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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 tenth report under section 4026(b)(1) of the CARES Act and reflects

one amendment agreed to on December 8, 2020 and one disbursement made on 

December 10, 2020. The amendment and the disbursement relate to transactions with 

entities whose loans closed before this reporting period. Treasury entered into these 

transactions under section 4003(b)(1) of the CARES Act. The total amount disbursed 

during this reporting period was $58,000,000.

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

Republic 

Airways, Inc. Passenger Air 

Carrier

Indianapolis IN 11/6/2020 11/6/2025 $58,000,000 $58,000,000

United Airlines, 

Inc.

Passenger Air 

Carrier Chicago IL

9/28/2020

(as amended 

on 11/6/2020 

and on 

12/8/2020)

9/26/2025 $7,491,000,0004 $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 a disbursement of $58 million to Republic Airways, Inc. on December 10, 2020, and of $520 million to United Airlines, Inc. on 

September 28, 2020. The loan agreement for Republic Airlines, Inc. provides for a total loan amount of up to $77 million, but no additional 

disbursements to Republic Airways, Inc. are anticipated.

4. United Airlines, Inc. entered into a loan agreement for up to $5.17 billion on September 28, 2020; an amendment on November 6, 2020, 

increasing the maximum loan amount by $2.33 billion; and a second amendment on December 8, 2020, decreasing the maximum loan 

amount by $9 million.