The New York Times reported this week that Yellow Corporation, a freight shipping company previously known as YRC Worldwide, is heading toward bankruptcy. Worse yet, it received a $700 million loan from the federal government that it likely won't be able to pay back.
As both people and businesses struggled at the beginning of the COVID-19 pandemic, Congress apportioned trillions of dollars toward relief programs in bills like the Paycheck Protection Program (PPP) and the Coronavirus Aid, Relief, and Economic Security (CARES) Act. But while businesses applied for loans and people struggled to access unemployment benefits, the Treasury Department authorized a $700 million loan to YRC. In exchange, Treasury received a 29.6 percent share of the company "as appropriate taxpayer compensation."
