Jul 2, 2020 - Economy

Kansas trucker secures largest non-airline stimulus loan from Treasury

An illustration of a truck being tied down.

Illustration: Aïda Amer/Axios

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

Go deeper