Treasury has paid $12.4b in aviation payroll support

The US Treasury said it has paid out another $9.5b in funds to the aviation industry under a program designed to shore up carriers reeling from the coronavirus pandemic. Meanwhile, an application form was released on Saturday for loans destined for “businesses critical to maintaining national security,” Treasury said. Total disbursements so far under the CARES Act have reached to $12.4b to 93 air carriers, including major airlines and smaller passenger carriers, Treasury said. Additional funds will be paid out on a rolling basis. The funds under the Payroll Support Program must be used for employee wages, salaries and benefits. Treasury announced certain details of the program for cargo air carriers and contractors, as determined by Treasury Secretary Steven Mnuchin. Cargo carriers receiving $50m or less of payroll support, and contractors getting $37.5m or less, will not be required to provide financial instruments as compensation for the assistance. The majority of cargo air carriers and contractors seek less than $10m.<br/>