A California aviation management company to the elite is sharing the benefits of a taxpayer-financed loan with its private jet-owning clients after it won the loan through the PPP, according to 3 clients and a copy of a letter announcing the plan.
CLA is unusual both because it's a major player in the aviation industry and because its executives say it qualifies as a small business for the purposes of the new lending program. The CARES Act created its own matrix of eligibility standards for small businesses, which include companies with fewer than 500 U.S.-based employees, caps on revenue and a variety of metrics.
So when the CARES Act was enacted, CLA had three obvious options: forgo the loan, take all the money for itself, even though its revenue is supported by jet-owning clients, or devise a way for the clients to share the bounty. The account credits allow for the latter. In the letter to jet owners, Wright, the company's CFO, wrote that the credits won't be awarded until after the loan is forgiven and that owners would have to repay CLA if the company is"subsequently deemed ineligible" for the program"upon audit."Many private jet owners have no interest in publicity about their planes.
The bank generally represents both U.S. citizens and foreign nationals who own airplanes. He declined to say whether any of the clients it shares with Clay Lacy Aviation aren't Americans.
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