Notes to SEFA
Title: SMALL BUSINESS ADMINISTRATION 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. For performance-based awards, expenditures reported represent amounts earned.
De Minimis Rate Used: Y
Rate Explanation: HEDCO has elected to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance.
HEDCO participates in the Small Business Administrations ("SBA") Microloan Program for small businesses. HEDCO borrows funds from the SBA for the purpose of making loans to eligible businesses within the State of Connecticut. The loans are limited to a maximum amount of $50,000 per loan and require the borrower to repay HEDCO on a monthly basis at interest rates set at the time of closing. As of May 31, 2022, HEDCO owed the SBA $394,547 under three separate borrowings: SBA Loan Number 4789295002 - Issue Date: 11/1/2011, Interest Rate: 1.63%, Original Amount: $500,000, Balance - Beginning of Year - $15,347,Loan repayments - (15,347), Balance - End of Year - $0. SBA Loan Number 6342285002- Issue Date: 11/4/2014, Interest Rate: 0.00%, Original Amount: $300,000, Balance - Beginning of Year - $86,538, Loan repayments - (34,615), Balance - End of Year - $51,923. SBA Loan Number 2838787008- Issue Date: 8/10/2019, Interest Rate: 1.63%, Original Amount: $450,000,Balance - Beginning of Year - $390,931, Loan repayments - (48,307), Balance - End of Year - $342,624. Total Balance - Beginning of Year - $492,816, Total Loan repayments - (98,269), Total Balance - End of Year - $394,547.