The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of Partner Community Capital, Inc. & Subsidiary (PCAP) under programs of the federal government for the year ended December 31, 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 PCAP, it is not intended to and does not present the consolidated financial position, consolidated changes in net assets or consolidated cash flows of PCAP.
Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Negative amounts shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. Pass-through entity identifying numbers are presented where available.
PCAP did not elect to use the de minimis indirect cost rate as allowed under the Uniform Guidance.
The IRP provides loanable funds to small entities. An entity that receives an IRP loan from the Rural Business-Cooperative Service (RBS) is referred to as an intermediary. Intermediaries must relend all of the loan funds received from the IRP loan for business facilities or community development in rural areas. An entity that receives a loan from an intermediary is referred to as an ultimate recipient. The maximum loan to any one intermediary is $2 million. The maximum term is 30 years, and the interest rate is 1% per annum. Intermediaries may not use IRP funds to finance more than 75% of the cost of an ultimate recipient’s project or for a loan of more than $250,000 to one ultimate recipient. As of December 31, 2025, PCAP had seven loans payable outstanding under this program. The outstanding IRP loan payable balance was $2,573,258 at December 31, 2024. During the year ended December 31, 2025, PCAP made repayments of $135,734 on the loans. These loans are secured by pledged loan receivables of $2,216,511 and restricted cash of $1,885,599. The amount of $2,573,258 is included in federal expenditures under Federal ALN Number 10.767. As of December 31, 2025, the outstanding IRP loan payable $2,437,524.
The RMAP provides microloans to encourage the development of small businesses in rural areas. The maximum loan amount is $50,000. As of December 31, 2025, PCAP had one loan payable outstanding under this program. As of December 31, 2024, the outstanding RMAP loan payable balance was $350,775. During the year ended December 31, 2025, PCAP made repayments of $27,845 on the loan. This loan is secured by pledged loan receivables of $97,001 and restricted cash of $209,266. The amount of $350,775 is included in federal expenditures under Federal ALN Number 10.870. As of December 31, 2025, the outstanding RMAP loan payable $322,930.
The amount of Economic Adjustment Assistance presented on the Schedule of Expenditures of Federal Awards represents the balance of RLF loans receivable at the year end, cash balance in the RLF at year end, administrative expenses paid out of the RLF income during the year and cumulative paid in prior years, and the unpaid principial balance from written off RLF loans during the fiscal year and cumulative written off in prior years. A summary of the components of the RLF expenditures of federal awards follows:
The Federal Micro Loan Program provides microloans to encourage the development of small businesses. The maximum loan amount is $50,000. As of December 31, 2025, PCAP had one loan payable outstanding under this program. As of December 31, 2024, the outstanding Federal Micro Loan Program loan payable balance was $0. During the year ended December 31, 2025, PCAP made drawdown loan advances of $262,500 on the loan. This loan is secured by pledged loan receivables of $59,024 and restricted cash of $204,101. The amount of $262,500 is included in federal expenditures under Federal ALN Number 59.046. As of December 31, 2025, the outstanding Federal Micro Loan Program loan payable $262,500.