The accompanying schedule of expenditures of federal and state awards (the “Schedule”) includes the federal and state grant activity of Carolina Small Business Development Fund (the “Organization”) for the year ended June 30, 2025. The information in the Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations (CFR) 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 the Organization, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the Organization.
Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, and U.S. Department of the Treasury's guidance and FAQs published in the Federal Register, as applicable, wherein certain types of expenditures are not allowable or are limited as to reimbursement.
The following federal loan programs are administered by the Organization, with balances and transactions relating to these programs included in the Organization's basic financial statements. Loans outstanding at the beginning of the fiscal year and loans taken during the fiscal year are included in the federal expenditures presented in the Schedule. The balance of loans due to the federal agencies at June 30, 2025, consists of: Assistance Listing #: 10.767, 10.870, 59.062 Program Name: USDA IRP, USDA RMAP, US SBA ILP Outstanding Balance June 30, 2025: $1,239,253, $624,255, $ 371,677. Loans receivable from borrowers of approximately $9,923,264 at June 30, 2025, are guaranteed (up to 75% or 85%) under the SBA Community Advantage Pilot Loan Program. Loans receivable from borrowers of approximately $1,072,537 at June 30, 2025, are guaranteed (up to 7%) under the NC Capital Access Program. Loans receivable from borrowers of approximately $143,203 at June 30, 2025, are guaranteed under the National Association for Latino Community Asset Builders (NALCAB) Guarantee program.
The Organization elected to charge indirect costs as provided by the Organization's grant agreements, instead of using the 10% de Minimis indirect cost rate allowed by the Uniform Guidance.