Yellow Corp. Defends Covid-Aid Loan in Response to House Inquiry
(Bloomberg) -- Trucking company Yellow Corp. said there was nothing inappropriate about the $700 million pandemic relief loan it received, and that it will “conclusively” confirm that to a House panel investigating the matter.
The loan was made under a program to offset losses for businesses critical to national security. It enabled Yellow to remain “a critical link” in numerous supply chains throughout the U.S, and to complete millions of freight shipments, including hundreds of thousands for the Department of Defense, company Chief Executive Officer Darren Hawkins wrote in a letter Thursday to the Select Subcommittee on the Coronavirus Crisis.
Hawkins wrote that the company would give the committee documents that “will conclusively confirm that the information the Company provided in applying for the loan was completely accurate, and the use of the loan funds were and are completely appropriate, transparent, and in full compliance with the loan agreements.”
He said the aid allowed the company “to provide the uninterrupted delivery of desperately needed military supplies, personal protective equipment, household goods, medicines, food and other necessities.”
The chairman of the subcommittee, Democratic Representative Jim Clyburn, announced last week that the panel was investigating the loan, saying it was “very questionable” whether the company qualifies for the assistance.
The probe is the latest in a series of inquiries by Congress into the trillions of dollars in Cares Act Program aid for businesses critical to national security under former President Donald Trump. Clyburn said his panel is looking into whether Trump Administration “may have mismanaged the national security loan program and squandered taxpayer funds in a manner not authorized by law.”
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