CARES Act: General Aviation and Small Business Focus
The $2 trillion Coronavirus Aid, Relief, and Economic Security Act (CARES Act) was signed into law last week, offering assistance for many industries and business types.
Since we’re all here for airports – general aviation airports and the businesses they support, in particular – we’ve highlighted the implications of the CARES Act here. NATA and NBAA have indicated they’re expecting to request more assistance in coming months.
Much of this assistance funding will come from the US Treasury, and we’ll hopefully hear soon from FAA on an implementation plan and process.
General Aviation Airports
No less than $100 million is programmed for general aviation airports, minus $100,000 for FAA grant oversight – AOPA breaks this down at only about $36,000 each NPIAS general aviation airport – but there are two great presumed caveats that grants:
can be for ‘any purpose for which airport revenues may lawfully be used’ so it’s possible funds could be used for allowable airport activities other than AIP capital projects, such as operations and maintenance
are 100% federal funds without a local share requirement
For airports under a State Block Grant Program, we will presume those programs will administer these funds, based on prior federal stimulus and supplemental programs.
FAA Airport Guidance
Directly from FAA’s Information for Airport Sponsors Considering COVID-19 Restrictions or Accommodations. This is new guidance separate from the CARES Act legislation.
Much of this guidance is for commercial service airports with concessionaires and multiple runways, though could be considered for general aviation airports.
airport sponsors must obtain FAA approval to allow airport closure for a non-aeronautical purpose
FAA continues to expect all airports to operate safely and stay open
airports have flexibility to defer the collection of rents and/or fees if the circumstances warrant
FAA notes this is informational only and ‘not legally binding in its own right and will not be relied upon by the FAA as a separate basis for affirmative enforcement action or other administrative penalty.’
Read more of FAA’s info sheet, online here.
Additional FAA guidance for airports considering quarantining passengers here.
Small General Aviation Businesses
Repair Stations
Financial assistance to repair stations certified under 14 CFR Part 145 is wrapped into the assistance programs for passenger airlines at $25 billion. These are loans and loan guarantees with some strict requirements, in addition to the small business assistance programs mentioned below.
Check out the guidance document released yesterday by the US Treasury for preliminary application procedures.
Charter
Certain crew training requirements for 14 CFR Part 135 and 121 operators are temporary exempt and/or have alternative methods to meet the requirements.
Small Business Assistance Programs
This comprehensive Small Business Owner’s Guide is an excellent summary of programs authorized by CARES Act with links to additional Small Business Administration (SBA) guidance webpages.
US Treasury has program and application details already posted on their CARES Act webpage.
Also take a look at Gusto’s detailed explanation of the earlier Families First Coronavirus Response Act (FFCRA) legislation, which includes sick leave tax credits to small businesses.
Certain Aviation Taxes
Collection of commercial aviation kerosene fuel tax and passenger ticket and cargo taxes are temporarily suspended through January 2021. We’ll be very interested in how this will affect future AIP funding.
Expiring Medical Certificates
Pilots temporarily will be allowed to continue flying with expired medical certificates between 31 March and 30 June 2020. This is an FAA exemption outside of the CARES Act.
Further Light Reading
NATA’s website is packed with incredibly generous and comprehensive content available free to non-members, including daily legislative briefing summaries.
NBAA’s COVID-19 page and webinar series for aviation businesses.
And, here’s the full 800+page law in all its glory, if that’s your thing. Warning: may require TP hoarding status at your location.
Webinar Friday, 3 April at Noon Eastern
As a way to be of service, you and your colleagues are invited to join us on for a brief webinar this Friday to hear about the latest on the CARES Act and recent FAA guidance.
Mark your calendar for Friday, 3 April 2020 at noon Eastern and register for the webinar here.
The webinar will be recorded, so sign up now to receive the link to replay later at your convenience.
More Summaries and Analysis to Come
Please email us with your questions and/or if there is a way we can support you right now.
We invite you to keep up with all of our content on pending and future legislation related to airports by subscribing to our newsletter here.
view the CARES Act: General Aviation Focus Webinar Here
