U.S. Department of the Treasury

Like the Payroll Support Program under the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) (PSP1) and PSP2, PSP3 provides payroll support to passenger air carriers and certain contractors for the continuation of payment of employee wages, salaries, and benefits. Up to $14 billion is available for passenger air carriers and up to $1 billion is available for certain contractors. As specified in section 7301 of the ARP, the amount to be received by each PSP3 passenger air carrier is based on the amount that the passenger carrier received under PSP2 relative to the amount of funding made available under PSP3, and the amount to be received by each PSP3 contractor is equal to the amount that the contractor received under PSP2.  Payroll Support under PSP3 is provided on similar terms and conditions as in PSP1 and PSP2, including a requirement for participants to refrain from conducting involuntary furloughs or terminations of employees through the later of September 30, 2021, and the date on which the entity’s PSP3 funds are exhausted.

Passenger air carriers receiving payroll support of more than $100 million and contractors receiving more than $37.5 million (in each case based solely on amounts received in PSP3) are required to provide financial instruments as appropriate compensation to the U.S. Government for the provision of the financial assistance.

The Treasury Department is committed to implementing PSP3 with transparency. Treasury is providing information on PSP3, including program participants, the amount of payroll support to the participants, and any financial instruments provided by the participants. This information will be periodically updated as Treasury enters into additional PSP3 agreements.

Payroll Support Program Extension Payments PSP3 (CSV)

Data current as of 07/27/2022

Passenger Carriers

Contractor

Other

1. In certain cases where multiple affiliated entities were approved as eligible recipients, only one affiliate or a parent company is listed.
2. The location provided is the address included by participants in their applications and may not include all locations in which a recipient operates.
3. Agreement Date is the date the PSP Agreement was fully executed.
4. The total payroll support under PSP3.
5. The note has a duration of 10 years. For passenger air carriers, when applicable, this is equal to 30 percent of the payroll support provided to the participant over $100 million. For contractors, when applicable, this is equal to 44 percent of the payroll support provided to the participant over $37.5 million. For passenger air carriers and contractors, the cash interest rate on the note is 1 percent per year in the first five years, and converts to the Secured Overnight Financing Rate plus 2 percent per year in the last five years. Cash interest on the notes is payable semiannually on March 31 and September 30 of each year beginning on September 30, 2021. For contractors who have not issued equity securities that are traded on a national securities exchange, the note also includes a payment-in-kind interest rate of 3 percent per year in the first five years, with an increase of 1 percentage point per year in years six through ten.
6. Total Number of Warrants: The warrants provide Treasury with the right to purchase shares of common stock or receive a cash payment. The number of warrants required is equal to 10 percent of the principal amount of the note issued by the participant, divided by an exercise price. The exercise price for passenger air carriers is generally equal to the value of the shares as of market close on March 10, 2021. The warrants are exercisable for a five-year term.
7. Warrant Exercise Price: The strike price of the warrants.
8. Alaska Airlines, Inc., issued a note and warrants related to payroll support provided to both Alaska Airlines, Inc., and McGee Air Services, Inc. McGee Air Services, Inc., is an eligible contractor and a wholly owned subsidiary of Alaska Airlines, Inc.
9. Lufthansa Technik Component Services LLC issued a note related to payroll support provided to both Hawker Pacific Aerospace and Lufthansa Technik Puerto Rico, LLC, who are eligible contractors and wholly owned subsidiaries of Lufthansa Technik Component Services LLC.

NOTE: Additional payroll support terms and conditions may be found in the Payroll Support Program Agreement. Additional award and recipient data will be made available on or around May 29, 2020 at USASpending.gov under Catalog of Federal Domestic Assistance (CFDA) number 21.018.