Financial Assistance: Lessons Learned from CARES Act Loan Program for Aviation and Other Eligible Businesses
Abstract
The COVID-19 pandemic has resulted in catastrophic loss of life and substantial damage to the global economy, including the aviation sector. U.S. passenger air carriers have lost almost $20 billion and over 47,000 jobs in 2020, with losses forecast to continue into 2021. In March 2020, Congress passed, and the President signed into law, the CARES Act, which provides over $2trillion in emergency assistance and health care response for individuals, families, and businesses affected by the COVID-19 pandemic, including businesses in the aviation sector. The CARES Act contained a provision for GAO to review the loans provided under the Act. This report examines, among other things, eligible businesses' participation in the loan program and lessons learned from the program for Congress and Treasury. GAO reviewed Treasury documents and data on applications received and loans executed; interviewed Treasury officials on the design and implementation of the program; and interviewed eight industry associations that represent the range of businesses eligible for loans, eight passenger air carriers, and other selected applicants to gather their views on the program. GAO will continue to monitor and report on CARES Act assistance to the aviation industry. This oversight includes the loan program and another Treasury program--the Payroll Support Program--that provided assistance to certain aviation businesses to continue paying employee wages, salaries, and benefits.
Document Details
- Document Type
- Technical Report
- Publication Date
- Dec 10, 2020
- Accession Number
- AD1153654
Entities
People
- Alexandra Rouse
- Amy Abramowitz
- Camilo Flores
- Christie A. Pugnetti
- Delwen Jones
- Farrah Stone
- Heather Krause
- Heather Macleod
- Janet Temko-blinder
- Joanie Lofgren
- Joshua Ormond
- Kim Fook Lee
- Marcia Carlson
- Maureen Luna-long
- Mikey Erb
- Patrick Tierney
- Paul Aussendorf
- Sarah Arnett
- Stephanie Purcell
- Tarek Mahmassani
- Ted Hu
Organizations
- United States Government Accountability Office