The federal coronavirus aid bill that was signed into law March 27 provides $25.0 billion for loans and loan guarantees for passenger air carriers, $4.0 billion for loans and loan guarantees for cargo air carriers, and $17.0 billion for loans and loan guarantees for “businesses critical to maintaining national security.”

The duration of such loans may not exceed five years. To take the loans, a business “must have incurred or is expected to incur covered losses such that the continued operations of the business are jeopardized.” Businesses that take the loans may not buy back stock, pay dividends, or make capital distributions until 12 months after the loan or loan guarantee is no longer outstanding. Additionally, a business that takes the loans must maintain its March 24, 2020 employment levels until Sept. 30, 2020 “and in any case shall not reduce its employment levels by more than 10 percent from the levels on such date.” There are also limits on employee compensation for businesses that take the loans.

Additionally, the bill provides funds “to preserve aviation jobs and compensate air carrier industry workers.” To continue paying employee wages and benefits, the bill provides $25.0 billion for passenger air carriers, $4.0 billion for cargo air carriers, and $3.0 billion for contractors (under contract with passenger air carriers for catering, loading aircraft, security, ticketing, etc.). These funds will be available based on salaries and benefits from April 1, 2019 through Sept. 30, 2019. To receive funds, air carriers and contractors may not furlough employees or reduce pay and benefits until Sept. 30, 2020. They may not buy back stock, pay dividends, or make capital distributions through Sept. 30, 2021, and there are limits on employee compensation.

Air carriers that take the loans or the payroll funding could be required to maintain scheduled service, “to ensure services to any point served by that carrier before March 1, 2020.”

The bill suspends the federal excise taxes on transportation by air and the use of kerosene in commercial aviation through Dec. 31, 2020. The Joint Committee on Taxation estimates that this will reduce federal revenues by $4.3 billion.

Finally, the bill includes $10.0 billion in grants-in-aid for airports “to prevent, prepare for, and respond to coronavirus.” They must continue to employ at least 90 percent of their workforce through Dec. 31, 2020.

The Puget Sound Business Journal reports that airline passenger traffic at Sea-Tac dropped by 86 percent last week. The Port of Seattle is having a special meeting on Wednesday to consider relief for Port employees and tenants and the airport.

(For more on the federal aid bill, see here, here, here, and here.)