US Treasury releases guidance on payroll support, loans for airlines

US Department of the Treasury released (30-Mar-2020) guidance on payroll support to air carriers and procedures and requirements for loans to air carriers under the Coronavirus Aid, Relief, and Economic Security (CARES) Act. In order to be eligible for payroll support, the applicant must agree to use payments exclusively to continue employee wages, salaries and benefits, refrain from involuntary layoffs/furloughs or reduced pay rates and benefits until 30-Sep-2020, and ensure that no dividends are paid, capital distributions made or equity security listed on the national securities exchange until 30-Sep-2021. Once deemed eligible, carriers will receive payroll support equal to the salaries and benefits it reported or is certified as having paid during the period from 01-Apr-2019 to 30-Sep-2019. For loans, it is specified the Treasury may not issue loans to a borrower with securities that are traded on a national securities exchange unless the Treasury receives a warrant or equity interest, or to any other borrower unless the Treasury receives a warrant, equity interest or senior debt instrument. [more - original PR]