Notes to SEFA
The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of Southeast Kentucky Economic Development Corporation, Inc. under programs of the federal government for the year ended June 30, 2025. The information in this Schedule 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 Southeast Kentucky Economic Development Corporation, Inc., it is not intended to and does not present the financial position, changes in net assets, or cash flows of Southeast Kentucky Economic Development Corporation, Inc.
Southeast Kentucky Economic Development Corporation, Inc. has balances outstanding on federally funded loan programs. Included in the Schedule is Intermediary Relending Program with loans outstanding of $2,496,255 and Community Development Financial Institutions Fund with a loan outstanding of $516,530 at June 30, 2025.
As part of the SBA CA program, a minimum of 5% of the unguaranteed portion of the CA Lender’s CA loan portfolio must be deposited in Loan Loss Reserve Account no later than 45 calendar days after the date of each CA loan disbursement. Southeast Kentucky Economic Development Corporation, Inc. is in compliance with this requirement. Also, a minimum of 3% of the guaranteed portion of each CA loan that is sold into the secondary market must be deposited in Loan Loss Reserve Account no later than 10 calendar days after the CA loan has been sold into the secondary market. This requirement does not apply to Southeast Kentucky Economic Development Corporation, Inc. as they do not sell loans in the secondary market.
Expenditures presented on the Schedule for Economic Adjustment Assistance Program are calculated as follows: Balance of RLF Principal Outstanding on Loans $726,871 Cash and Investment balance in the RLF 468,387 Administrative Expenses paid using RLF Income 15,192 Administrative Expense due to General Fund (4,909) 1,205,541 Multiply by Federal Percentage (Per Original Award) 100.00% Expenditures $1,205,541