Title: E. Loans and Loan Programs
Accounting Policies: A. Reporting Entity - The accompanying schedule includes all federal award programs of the SMFA for the fiscal year ended June 30, 2024. The reporting entity is defined in the notes to the financial statements of the SMFA. B. Basis of Presentation - The information in the accompanying schedule of expenditures of federal awards is presented in accordance with the Uniform Guidance. 1. Pursuant to the Uniform Guidance, federal awards are defined as assistance provided by a federal agency, either directly or indirectly, in the form of grants, contracts, cooperative agreements, loans, loan guarantees, property, interest subsidies, insurance or direct appropriations. 2. Major Programs - The Uniform Guidance establishes the level of expenditures or expenses to be used in defining major federal award programs. Major programs for the SMFA are identified in the summary of auditor’s results in the schedule of findings and questioned costs. C. Basis of Accounting - The information presented in the schedule of expenditures of federal awards is presented on the accrual basis of accounting, which is consistent with the reporting in the SMFA’s financial statements.
De Minimis Rate Used: N
Rate Explanation: Indirect Cost Rate - The SMFA has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance.
Loans and Loan Programs - Included within the schedule of expenditures of federal awards, the SMFA has several outstanding federal loans and/or federal revolving loan programs as follows. We have considered these outstanding loan balances and related cash in determining programs to be tested under the Uniform Guidance.
Title: E. Loans and Loan Programs
Accounting Policies: A. Reporting Entity - The accompanying schedule includes all federal award programs of the SMFA for the fiscal year ended June 30, 2024. The reporting entity is defined in the notes to the financial statements of the SMFA. B. Basis of Presentation - The information in the accompanying schedule of expenditures of federal awards is presented in accordance with the Uniform Guidance. 1. Pursuant to the Uniform Guidance, federal awards are defined as assistance provided by a federal agency, either directly or indirectly, in the form of grants, contracts, cooperative agreements, loans, loan guarantees, property, interest subsidies, insurance or direct appropriations. 2. Major Programs - The Uniform Guidance establishes the level of expenditures or expenses to be used in defining major federal award programs. Major programs for the SMFA are identified in the summary of auditor’s results in the schedule of findings and questioned costs. C. Basis of Accounting - The information presented in the schedule of expenditures of federal awards is presented on the accrual basis of accounting, which is consistent with the reporting in the SMFA’s financial statements.
De Minimis Rate Used: N
Rate Explanation: Indirect Cost Rate - The SMFA has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance.
Revolving Loan Programs (Federal loan funds administered by the SMFA, loans made to ultimate recipients) Total loan receivables outstanding at June 30, 2024 - Intermediary Relending Program (IRP) 10.767: $638,059. Intermediary Lending Pilot Program (ILP) 59.062: $447,463.
Title: E. Loans and Loan Programs
Accounting Policies: A. Reporting Entity - The accompanying schedule includes all federal award programs of the SMFA for the fiscal year ended June 30, 2024. The reporting entity is defined in the notes to the financial statements of the SMFA. B. Basis of Presentation - The information in the accompanying schedule of expenditures of federal awards is presented in accordance with the Uniform Guidance. 1. Pursuant to the Uniform Guidance, federal awards are defined as assistance provided by a federal agency, either directly or indirectly, in the form of grants, contracts, cooperative agreements, loans, loan guarantees, property, interest subsidies, insurance or direct appropriations. 2. Major Programs - The Uniform Guidance establishes the level of expenditures or expenses to be used in defining major federal award programs. Major programs for the SMFA are identified in the summary of auditor’s results in the schedule of findings and questioned costs. C. Basis of Accounting - The information presented in the schedule of expenditures of federal awards is presented on the accrual basis of accounting, which is consistent with the reporting in the SMFA’s financial statements.
De Minimis Rate Used: N
Rate Explanation: Indirect Cost Rate - The SMFA has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance.
Outstanding loans (Federal loans made to the SMFA from a federal agency) Rural Development - Intermediary Relending Program 10.767 Promissory note to USDA, Rural Development, Intermediary Relending Program, $400,000 loan. Annual principal and interest payments of $16,980 with interest at an effective rate of 1.0%, matures in 2025, secured by notes receivable and property. $16,271
Title: E. Loans and Loan Programs
Accounting Policies: A. Reporting Entity - The accompanying schedule includes all federal award programs of the SMFA for the fiscal year ended June 30, 2024. The reporting entity is defined in the notes to the financial statements of the SMFA. B. Basis of Presentation - The information in the accompanying schedule of expenditures of federal awards is presented in accordance with the Uniform Guidance. 1. Pursuant to the Uniform Guidance, federal awards are defined as assistance provided by a federal agency, either directly or indirectly, in the form of grants, contracts, cooperative agreements, loans, loan guarantees, property, interest subsidies, insurance or direct appropriations. 2. Major Programs - The Uniform Guidance establishes the level of expenditures or expenses to be used in defining major federal award programs. Major programs for the SMFA are identified in the summary of auditor’s results in the schedule of findings and questioned costs. C. Basis of Accounting - The information presented in the schedule of expenditures of federal awards is presented on the accrual basis of accounting, which is consistent with the reporting in the SMFA’s financial statements.
De Minimis Rate Used: N
Rate Explanation: Indirect Cost Rate - The SMFA has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance.
Promissory note to USDA, Rural Development, Intermediary Relending Program, $568,123 loan. Annual principal and interest payments of $84,900 with interest at an effective rate of 1.0%, matures in 2025, secured by notes receivable and property. $161,582
Title: E. Loans and Loan Programs
Accounting Policies: A. Reporting Entity - The accompanying schedule includes all federal award programs of the SMFA for the fiscal year ended June 30, 2024. The reporting entity is defined in the notes to the financial statements of the SMFA. B. Basis of Presentation - The information in the accompanying schedule of expenditures of federal awards is presented in accordance with the Uniform Guidance. 1. Pursuant to the Uniform Guidance, federal awards are defined as assistance provided by a federal agency, either directly or indirectly, in the form of grants, contracts, cooperative agreements, loans, loan guarantees, property, interest subsidies, insurance or direct appropriations. 2. Major Programs - The Uniform Guidance establishes the level of expenditures or expenses to be used in defining major federal award programs. Major programs for the SMFA are identified in the summary of auditor’s results in the schedule of findings and questioned costs. C. Basis of Accounting - The information presented in the schedule of expenditures of federal awards is presented on the accrual basis of accounting, which is consistent with the reporting in the SMFA’s financial statements.
De Minimis Rate Used: N
Rate Explanation: Indirect Cost Rate - The SMFA has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance.
Total for ALN# 10.767 $177,853
Title: E. Loans and Loan Programs
Accounting Policies: A. Reporting Entity - The accompanying schedule includes all federal award programs of the SMFA for the fiscal year ended June 30, 2024. The reporting entity is defined in the notes to the financial statements of the SMFA. B. Basis of Presentation - The information in the accompanying schedule of expenditures of federal awards is presented in accordance with the Uniform Guidance. 1. Pursuant to the Uniform Guidance, federal awards are defined as assistance provided by a federal agency, either directly or indirectly, in the form of grants, contracts, cooperative agreements, loans, loan guarantees, property, interest subsidies, insurance or direct appropriations. 2. Major Programs - The Uniform Guidance establishes the level of expenditures or expenses to be used in defining major federal award programs. Major programs for the SMFA are identified in the summary of auditor’s results in the schedule of findings and questioned costs. C. Basis of Accounting - The information presented in the schedule of expenditures of federal awards is presented on the accrual basis of accounting, which is consistent with the reporting in the SMFA’s financial statements.
De Minimis Rate Used: N
Rate Explanation: Indirect Cost Rate - The SMFA has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance.
Small Business Administration - Intermediary Lending Pilot Program 59.062 U.S. Small Business Administration, Intermediary Lending Pilot Program, $1,000,000 loan. Interest accrues at an effective rate of 1.0%, with quarterly principal and interest payments of $15,420 to amortize outstanding balance and accrued interest over the remaining term. Loan matures in 2032; secured by notes receivable and property. $424,076
Title: E. Loans and Loan Programs
Accounting Policies: A. Reporting Entity - The accompanying schedule includes all federal award programs of the SMFA for the fiscal year ended June 30, 2024. The reporting entity is defined in the notes to the financial statements of the SMFA. B. Basis of Presentation - The information in the accompanying schedule of expenditures of federal awards is presented in accordance with the Uniform Guidance. 1. Pursuant to the Uniform Guidance, federal awards are defined as assistance provided by a federal agency, either directly or indirectly, in the form of grants, contracts, cooperative agreements, loans, loan guarantees, property, interest subsidies, insurance or direct appropriations. 2. Major Programs - The Uniform Guidance establishes the level of expenditures or expenses to be used in defining major federal award programs. Major programs for the SMFA are identified in the summary of auditor’s results in the schedule of findings and questioned costs. C. Basis of Accounting - The information presented in the schedule of expenditures of federal awards is presented on the accrual basis of accounting, which is consistent with the reporting in the SMFA’s financial statements.
De Minimis Rate Used: N
Rate Explanation: Indirect Cost Rate - The SMFA has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance.
Restricted cash and loan loss reserves - 59.062 $192,234
Title: E. Loans and Loan Programs
Accounting Policies: A. Reporting Entity - The accompanying schedule includes all federal award programs of the SMFA for the fiscal year ended June 30, 2024. The reporting entity is defined in the notes to the financial statements of the SMFA. B. Basis of Presentation - The information in the accompanying schedule of expenditures of federal awards is presented in accordance with the Uniform Guidance. 1. Pursuant to the Uniform Guidance, federal awards are defined as assistance provided by a federal agency, either directly or indirectly, in the form of grants, contracts, cooperative agreements, loans, loan guarantees, property, interest subsidies, insurance or direct appropriations. 2. Major Programs - The Uniform Guidance establishes the level of expenditures or expenses to be used in defining major federal award programs. Major programs for the SMFA are identified in the summary of auditor’s results in the schedule of findings and questioned costs. C. Basis of Accounting - The information presented in the schedule of expenditures of federal awards is presented on the accrual basis of accounting, which is consistent with the reporting in the SMFA’s financial statements.
De Minimis Rate Used: N
Rate Explanation: Indirect Cost Rate - The SMFA has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance.
Total for ALN# 59.062 $616,310
Title: E. Loans and Loan Programs
Accounting Policies: A. Reporting Entity - The accompanying schedule includes all federal award programs of the SMFA for the fiscal year ended June 30, 2024. The reporting entity is defined in the notes to the financial statements of the SMFA. B. Basis of Presentation - The information in the accompanying schedule of expenditures of federal awards is presented in accordance with the Uniform Guidance. 1. Pursuant to the Uniform Guidance, federal awards are defined as assistance provided by a federal agency, either directly or indirectly, in the form of grants, contracts, cooperative agreements, loans, loan guarantees, property, interest subsidies, insurance or direct appropriations. 2. Major Programs - The Uniform Guidance establishes the level of expenditures or expenses to be used in defining major federal award programs. Major programs for the SMFA are identified in the summary of auditor’s results in the schedule of findings and questioned costs. C. Basis of Accounting - The information presented in the schedule of expenditures of federal awards is presented on the accrual basis of accounting, which is consistent with the reporting in the SMFA’s financial statements.
De Minimis Rate Used: N
Rate Explanation: Indirect Cost Rate - The SMFA has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance.
Total outstanding loan programs $794,163