Notes to SEFA
Title: Note 1 - Basis of Presentation
Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement.
De Minimis Rate Used: N
Rate Explanation: The Organization has not elected to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance.
The accompanying schedule of expenditures of federal awards (the "schedule") includes the federal
award activity of CDC Small Business Finance Corp. ("CDC") under programs of the federal government
for the year ended December 31, 2023. The information is presented in accordance with the requirements
of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards ("Uniform Guidance"). Because the Schedule
presents only a selected portion of the operations of CDC, it is not intended to and does not present the
financial position, changes in net assets or cash flows of CDC.
Title: Note 4 - Microloan Program
Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement.
De Minimis Rate Used: N
Rate Explanation: The Organization has not elected to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance.
The Microloan Program represents a program under which CDC periodically applies for and receives
loan proceeds from the Small Business Administration ("SBA") (revolving loan pools) that are used to
make microloans to eligible micro-borrowers. These microloans are made in accordance with guidance
set forth by the SBA under its Standard Operating Procedures ("SOP") and require CDC to meet
continuing compliance and reporting requirements. In addition, each fiscal year, CDC applies for and
receives approval for grant funding to be paid on a reimbursement basis for specific technical assistance related
expenses incurred by CDC with respect to the Microloan Program. CDC received new funding of
$2,000,000 during the year.
Title: Note 5 - Outstanding loan balances under federal programs
Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement.
De Minimis Rate Used: N
Rate Explanation: The Organization has not elected to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance.
CDC has received loan funding under federal programs as noted below. Loans outstanding at the beginning of the year and loans made during the year are included in the federal expenditures presented in the Schedule. The balance of the loans outstanding at December 31, 2023 consist of: Outstanding
Assistance Identifying balance at
Program name listing number number December 31, 2023
Microloan Program
Microloan Program • Loan Program 59.046 8556855001 $ 225,723
Microloan Program • Loan Program 59.046 2443337008 390,247
Microloan Program • Loan Program 59.046 3640117005 621,539
Microloan Program • Loan Program 59.046 7061447003 1,674,126
Microloan Program • Loan Program 59.046 4262109110 2,000,000
Total Microloan Program 4,911,635
$ 4,911,635