Treasury Secretary Steve Mnuchin announced that small passenger air carriers with payroll under $100 million dollars would not be required to provide financial instruments as appropriate compensation for assistance received pursuant to the CARES Act, Title IV, Subpart B, Air Carrier Worker Support Program.
“We thank Secretary Mnuchin and his excellent staff for hearing the concerns of NATA membership whose aviation businesses have been hard hit by the pandemic. We appreciate their consideration of the diverse and unique nature of Part 135 operators and work to expedite relief to the employees of these vital and essential American companies. We look forward to continuing to work with the Secretary and his staff to provide similar relief for small businesses that are Part 135 air cargo operators and other aviation businesses, including FBOs that provide ground handling services to the commercial airlines, who have filed applications for relief under the same Subpart B of the CARES Act,” said NATA President and CEO Timothy Obitts.
The Treasury Department will not require passenger air carriers that will receive $100 million of payroll assistance or less to provide financial instruments as appropriate compensation. As such, for passenger air carriers with payroll support payments up to $100 million, funds will be available promptly upon approval of their applications. The majority of these requests seek less than $10 million. Due to the small size of the awards, and not needing to conduct negotiations over financial instruments, Treasury anticipates being able to promptly distribute the funds.
“Small and medium-sized passenger aviation businesses are particularly vulnerable to the disruption from COVID 19. This determination will provide significant support to workers and businesses across the country, while also appropriately compensating taxpayers,” said Secretary Mnuchin in the Department’s press release.
“The staff at Treasury has been truly exceptional in terms of their accessibility and receptiveness to our questions and concerns. During consideration of the CARES Act, NATA fought hard on behalf of our members to ensure they would be eligible for assistance. We are grateful that the Secretary has used his authority to quickly assist the employees of our member companies,” said Jonathon Freye, NATA Vice President of Government and Public Affairs.
According to guidance by the Treasury Department, applications will continue to be accepted “until 11:59 p.m. EDT on April 27, 2020. However, applications submitted after April 3 may receive less immediate consideration. Applications received after April 27, 2020 may or may not be considered at the discretion of the Treasury Department, subject to the availability of funds.”
