While most discussion of the airline bailout has zeroed in on a $58 billion figure for loans and grants, there’s actually $20 billion more than that when you include Boeing and airline contractors – a total of $78 billion that’s available.
- $25 billion in loans to passenger airlines
- $4 billion in loans to cargo airlines
- $17 billion for businesses that are “critical to maintaining national security” (a euphemism for Boeing)
- $29 billion payroll support grants to passenger and cargo airlines
- $3 billion payroll support grants for airline contractors
The Treasury Department has released its guidelines and application for the payroll support grants for passenger and cargo airlines and contractors. It’s worth noting that while it’s generally being reported that taking these grants means you cannot lay off employees, in fact you can still lay off 10% of your workforce if needed.
There will soon be a web-based application, but in the meantime anyone who thinks they’re eligible for payroll support grants can email their request to PayrollSupportApplications@treasury.gov.
You can find the application here. Completed applications submitted by end of business Friday will receive expedited approval. The deadline to guarantee consideration of an application is midnight, April 27, 2020.
The application asks for basic information like contact names, electronic funds transfer details, and number of employees and wage totals by month for several months last year. You select the type of business you are, so Treasury knows which pot of funds to consider you from. And then attach copies of federal 941 tax forms for April 1, 2019 to September 30, 2019. Sign the package, and that’s it. The money printing machine goes brrrr and funds wind up in your account.
In exchange for this support you’re expected to offer “warrants, options, preferred stock, debt securities, notes, or other financial instruments issued by the applicant.” The federal Paperwork Reduction Act Notice estimates that your request for billions of dollars should take just two hours to complete.
Matthew lesko used to advise, “the ones who know about the programs are the ones who get the money!” So out of those of you with a good faith belief that you’re an airline contractor under the Act, who’s in?