US: Treasury urges airlines to apply for payroll grants by Friday

The Treasury Department released new details Monday night on how it will award grants and loans for airlines affected by the coronavirus pandemic, and urged companies to submit some applications by Friday to begin receiving funds as soon as possible. The aid was approved as part of a $2t economic relief package Congress passed last week, which included $25b in grants, along with $25b in loans and loan guarantees for passenger airlines, $4b for cargo carriers and $17b for other firms critical to maintaining national security. The Treasury said Monday night that passenger and cargo airline companies should submit their requests for grants to cover payroll expenses no later than 5 p.m. on April 3, or risk processing delays, and applications submitted after 11:59 p.m. on April 27 may not be approved. Payroll-support grants will be based on an airline’s total salaries and benefits paid to employees from April 1 through Sept. 30, and are contingent on the companies refraining from involuntary layoffs, furloughs or salary reductions during that time period, the Treasury said. Companies must also identify in their applications any financial instruments, such as warrants or equity, and proposed terms “to provide appropriate compensation for the government,” the Treasury guidance said. The law authorised Treasury Secretary Steven Mnuchin to take a stake in airlines as part of the grant and loan agreements.<br/>