Treasury to Provide Small Airlines Financial Support Without Collateral

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Treasury to Provide Small Airlines Financial Support Without Collateral
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The Treasury Department said airlines requesting less than $100 million in payroll-assistance grants won’t be required to provide collateral in exchange for the aid

WASHINGTON—The government won’t take a stake in small airlines seeking federal aid as part of a $2.2 trillion economic-stimulus package passed amid the coronavirus pandemic, the Treasury Department said Friday.

The department said airlines requesting less than $100 million in payroll-assistance grants won’t be required to provide collateral in exchange for the aid “as a result of benefits to the public,” including requirements that the companies maintain needed air service and refrain from involuntary furloughs or layoffs.

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