Regulatory Alert: FAA Releases Updated FAQ Guidance for Airport Coronavirus Response Grant Program
April 9, 2021
This afternoon the Federal Aviation Administration (FAA) released an updated frequently asked questions (FAQ) document that provides guidance for airport sponsors on how FAA will administer the 'Airport Coronavirus Response Grant Program' (ACRGP). As airports are aware, the Coronavirus Response and Relief Supplemental Appropriation Act (CRRSAA) provided $2 billion in relief for airports and eligible concessionaires, including $1.75 billion for commercial service and certain cargo airports and $200 million to primary airports for concessionaire relief. 
The updated FAQ document released today includes additional details for airports on administering concessionaire relief, including how to prepare concessionaire relief plans for payment requests and how to address improper relief benefits. In addition, FAA posted a series of sample documents for airports relating to ACRGP, including a sample closeout report; a sample concessionaire certification; and a sample concessionaire relief plan. AAAE anticipates the agency's updated guidance on concessionaire relief will provide a foundation for rolling out the Airport Rescue Grant Program within the next several weeks. 
You can view the updated FAQ guidance for ACRGP here. AAAE has also highlighted where FAA updated the FAQ document in this version here. A brief review of the changes included in the guidance today is provided below. For a summary of the entire FAA FAQ guidance for ACRGP, see our January 19 Airport Alert and February 12 Airport Alert. 
Updated FAQ Guidance on Airport Coronavirus Response Grant Program
Developing Concessionaire Relief Plans. FAA guidance has indicated that airport sponsors should prepare a concessionaire relief plan to expedite the agency's review and approval of ACRGP concessionaire grant payments. The updated guidance released today provides more details on how that relief plan should be prepared. FAA also made available a sample 'Airport Concessions Relief Plan.' 
Q-CR15: How can an airport sponsor plan its concession relief program in order to hasten FAA's approval of Airport Coronavirus Response Grant Relief concession relief grant payments?
A: FAA will use the existing U.S. Department of Transportation Delphi eInvoicing system for concession relief payment requests. FAA will review payment requests manually. Sponsors should identify: 
A payment request should include the information identified above and the administration fee retained by the sponsor, not to exceed 2% of the allocation. A sample Airport Concessions Relief Plan is available.
Addressing Improper Concessionaire Relief Benefits. FAA updated one FAQ in the guidance document to address the situation where an airport sponsor becomes aware that a concessionaire is ineligible for relief and how to address any improper relief benefits that may have been provided. 
Q-CR7: Are there requirements for an airport concession to obtain rent or MAG relief from an airport sponsor?
A: Yes. An airport concession must certify to the airport sponsor that it has not received a second draw or assistance for a covered loan under section 7(a)(37) of the Small Business Act (15 U.S.C. 636(a)(37)) that has been applied toward rent or MAG. Additionally, an airport concession receiving relief from an airport sponsor may not apply for a covered loan under 15 U.S.C. 636(a)(37). Airport sponsors should collect these certifications and retain them for their records in the same manner that they retain invoices associated with its general Airport Coronavirus Response Grants. A sample Airport Concession Certification is available. 
If an airport sponsor becomes aware that a concession is ineligible for concessions relief under an Airport Coronavirus Response Grant, the airport sponsor is responsible for addressing any improper relief benefit. Federal funds may not be expended contrary to CRRSA requirements. The airport sponsor must notify the FAA at CARESAirports@faa.gov as soon as practicable after becoming aware of the improper relief benefit. It also must allocate an amount equal to the improper relief benefit among remaining eligible airport concessions in an amount that reflects each eligible airport concession's proportional share of the total amount of rent and MAG of all eligible airport concessions at the airport, and it must re-submit the information submitted for its payment request (see Q-CR15) showing the allocation correction. The airport sponsor also may require re-payment of the improper relief benefit.
Reimbursing Contract Tower Operation Expenses. FAA added one new FAQ to the guidance document that addresses whether airports need to submit separate payment requests for expenses related to FAA contract tower operations. 
Q-I4: Should airport sponsors submit separate payment requests for expenses related to FAA contract tower operations?
A: Yes. Separate payment requests should be submitted for FAA contract tower operations expenses to ensure these payments are processed against the correct funds. Additional information regarding FAA contract tower funding is provided in Q-CT2 and Q-CT3. 
This afternoon the Federal Aviation Administration (FAA) released an updated frequently asked questions (FAQ) document that provides guidance for airport sponsors on how FAA will administer the 'Airport Coronavirus Response Grant Program' (ACRGP). As airports are aware, the Coronavirus Response and Relief Supplemental Appropriation Act (CRRSAA) provided $2 billion in relief for airports and eligible concessionaires, including $1.75 billion for commercial service and certain cargo airports and $200 million to primary airports for concessionaire relief. 
The updated FAQ document released today includes additional details for airports on administering concessionaire relief, including how to prepare concessionaire relief plans for payment requests and how to address improper relief benefits. In addition, FAA posted a series of sample documents for airports relating to ACRGP, including a sample closeout report; a sample concessionaire certification; and a sample concessionaire relief plan. AAAE anticipates the agency's updated guidance on concessionaire relief will provide a foundation for rolling out the Airport Rescue Grant Program within the next several weeks. 
You can view the updated FAQ guidance for ACRGP here. AAAE has also highlighted where FAA updated the FAQ document in this version here. A brief review of the changes included in the guidance today is provided below. For a summary of the entire FAA FAQ guidance for ACRGP, see our January 19 Airport Alert and February 12 Airport Alert. 
Updated FAQ Guidance on Airport Coronavirus Response Grant Program
Developing Concessionaire Relief Plans. FAA guidance has indicated that airport sponsors should prepare a concessionaire relief plan to expedite the agency's review and approval of ACRGP concessionaire grant payments. The updated guidance released today provides more details on how that relief plan should be prepared. FAA also made available a sample 'Airport Concessions Relief Plan.' 
Q-CR15: How can an airport sponsor plan its concession relief program in order to hasten FAA's approval of Airport Coronavirus Response Grant Relief concession relief grant payments?
A: FAA will use the existing U.S. Department of Transportation Delphi eInvoicing system for concession relief payment requests. FAA will review payment requests manually. Sponsors should identify: 
- ACDBE concessions;
- a one-on-one consultation date (see Q-CR-14);
- the date of consultation with remaining eligible concessions (see Q-CR-14);
- the base-line time period used to calculate proportional share (see Q-CR10);
- any consideration received in exchange for relief (see Q-CR12);
- date of airport concession certification (see Q-CR7);
- any concession that certified to taking a PPP second draw loan (see Q-CR7); and
- any special circumstances or adjustments made to the allocation (see Q-CR11).
A payment request should include the information identified above and the administration fee retained by the sponsor, not to exceed 2% of the allocation. A sample Airport Concessions Relief Plan is available.
Addressing Improper Concessionaire Relief Benefits. FAA updated one FAQ in the guidance document to address the situation where an airport sponsor becomes aware that a concessionaire is ineligible for relief and how to address any improper relief benefits that may have been provided. 
Q-CR7: Are there requirements for an airport concession to obtain rent or MAG relief from an airport sponsor?
A: Yes. An airport concession must certify to the airport sponsor that it has not received a second draw or assistance for a covered loan under section 7(a)(37) of the Small Business Act (15 U.S.C. 636(a)(37)) that has been applied toward rent or MAG. Additionally, an airport concession receiving relief from an airport sponsor may not apply for a covered loan under 15 U.S.C. 636(a)(37). Airport sponsors should collect these certifications and retain them for their records in the same manner that they retain invoices associated with its general Airport Coronavirus Response Grants. A sample Airport Concession Certification is available. 
If an airport sponsor becomes aware that a concession is ineligible for concessions relief under an Airport Coronavirus Response Grant, the airport sponsor is responsible for addressing any improper relief benefit. Federal funds may not be expended contrary to CRRSA requirements. The airport sponsor must notify the FAA at CARESAirports@faa.gov as soon as practicable after becoming aware of the improper relief benefit. It also must allocate an amount equal to the improper relief benefit among remaining eligible airport concessions in an amount that reflects each eligible airport concession's proportional share of the total amount of rent and MAG of all eligible airport concessions at the airport, and it must re-submit the information submitted for its payment request (see Q-CR15) showing the allocation correction. The airport sponsor also may require re-payment of the improper relief benefit.
Reimbursing Contract Tower Operation Expenses. FAA added one new FAQ to the guidance document that addresses whether airports need to submit separate payment requests for expenses related to FAA contract tower operations. 
Q-I4: Should airport sponsors submit separate payment requests for expenses related to FAA contract tower operations?
A: Yes. Separate payment requests should be submitted for FAA contract tower operations expenses to ensure these payments are processed against the correct funds. Additional information regarding FAA contract tower funding is provided in Q-CT2 and Q-CT3. 
 
 