APEX Supports Members Applying for CARES Stimulus Funds
The financial assistance allocated for US airlines by the CARES Act totals $50 billion, the amount initially proposed by Airlines for America and endorsed by APEX. Airline suppliers are eligible for $3 billion in payroll support – APEX had called for an $12.5 billion to support these companies.
The US Department of the Treasury issued guidelines yesterday instructing airlines and contractors how to apply for government aid. Up to $53 billion in funds and loans are available to companies in the commercial air travel sector, following the enactment into law of the Coronavirus Aid, Relief and Economic Security (CARES) Act on March 27.
Coronavirus News: Regular Updates on COVID-19’s Impact on the Airline Industry
“APEX/IFSA members reaching out personally to Congress deserve our deepest thanks because everyone that took action helped to make a difference in the US CARES Act,” said APEX/IFSA CEO Dr. Joe Leader. “In the weeks ahead, our industry will be facing the greatest challenges in its history. The CARES Act provides a vital lifeline to airlines, suppliers and businesses that we hope other governments around the world follow to support the core industry that connects our world.”
To support members seeking financial assistance, APEX has reached out to all of its member companies, highlighting important information and deadlines included in the two documents released by the treasury department. One of the documents outlines the application process for payroll support and the other offers preliminary information about applying for government loans.
The deadline to apply for expedited payroll support is April 3 at 5 p.m. EDT. Applications received between this time and the final deadline (April 27 at 11:59 p.m. EDT) will not be processed as quickly. Deadlines for loan applications have not yet been specified.
“The US CARES act provides a vital lifeline to airlines, suppliers and businesses that we hope other governments around the world follow.” – APEX/IFSA CEO Dr. Joe Leader
The five-page payroll support application form, which is included toward the end of the guidelines document, must be completed and submitted to PayrollSupportApplication@treasury.com. A web-based version of the form will be available later this week. The amount awarded to each company will be determined by the compensation paid to all of its employees from April 1, 2019, to September 30, 2019.
A total of $25 billion in payroll support is available for airlines, with another $3 billion reserved for contractors. According to the treasury department, eligible contractors are companies that “perform catering functions, functions at airports related to the transportation of persons, property or mail, including but not limited to the loading and unloading of property on aircraft, assistance to passengers, security, ticketing and check-in, ground-handling of aircraft, or aircraft cleaning, sanitizing and waste removal.” Cargo air carries can apply for a portion of the $4 billion set aside for them.
The loan application form has not yet been released, but up to $25 billion will be available to airlines and eligible contractors. Another $4 billion will be delegated to cargo air carriers and $17 billion is assigned to businesses critical to maintaining national security.
APEX has been actively appealing to governments for aid on behalf of its members since COVID-19 began affecting air travel. An initial announcement advocated for tax relief for airlines globally. APEX will now engage the European Commission to request relief for the aviation industry. The goal is $250 billion worth of support from governments globally.