SkyWest to Receive $250 million through Payroll Support Program 3 Under the American Rescue Plan Act of 2021
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ST. GEORGE, Utah, April 23, 2021 /PRNewswire/ SkyWest, Inc. (NASDAQ: SKYW) ( SkyWest ) today announced that its wholly-owned subsidiary SkyWest Airlines has entered into a Payroll Support Program 3 Agreement with the U.S. Treasury Department to receive a total of approximately $250 million under the American Rescue Plan Act of 2021. SkyWest received half of the $250 million on April 23, 2021 and expects to receive the remaining funding during the second quarter of 2021. In consideration for the funding, approximately $45 million will be in the form of a ten-year, low interest unsecured term loan, and SkyWest will issue to the U.S. Treasury Department ( Treasury ) warrants to purchase approximately 78,317 shares of SkyWest common stock at a strike price of $57.47.
Operator
Welcome to the first-quarter 2021 conference call. My name is James, and I ll be your operator for today s call. [Operator instructions] I d now like to turn the call over to DeAnne Gabel, senior director, investor relations. DeAnne, you may begin.
DeAnne Gabel
Senior Director, Investor Relations
Thank you, James, and welcome, everyone, to Spirit Airlines first-quarter earnings call. This call is being recorded and simultaneously webcast. A replay of this call will be archived on our website for 60 days. Presenting on today s call are Ted Christie, Spirit s chief executive officer, Matt Klein, our chief commercial officer, and Scott Haralson, our chief financial officer.
On March 11, 2021, President Biden signed the American Rescue Plan Act of 2021
1 (ARP Act) into law, which provides approximately $1.9 trillion in financial assistance to individuals and industries impacted by COVID-19. The ARP Act continues certain payroll support programs contained in the Coronavirus Aid, Relief, and Economic Security Act
2 (CARES Act) and the Consolidated Appropriations Act, 2021
3 (CA Act), and provides an additional payroll support program that includes certain other entities in the aviation industry that were previously ineligible for financial assistance.
Specifically, Section 7202 of the ARP Act establishes a $3 billion payroll support program within the Department of Transportation (instead of the U.S. Treasury) that will provide grants to eligible aviation manufacturers and MROs to compensate “eligible employee groups.” Further, as the funds provided under the CA Act’s Payroll Support Programs were expected to be exhausted and the furlough protect