21.018: Coronavirus Relief - Pandemic Relief for Aviation Workers

21.018

Inactive

Sept. 8, 2022

Sept. 8, 2022

The Payroll Support Program (PSP1), Payroll Support Program Extension (PSP2), and Third Payroll Support Program (PSP3) provide financial assistance to passenger air carriers, cargo air carriers, and certain aviation industry contractors to preserve aviation jobs. The financial assistance payments must be used exclusively for the continuation of payment of employee salaries, wages, and benefits. The Coronavirus Aid, Relief, and Economic Security (CARES) Act, enacted March 27, 2020, established the Payroll Support Program (PSP1) and provides up to $25 billion, $4 billion, and $3 billion for passenger air carriers, cargo air carriers, and certain contractors, respectively. The Payroll Support Program Extension (PSP2), authorized under Subtitle A of Title IV of Division N of the Consolidated Appropriations Act, 2021 (PSP Extension Law), provides up to $15 billion for passenger air carriers and $1 billion for certain contractors. PSP3, authorized under Title VII, Subtitle C, Section 7301 of the American Rescue Plan Act of 2021, provides up to $14 billion for passenger air carriers and $1 billion for certain contractors.

Z - Salaries and Expenses

PSP1: Payments may only be provided to applicants that are eligible passenger air carriers, cargo air carriers, and contractors, as those terms are defined in the CARES Act and guidelines for PSP1. Only an entity (whether in the form of a corporation, limited liability company, sole proprietorship, or otherwise) that is individually eligible for PSP1 may receive financial assistance. To be eligible to receive payments, recipients must agree to the terms and conditions in the PSP1 Agreement and, if Treasury requires, provide certain financial instruments to provide appropriate compensation to the Federal Government for the provision of the financial assistance. PSP2: Payments may only be provided to applicants that are either eligible passenger air carriers or contractors, as defined in the PSP Extension Law and guidelines for PSP2. Only an entity (whether in the form of a corporation, limited liability company, sole proprietorship, or otherwise) that is individually eligible for PSP2 may receive financial assistance. If an applicant includes more than one affiliated entity in its application, Treasury will review each entity to determine whether it meets the eligibility criteria for a passenger air carrier or contractor. Any entity that is not itself an eligible passenger air carrier or contractor should not be included on a PSP2 application. To be eligible to receive payments, recipients must agree to the terms and conditions in the PSP2 Agreement. Passenger air carriers that receive over $100 million in financial assistance and contractors that receive over $37.5 million in financial assistance must provide certain financial instruments to provide appropriate compensation to the Federal Government for the provision of the financial assistance. PSP3: Under the ARP, Treasury has authority only to provide financial assistance under PSP3 to a passenger air carrier or contractor that (1) received assistance under PSP2; (2) provided air transportation or performed eligible contractor functions, as the case may be, as of March 31, 2021; and (3) has not conducted involuntary terminations or furloughs or reduced pay rates or benefits between March 31, 2021, and the date on which the air carrier or contractor makes certain certifications that will be included in its PSP3 agreement with Treasury. Only an entity (whether in the form of a corporation, limited liability company, sole proprietorship, or otherwise) that is individually eligible for PSP3 may receive payroll support.

Not Applicable

https://sam.gov/fal/21f2e36e97b747c1a97c14e5a07ec901/view