WASHINGTON, DC, March 27, 2020
– Following approval of the bill by the US Senate early yesterday morning and House of Representatives this afternoon, President Trump today signed into law the Coronavirus Aid, Relief and Economic Security Act (CARES Act)
, a historic $2 trillion economic relief package for individuals, small businesses, corporations and other groups hard-hit by the economic slowdown caused by the ongoing coronavirus pandemic.
The new law sets aside approximately $500 billion in loans and other money for large corporations. Of this amount, roughly $32 billion is allocated to the US aviation sector for payroll protection and continuation of employee benefits, including up to $25 billion for passenger airlines, up to $4 billion for cargo carriers, and up to $3 billion for airline contractors such as Part 145 aircraft maintenance repair stations and ticket agents. Another $29 billion is set aside for loans and loan guarantees for air carriers and their contractors.
In addition to the $61 billion in financial assistance allocated to aviation-sector companies, the law designates up to $17 billion in loans, loan guarantees and other transactions for businesses critical to maintaining national security (specifically, aerospace manufacturing and supply chain supports) and $454 billion for other eligible businesses, states, and municipalities.
The Secretary of the Treasury is now required to publish procedures for air carriers and contractors to submit grant requests within five days. Initial payments are to be made to approved applicants within 10 days. Application procedures and requirements for loan and loan guarantees under the new law also are to be published within 10 days.
The Wicks Group (TWG) has deep experience assisting aviation-related clients with navigating the evolving regulatory landscape. Air carriers or contractors interested in obtaining the financial assistance and guarantees established by the new law are invited to contact TWG Managing Director Glenn Wicks by email at email@example.com
or by phone at +1 202-457-7790 for more information on how TWG can help.