3101. Short title
This title may be cited as the “Coronavirus Economic Stabilization Act of 2020”.
Division C — Assistance to severely distressed sectors of the United States economy
C Assistance to severely distressed sectors of the United States economy
I Economic Stabilization
3102. Emergency relief through loans and loan guarantees
In general— Notwithstanding any other provision of law, to provide liquidity to eligible businesses related to losses incurred as a direct result of coronavirus, the Secretary is authorized to make or guarantee loans to eligible businesses that do not, in the aggregate, exceed $208,000,000,000 and provide the subsidy amounts necessary for such loans and loan guarantees in accordance with the provisions of the Federal Credit Reform Act of 1990 (2 U.S.C. 661 et seq.).
Distribution of loans and loan guarantees— Loans and loan guarantees made pursuant to subsection (a) shall be made available to eligible business as follows:
Not more than $50,000,000,000 shall be available for passenger air carriers.
Not more than $8,000,000,000 shall be available for cargo air carriers.
Not more than $150,000,000,000 shall be available for other eligible businesses.
Loans and loan guarantees—
In general— The Secretary shall review and decide on applications for loans and loan guarantees under this section and may enter into agreements to make or guarantee loans to one or more obligors if the Secretary determines, in the Secretary's discretion, that—
the obligor is a eligible business for which credit is not reasonably available at the time of the transaction;
the intended obligation by the obligor is prudently incurred; and
the loan is sufficiently secured.
Terms and limitations—
Forms; terms and conditions— A loan or loan guarantee shall be issued under this section in such form and on such terms and conditions and contain such covenants, representatives, warranties, and requirements (including requirements for audits) as the Secretary determines appropriate. Any loans made by the Secretary under this section shall be at a rate not less than a rate determined by the Secretary taking into consideration the current average yield on outstanding marketable obligations of the United States of comparable maturity.
Procedures— As soon as practicable, but in no case later than 10 days after the date of enactment of this Act, the Secretary shall publish procedures for application and minimum requirements, which may be supplemented by the Secretary in the Secretary's discretion, for the making of loans and loan guarantees under this section.
Financial protection of government—
In general— To the extent feasible and practicable, the Secretary shall ensure that the Federal Government is compensated for the risk assumed in making loans and loan guarantees under this section.
Government participation in gains— If an eligible business receives a loan or loan guarantee from the Federal Government under this section, the Secretary is authorized to enter into contracts under which the Federal Government, contingent on the financial success of the eligible business, would participate in the gains of the eligible business or its security holders through the use of such instruments as warrants, stock options, common or preferred stock, or other appropriate equity instruments.
Deposit of proceeds— Amounts collected by the Secretary under this section, including the proceeds of investments, earnings, and interest collected, shall be deposited as follows:
Amounts collected from eligible businesses that received loans or loan guarantees under paragraph (1) or (2) of subsection (b) shall be deposited in the Airport and Airway Trust Fund under section 9502 of the Internal Revenue Code of 1986.
Amounts collected from eligible businesses that received loans or loan guarantees under paragraph (3) of subsection (b) shall be deposited in the Treasury as miscellaneous receipts.
Administrative expenses— Notwithstanding any other provision of law, the Secretary may use $100,000,000 of the funds made available under this section to pay costs and administrative expenses associated with the provision of direct loans or guarantees authorized under this section.
by striking “and” before “section 3”; and
by inserting “and the Coronavirus Economic Stabilization Act of 2020,” before “and for investing”.
3103. Limitation on certain employee compensation
In general— The Secretary may only enter into a loan or loan agreement under section 3102(a) with an eligible business after the eligible business enters into a legally binding agreement with the Secretary that, during the 2-year period beginning March 1, 2020, and ending March 1, 2022, no officer or employee of the eligible business whose total compensation exceeded $425,000 in calendar year 2019 (other than an employee whose compensation is determined through an existing collective bargaining agreement entered into prior to March 1, 2020)—
will receive from the eligible business total compensation which exceeds, during any 12 consecutive months of such 2-year period, the total compensation received by the officer or employee from the eligible business in calendar year 2019; and
will receive from the eligible business severance pay or other benefits upon termination of employment with the eligible business which exceeds twice the maximum total compensation received by the officer or employee from the eligible business in calendar year 2019.
Total compensation defined— In this section, the term total compensation includes salary, bonuses, awards of stock, and other financial benefits provided by an eligible business to an officer or employee of the eligible business.
3104. Continuation of certain air service
The Secretary of Transportation is authorized to require, to the extent reasonable and practicable, an air carrier receiving loans and loan guarantees under section 3102 to maintain scheduled air transportation service as the Secretary of Transportation deems necessary to ensure services to any point served by that carrier before March 1, 2020. When considering whether to exercise the authority granted by this section, the Secretary of Transportation shall take into consideration the air transportation needs of small and remote communities.
3105. Reports
Secretary— The Secretary shall, with respect to the loans and loan guarantees provided under section 3102, make such reports as are required under section 5302 or title 31, United States Code.
Government accountability office—
Study— The Comptroller General of the United States shall conduct a study on the loans and loan guarantees provided under section 3102.
Report— Not later than 9 months after the date of enactment of this Act, and annually thereafter through the year succeeding the last year for which loans or loan guarantees provided under section 3102 are in effect, the Comptroller General shall submit to the Committee on Transportation and Infrastructure, the Committee on Appropriations, and the Committee on the Budget of the House of Representatives and the Committee on Commerce, Science, and Transportation, the Committee on Appropriations, and the Committee on the Budget of the Senate a report on the loans and loan guarantees provided under section 3102.
3106. Coordination with Secretary of Transportation
In implementing this title with respect to air carriers, the Secretary shall coordinate with the Secretary of Transportation.
3107. Definitions
In this title:
Air carrier— The term air carrier has the meaning such term has under section 40102 of title 49, United States Code.
Coronavirus— The term coronavirus means SARS-CoV-2 or another coronavirus with pandemic potential.
Covered loss— The term covered loss includes losses, direct or incremental, incurred as a result of coronavirus, as determined by the Secretary.
Eligible business— The term eligible business means—
an air carrier; or
a United States business that has incurred covered losses such that the continued operations of the business are jeopardized, as determined by the Secretary, and that has not otherwise applied for or received economic relief in the form of loans or loan guarantees provided under any other provision of this Act.
Secretary— The term Secretary means the Secretary of the Treasury, or the designee of the Secretary of the Treasury.
3108. Rule of construction
Nothing in this title shall be construed to allow the Secretary to provide relief to eligible businesses except in the form of secured loans and loan guarantees as provided in this title and under terms and conditions that are in the interest of the Federal Government.
II Aviation excise taxes
3201. Suspension of certain aviation excise taxes
Transportation by air— In the case of any payment for transportation by air (including any amount treated as paid for transportation by air by reason of section 4261(e)(3) of the Internal Revenue Code of 1986) during the excise tax holiday period, no tax shall be imposed under section 4261 or 4271 of such Code. The preceding sentence shall not apply to amounts paid for transportation on or before the date of the enactment of this Act.
Use of kerosene in commercial aviation— In the case of kerosene used in commercial aviation (as defined in section 4083 of the Internal Revenue Code of 1986) during the excise tax holiday period—
no tax shall be imposed on such kerosene under—
section 4041(c) of the Internal Revenue Code of 1986, or
section 4081 of such Code (other than at the rate provided in subsection (a)(2)(B) thereof), and
section 6427(l) of such Code shall be applied—
by treating such use as a nontaxable use, and
without regard to paragraph (4)(A)(ii) thereof.
Excise tax holiday period— For purposes of section, the term excise tax holiday period means the period beginning after the date of the enactment of this section and ending before January 1, 2021.