The accompanying Schedule of Expenditures of Federal, State and City Awards (the “SEFA”) include the grant activity of Philadelphia Industrial Development Corporation and Affiliated Entities (the Corporation) for the year ended December 31, 2024. The information in the Schedule of Expenditures of Federal, State and City Awards 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), and the City of Philadelphia Subrecipient Audit Guide. Therefore, some amounts presented in this schedule may differ from amounts presented in or used in the preparation of the basic combined financial statements. In addition, because the Schedule of Expenditures of Federal, State and City Awards presents only a selected portion of the operations of the Corporation, it is not intended to and does not present the combined financial position, changes in net assets, or cash flows of the Corporation. The programs, as discussed below, represent the significant funding sources used in sustaining the mission and primary activities of the Corporation. All of the Corporation’s federal awards were in the form of cash assistance for the year ended December 31, 2024.
The accompanying Cumulative Schedules of Source and Status of Funds, Schedules of Program Costs and Cumulative Schedules of Miscellaneous Revenue are presented in accordance with the requirements of grant agreements with the City of Philadelphia (City) and the City of Philadelphia Subrecipient Audit Guide. Expenditures reported on the Schedule of Expenditures of Federal, State and City Awards are reported on the accrual basis of accounting. Such expenditures are recognized following, as applicable, either the cost principles in Uniform Guidance, and the City of Philadelphia Subrecipient Audit Guide, wherein certain types of expenditures are not allowable or are limited as to reimbursement. The Corporation has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance.
The Corporation, under contract with the City, is engaged in selected economic development programs that are funded by the City through Community Development Block Grant (CDBG) Funds provided by the U.S. Department of Housing and Urban Development (HUD). The Corporation enters into annual contracts with the City with respect to administration of the program funds. The goals of these programs are the creation and retention of permanent jobs for very low and low to moderate income residents of the City, the stimulation of investment in economic activity in the City, and the generation of tax ratables throughout the City. The funds are used for limited direct loans and grants, which will make conventional private financing feasible for the bulk of an improvement project. Such loans and grants are used for the acquisition, site preparation, construction, reconstruction and rehabilitation of industrial and commercial property, machinery and equipment, and related site improvements. The Corporation reports/calculates SEFA loan expenditures as per 2 CFR § 200.502 (d) as there are no continuing compliance requirements. At December 31, 2024, the Corporation held $13,076,190 in CDBG loans receivable, net of an allowance for doubtful accounts of $2,286,107. At December 31, 2024, the Corporation held $11,939,517 in HUD Section 108 loans receivable, net of an allowance for doubtful accounts of $16,142,410. At December 31, 2024, the Corporation held $2,860,958 of Greenwork Program-Energy Efficiency and Conservation Block Grant loans receivable, net an allowance for doubtful accounts of $1,946,563.
1. Economic Adjustment Sudden and Severe Economic Dislocation Implementation Grants & Revolved Loan Fund -The original purpose of these grants received under CFDA #11.307 was to assist with an economic adjustment strategy to address actual and anticipated defense-related economic adjustment dislocations and other adjustment problems in the City, known as the Defense Conversion Fund. In 1995, the Corporation was awarded $2,700,000 in grant funds. Of this amount, $1,100,000 was to fund a technology assessment and reuse assessment of the Philadelphia Naval Shipyard and a reuse assessment of the Philadelphia Naval Hospital, and the remaining $1,600,000 was used to establish a revolving loan fund. Also, there was an additional $750,000 of local match funds contributed to the revolving loan fund. Additionally, proceeds were also to be used to establish a revolving loan fund for businesses in the American Street Project area and businesses that had difficulty accessing the private capital necessary to maintain operations and/or expand their businesses throughout the City. During 2019, the EDA approved an updated Revolving Loan Fund Plan, whereby the revolved loan funds can be used for financing senior & subordinate term loans, lines of credit, small businesses, non-profits, and developers throughout the city of Philadelphia. At December 31, 2024, the Corporation held $11,894,663 in loans receivable, net of an allowance for doubtful accounts of $1,350,000. 2. EDA -Coronavirus Aid, Relief and Economic Security (CARES) ACT-The purpose of this grant award received under CFDA #11.307 is to capitalize a revolving loan fund to alleviate sudden and severe economic dislocation caused by the COVID-19 pandemic, to provide permanent resources to support economic resiliency, and to further the long-term economic adjustment objective of the Greater Philadelphia region. On July 28, 2020, PAID, a related party of the Corporation, was awarded $7,458,000 in grant funds, from the EDA, funded under the additional Supplemental Appropriations for CARES Act. During 2021, PAID entered into a sub-grant agreement with PIDC CC under the terms and conditions of the original grant. Additionally, under the terms of the sub-grant agreement $1,030,000 of loans that were funded by PAID, in 2020, were granted to PIDC CC in 2021. Of the awarded amount, $6,780,000 is to be used to capitalize a revolving loan fund and $678,000 is to be used to defray the cost of administering the revolving loan fund (administration costs).At December 31, 2024, the Corporation held $5,037,730 in loans receivable, net of an allowance for doubtful accounts of $11,045. The Corporation’s total administration costs at December 31, 2024 were $0.
1. CDFI Financial Assistance Program -The purpose of grants received under ALN #21.020 is to aide to promote economic revitalization and community development. During 2020, CDFI Awards were used/disbursed for Business Supportive Services and Lending Capital for loans to businesses or developers.At December 31, 2024, the Corporation held $3,123,179 in CDFI loans receivable related to ALN #21.020, net of an allowance for doubtful accounts of $20,000. 2. CDFI Equitable Recovery Program - The purpose of grants received under ALN #21.033 is to promote economic revitalization and community development through the CDFI’s Equitable Recovery Program. During 2023, the Corporation was awarded $6,197,098 to fund loans and grants to low-or moderate- income communities and borrowers, including minorities, that have significant unmet capital or financial service needs, and were disproportionately impacted by the COVID-19 pandemic.Of the awarded amount, $5,797,098 is to be used to fund loans and grants and $400,000 is to be used to defray the cost of administering the program (administration costs). At December 31, 2024, the Corporation disbursed a total of $1,794,241 to borrowers for loans and $52,602 to grantees for grants. Also, the Corporation disbursed $400,000 for administration costs. At December 31, 2024, the Corporation held $1,794,241 in CDFI loans receivable related to ALN #21.033, net of an allowance for doubtful accounts of $0.
The purpose of this grant award received under ALN #21.027 is to respond to the public health emergency with respect to COVID-19 or its negative economic impacts, including assistance to businesses, and nonprofits and aid to impacted industries, such as tourism, travel, and hospitality. During 2020, the Corporation was awarded $4,000,000 to fund grants to the City of Philadelphia, Department of Commerce, Division of Aviation, to aide in the COVID-19 Air Service Recovery and Incentive Program, which provides incentives to initiate new air service to PHL has it had experienced a significant drop in air travel due to the pandemic. At December 31, 2024, the Corporation fully disbursed grant proceeds of $4,000,000 to grantee.
The purpose of this grant award received under ALN #17.289 is for the expansion of the West Philadelphia Skills Initiative and PIDC’s Navy Yard Skills Initiative, both cohort-based, employer-driven training models developed in partnership with universities, health systems and other major employers. During 2024, the Corporation was awarded $525,000 to fund grantees for services provided for skill-based initiative services and administrative costs. At December 31, 2024 and December 31, 2023, the Corporation disbursed a total of $289,351 and $57,321, respectively, to grantees and administrative personnel costs.
The Corporation does not provide any funds from federal programs to any sub-recipients; therefore, there are no sub-recipient amounts reported on the SEFA.