Sec. 3102. Emergency relief through loans and loan guarantees
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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.). 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. 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. 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. 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. 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. 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. 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. 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. Section 10(a) of the Gold Reserve Act of 1934 ( 31 U.S.C. 5302(a) ) is amended— by striking and before section 3 ; and by inserting and the Coronavirus Economic Stabilization Act of 2020, before and for investing .
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