As we’ve discussed in prior blog posts (and in blog posts about the legislative process), there is a Covid relief grant program targeted for aviation manufacturing and aviation maintenance organizations. It was authorized in the March 11 American Rescue Plan Act (Public Law 117-7, sections 7201-02). The DOT has taken the next step in making the Aviation Manufacturing Jobs Protection (AMJP) Program a reality.
The AMJP is a grant program that provides eligible aviation companies with matching funds for a portion of your workforce (for six months). That portion can be up to 25% of your US workforce (so if your US manufacturing workforce is 500 people then the government will support payroll for up to 125 of them). In practice this means that the government pays for half of your payroll (for the eligible group) during this period. It is a great way to help recall furloughed employees, and to keep talented people employed while aviation recovers from Covid.
New Website!
We’d previously predicted that DOT would establish a website for information about the AMJP. That website is up and running! You can find it at https://www.transportation.gov/AMJP.
Grant Program Application
Setting up a new grant program takes a number of steps, including establishing the protocols for application, the metrics for determining eligibility, the methods for distributing the money, etc. One of those steps is getting authority for the agency to request application materials. This requirement is derived from the Paperwork Reduction Act, which requires that the White House Office of Management and Budget (OMB) authorize any effort by the government to collect information from the public. The DOT has published information about their paperwork request in the Federal Register.
For companies that are thinking about about applying for the AMJP, this step provides two important opportunities. First, it is an opportunity to influence the information collection efforts by submitting comments [MARPA has already penned a letter asking for expedited treatment of the analysis and approval process]. Second, it also previews the likely materials and questions that we will see in the AMJP application.
Bear in mind that the information collection is subject to change based on public input and based on OMB input, but it is likely that the AMJP application will look very much like a formatted version of what was published in the Federal Register. This means that we can start NOW to gather the information we will need to apply for this program.
One reason to start gathering this information now, rather than waiting, is because we expect that the Department of Transportation will provide a time-limited window for application. Therefore, if you will need days or weeks to gather the relevant application information then starting now makes it more likely that the information will be available to allow you make a rapid application when the application window opens.
Likely AMJP Application Elements (from the Federal Register)
- Legal name of the applicant
- Address, telephone, and email contact information
- Legal authority under which the applicant was established (e.g. incorporation)
- Name and title of the authorized representative of the applicant
- Identity of those assisting in the application, including outside accountants, attorneys, or auditors
- Which of the three statutory criteria does the applicant meet and how (including copies of FAA certificates or authorizations or AS9100 certificates):
- FAA production approval holder
- FAA Part 145 certificate holder
- Operates a process certified to AS9100 related to the design, development, or provision of an aviation product or service, including a part, component, or assembly
- Location where the applicant was legally established, created, or organized to do business
- Other identification numbers, including but not limited to:
- Employer/Taxpayer Identification Number (EIN/TIN)
- Data Universal Numbering System (DUNS) number
- Unique Entity Identifier under 2 CFR part 25, etc.
- Description of the applicant’s business operations, demonstrating how the applicant meets the statutory requirement for US operations; this may include:
- a listing of all business locations
- the number of employees (and the percentage of their time) engaged in aviation-related versus other business activities at each location
- Details sufficient to demonstrate how the applicant meets the requirement to have “involuntarily furloughed or laid off at least 10 percent of its workforce in 2020 as compared to 2019 or has experienced at least a 15 percent decline in 2020 revenues as compared to 2019. This is likely to be either:
- Aggregate numbers of personnel as of April 1, 2019 and April 1, 2020, or
- Total operating revenue figures for the applicant’s fiscal years ending 2019 and 2020.
- Certification that the applicant has not received a credit against applicable employment taxes under section 2301 of the CARES Act (26 U.S.C. 3111 note) for the immediately preceding calendar quarter ending before such agreement is entered into, or financial assistance under section 4113 of the CARES Act (15 U.S.C. 9073) (providing payroll support to air carriers and contractors), and is not currently expending financial assistance under the paycheck protection program established under section 7(a)(36) of the Small Business Act (15 U.S.C. 636(a)(36)), as of the date the employer submits an application under the AMJP.
- Definition of the applicant’s Eligible Employee Group.
- The actual aggregate total cost of compensation for the Eligible Employee Group for the six-month period ending March 31, 2021 [note: this period could change because it does not appear to match the statutory requirement].
- DOT anticipates requiring a breakdown of the compensation costs (e.g., aggregate base salaries versus other major benefit categories, including but not limited to medical benefits paid by the employer, paid leave, insurance premiums paid by the employer, employer match on employee retirement contributions, etc.).
- Applicants will be required to provide supporting documentation in sufficient detail to substantiate the preceding aggregate costs, like financial reports and redacted payroll reports
- Whether the applicant business entity is currently engaged in any legal proceeding that could jeopardize its ability to fulfill the legal commitments required in statute as conditions for receiving funds under the AMJP (e.g. Bankruptcy, potential merger or acquisition discussions, or current litigation against the applicant)
- Whether the applicant is delinquent on any debt to any Federal agency, along with supporting details.
- Certification by the applicant that they can and will enter into a legal agreement with DOT, that will require the applicant to:
- provide the remainder of the payroll to the Eligible Employee Group, and
- refrain from any involuntary layoffs, furloughs, or reductions in pay rates or benefits for the Eligible Employee Group
Note that all applicants will be required to have pre-registered with the System for Award Management (SAM) at https://sam.gov/SAM/.