Notes to SEFA
5. Loans and Loan Guarantees Outstanding In accordance with the Uniform Guidance, §200.502 Basis for determining Federal awards expended, since the federal government is at risk for loans and loan guarantees awarded until the debt is repaid, the amount to be presented as expenditures of federal awards for loans and loan guarantees awarded, including those awarded and expended in prior years that have continuing compliance requirements, is: (1) Value of new loans or loan guarantees made or received during the audit period; plus (2) Beginning of the audit period balance of loans and loan guarantees from previous years for which the federal government imposes continuing compliance requirements; plus (3) Any interest subsidy, cash, or administrative cost allowance received. Accordingly, North Edge has reported loans and loan guarantees awarded in accordance with the aforementioned criteria. Amounts presented as expenditures of federal awards for loan and loan guarantee programs by federal CFDA number are as follows: 10.767 10.870 59.012 59.046 Value of new loans made $ - $ - $ - $ 100,000 Value of new loan guarantees made - - 145,500 - Loan balance, beginning of the year 2,988,744 352,532 - 386,815 Total expenditures of federal awards presented for loan and loan guarantee programs 2,988,744 352,532 145,500 486,815 Balance of loans and loan guarantees at June 30, 2025 $2,808,503 $ 333,555 $ - $ 421,609 During the year ended June 30, 2025, North Edge issued 1 loan with a face value $194,000 under the U.S. Small Business Administration Community Advantage Pilot 7(a) Loan Guarantee Program (SBA CAP). Loan guarantees were provided under the SBA CAP for either 75% or 85% of the original loan balance, or $145,500. 6. Basis for Determining Expenditures of Federal Awards for the Economic Adjustment Assistance Program, Federal CFDA 11.307 The Office of Management and Budget (OMB) Compliance Supplement formula to determine the amount to be presented on the schedule of expenditures of federal awards for revolving loan fund (RLF) grants under federal CFDA 11.307. The formula to determine expenditures to be reported in the Schedule is as follows: (1) The balance of RLF loans outstanding at the end of the recipient's fiscal year, plus; (2) The cash and investment balance in the RLF at the end of the fiscal year, plus; (3) Administrative expenses paid out of the RLF during the year, plus; (4) The unpaid principal of all loans written off during the year; and then multiply this sum by; (5) The federal share of the RLF based on the federal grant rate as specified in the grant award. Accordingly, North Edge has reported expenditures of federal awards for its Economic Adjustment Assistance funded RLF program as follows: Balance of RLF loans outstanding at June 30, 2025 $ 456,478 Cash balance in RLF at June 30, 2025 235,279 Administrative expenses paid out of the RLF during the year - Unpaid principal of all RLF loans written off during the year - Total RLF expenditures for year ending June 30, 2025 (100% federal) $ 691,757