare parts and tooling inventory. This loan has an interest rate equal to 

LIBOR plus 3.5% and matures on November 6, 2025. Republic may draw the loan 

proceeds in up to two draws through December 15, 2020. The loan proceeds will be 

used to provide liquidity to continue Republic’s operations. The transaction agreement 

includes covenants by Republic 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 

equal to 10% of the total loan amount drawn.

Thomas Global Systems LLC

Treasury agreed to make a loan totaling $1,400,000 to Thomas Global Systems LLC 

(Thomas Global), a wholly owned subsidiary of Thomas Global Systems Inc. The 

Company is a repair station with approximately 20 U.S. employees in March 2020.

Treasury made the loan pursuant to section 4003(b)(1) of the CARES Act. The loan is 

secured by accounts receivable. It has an interest rate equal to LIBOR plus 3.5% and 

matures on November 7, 2025. Thomas Global may draw the loan proceeds in a 

single draw through November 23, 2020. The loan proceeds will be used to provide 

liquidity to continue Thomas Global’s operations. The transaction agreement includes 

covenants by Thomas Global 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 Thomas 

Global, and Treasury will receive 3% payment-in-kind annual interest on the loan in 

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

Timco Engine Center, Inc.

Treasury agreed to make a loan totaling $8,390,240 to Timco Engine Center, Inc. 

(Timco), a wholly owned subsidiary of Oscoda Engine Services Corp. Timco is a 

repair station with approximately 25 U.S. employees in March 2020.

Treasury made the loan pursuant to section 4003(b)(1) of the CARES Act. The loan is 

secured by engines and spare parts, accounts receivable, ground support equipment, 

tooling, and inventory. The loan has an interest rate equal to LIBOR plus 3.5% and 
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matures on November 5, 2025. Timco may draw the loan proceeds in a single draw 

through November 19, 2020. The loan proceeds will be used to provide liquidity to 

continue Timco’s operations. The transaction agreement includes covenants by Timco 

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 Timco, and Treasury will receive 3% paymentin-kind annual interest on the loan in accordance with section 4003(d) of the CARES 

Act.

United Airlines, Inc. 

Treasury agreed to make a loan of up to $7,500,000,000 to United Airlines, Inc. 

(United), a wholly owned subsidiary of United Airlines Holdings, Inc., and one of the 

largest domestic airlines in the United States. On September 28, 2020, Treasury 

agreed to make a loan of up to $5.17 billion to United, and on November 6, 2020, 

Treasury increased the maximum loan amount to $7.5 billion. United had approximately 

93,000 U.S. employees in March 2020 and carried more than 162 million passengers in 

2019. 

Treasury made the loan pursuant to section 4003(b)(1) of the CARES Act. The loan is 

secured by United’s European, South American, Pacific, Oceanic, and Asian routes, 

certain aircraft, and flight simulators. The loan has an interest rate equal to LIBOR plus 

3.0% and matures on September 26, 2025. United elected to draw $520 million at close 

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

loan proceeds will be used to provide liquidity to continue United’s operations. The 

transaction agreement includes covenants by United 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 equal to 10% of the total loan amount drawn.

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 

Borrower

Borrower 

Type1 City2 State2

Date of Loan 

Agreement Maturity Date

Total Anticipated Loan 

Amount Disbursements3

Allflight 

Corporation

Repair 

Station 

Operator

Kent WA 11/5/2020 11/5/2025 $4,721,260 $0 

American Jet 

International 

Corporation

Passenger 

Air Carrier Houston TX 11/5/2020 11/5/2025 $1,162,124 $0 

Aviation 

Management 

& Repairs, 

Inc.

Repair 

Station 

Operator

Fort Pierce FL 11/5/2020 11/5/2025 $4,026,705 $0 

Caribbean 

Sun Airlines, 

Inc.

Passenger 

Air Carrier

Virginia 

Garden FL 11/5/2020 11/5/2025 $15,000,000 $0 

Core 

Avionics & 

Industrial Inc. 

National 

Security Tampa FL 11/5/2020 11/5/2025 $6,000,000 $6,000,000

Elite 

Airways, LLC Passenger 

Air Carrier Portland ME 11/9/2020 11/7/2025 $2,630,274 $0

Island 

Wings, Inc. Cargo Air 

Carrier

Fort 

Lauderdale FL 11/5/2020 11/5/2025 $294,350 $0 

Republic 

Airways, Inc. Passenger 

Air Carrier Indianapolis IN 11/6/2020 11/6/2025 $77,000,000 $0

Thomas 

Global 

Systems, 

LLC 

Repair 

Station 

Operator

Irvine CA 11/9/2020 11/7/2025 $1,400,000 $0 

Timco 

Engine 

Center, Inc.

Repair 

Station 

Operator

Oscoda MI 11/5/2020 11/5/2025 $8,390,240 $0

United 

Airlines, Inc.4

Passenger 

Air Carrier Chicago IL

9/28/2020 

(amended 

11/6/2020)

9/26/2025 $7,500,000,000 $520,000,000 

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 Core Avionics & Industrial, Inc. on November 5, 2020, and to United Airlines, Inc. on September 28, 2020.

4. United Airlines, Inc. entered into a loan agreement for up to $5.17 billion on September 28, 2020, and an amendment on November 

6, 2020, increasing the maximum loan amount by $2.33 billion.