The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of Community Investment Corporation (CIC) under programs of the federal government for the year ended September 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 CIC, it is not intended to and does not present the financial position, results of operations, and change in net assets, or cash flows of CIC.
Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained within the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. For performance-based awards, expenditures reported represent amounts earned.
CIC has not elected to use the 15 percent de minimus indirect cost rate allowed under the Uniform Guidance. CIC allocates expenses based on a historical evaluation of time and effort. For the fiscal year ended September 30, 2025 and 2024, 65% of total expenses were allocated to program services, reflecting the CIC’s commitment to its mission-driven activities. The remaining 35%, as evidenced in CIC’s indirect cost rate proposal and approved by the SBA, was allocated to supporting services. Those expenses include personnel costs, office expenses, professional fees, and other expenses.
EDA Cares RLF Balance of RLF loans outstanding at September 30, 2025 $2,831,731 Cash balance in the RLF at September 30, 2025 113,215 Administrative expenses paid out of RLF income during the year ended September 30, 2025 120,869 Unpaid principal of all loans written off during the year ended September 30, 2025 3,065,815 The Federal share of the RLF 100% Total Expenditures Reported on the Schedule of Expenditures of Federal Awards $3,065,815
All loan programs are administered by CIC. The amounts reflected on the Schedule reports the outstanding balance of loans receivable as of September 30, 2024 plus new loans originated during the year ended September 30, 2025 or in the case of the economic development cluster, federal expenditure calculation for the year ended September 30, 2025 (see Note 4). The balance of loans receivable at September 30, 2025 follows: Federal Grantor/Pass-Through Grantor/ Program Title Assistance Listing Number Loans Receivable Balance Small Business Administration Microloan Program 59.046 $ 1,154,047 7(a) Loan Guarantees 59.012 4,943,149 Total Small Business Administration 6,097,196 Department of Commerce Economic Development Cluster Economic Adjustment Assistance: EDA CARES RLF 11.307 2,831,731 Total Department of Commerce 2,831,731 Total Loans Receivable $ 8,928,927
CIC participates in the 7(a) program as a Community Advantage Small Business Lending Company (CA SBLC). Under the provisions of 7(a) Program, the SBA guarantees 85% of loans up to $150,000 and 75% of loans from $150,001 to $350,000. The remaining portion of the loans are unguaranteed. For reporting on the Schedule, expenditures and the outstanding balance of the 7(a) Loan Guarantees program are presented net of the unguaranteed portion. On December 27, 2020, the Economic Aid to Hard-Hit Small Businesses, Nonprofits, and Venues Act (Economic Aid Act) was signed into law which increased SBA guarantees to 90% through September 30, 2021. On October 1, 2021, the guaranty percentages automatically reverted to previous levels. Beginning Balance - 7(a) Loan Guaranteed Portion at Octover 1, 2024 $5,821,782 Add: 7(a) Guaranteed Portion of New Loans Issued 192,500 Total Ependitues Reported on the Schedule of Expenditures of Federal Awards $6,014,282 Following is a reconciliation of the guaranteed and the unguaranteed portions of the 7(a) Program as of September 30, 2025: Outstanding Loan Balance - 7(a) Loan Guaranteed Portion at September 30, 2025 $4,943,149 Add: 7(a) Loan Unguaranteed Portion 1,183,980 Total Outstanding Loan Balance under the 7(a) Program $6,127,129
On July 27, 2020, CIC was approved by the EDA for a $3,150,000 revolving loan fund to alleviate sudden and severe economic dislocation caused by the novel coronavirus (COVID-19) pandemic. In addition, the EDA provided CIC with up to $315,000 to defray the cost of administering loans under this new program. The total project cost is estimated to be $3,465,000 and is funded under additional Supplemental Appropriations for Coronavirus Aid, Relief, and Economic Security Act (CARES Act). Federal expenditures related to this loan program are reported on the schedule of expenditures of federal awards under the program title EDA CARES RLF.
As of September 30, 2025, CIC owed the SBA under separate borrowings as follows: SBA Loan SBA Loan SBA Loan SBA Loan Number Number Number Number 2749167008 4396557010 5157549105 Total Issue Date 7/10/2018 4/3/2020 6/28/2023 Interest Rate 1.50% 0.00% 2.25% Original Amount $ 950,000 $ 1,000,000 $ 1,000,000 Balance - Beginning of Year $449,625 $ 503,704 $742,738- $ 1697,067 Loan proceeds -- 250,000 Loan repayments (107,638) (88,889) (83,522) (280,049) Balance - End of Year $ 341,987 $ 414,815$ 909,216 $ 1,666,018