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YRC Worldwide (YRCW), a Kansas-based commercial trucker, secured a $700 million loan from the U.S. Treasury Department, in exchange for a 29.6% equity stake.

Why it matters: This is by far the largest stimulus loan for any non-airline company, and the first from a $17 billion allocation for companies deemed critical to national security. The loan is also controversial, given that YRC was struggling long before the pandemic.

The bottom line: "YRC is a large company with a tiny stock. It has 30,000 employees and 200,000 customers, but its market capitalization is less than $70 million as of Tuesday’s closing price." — Al Root, Barron's

Kansas trucker secures largest non-airline stimulus loan from Treasury

It's $700 million in exchange for a 29.6% equity stake in YRC Worldwide.

An illustration of a truck being tied down.

Business

Treasury Department

YRC Worldwide (YRCW), a Kansas-based commercial trucker, secured a $700 million loan from the U.S. Treasury Department, in exchange for a 29.6% equity stake.Why it matters: This is by far the largest stimulus loan for any non-airline company, and the first from a $17 billion allocation for companies deemed critical to national security. The loan is also controversial, given that YRC was struggling long before the pandemic.

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Economy

After a record economic expansion, the coronavirus pandemic sent the U.S. economy into a recession as unemployment soared to staggering heights. The country now faces urgent questions about how much stimulus is needed for reeling consumers and businesses, and what a recovery might look like.

Kansas trucker secures largest non-airline stimulus loan from Treasury

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