The accompanying schedule of expenditures of federal awards (the “Schedule”) includes the federal award activity of Justine Petersen Housing and Reinvestment Corporation (the “Corporation”) 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 the Corporation, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the Corporation.
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.
The Corporation was granted an indirect cost rate of 36.3% with the SBA. The Corporation has elected not to use the de minimis indirect cost rate allowed under the Uniform Guidance, preferring to use the approved rate of 36.3% for federal programs with the SBA. For other federal programs, the Corporation has elected to use the de minimis indirect cost rate allowed under the Uniform Guidance.
a)The Corporation had activity related to eight notes payable with the U.S. Small Business Association (“SBA”) in connection with the SBA Microloan Program (ALN 59.046) as of December 31, 2025. This federal loan program is administered directly by the Corporation, and balances and transactions relating to this program are included in the Corporation’s consolidated financial statements. The notes are payable in various monthly installments and interest rates range from 0% to 4.375%. The loans are due at various dates through June 2034 and secured by notes receivable. The total SBA loan awards included in the Schedule of Expenditures of Federal Awards include loans outstanding at the beginning of the period, plus new loans issued during the period. SBA ending loan balances outstanding as of December 31, 2025, total $5,231,859. b) The Corporation had activity related to three notes payable with the U.S. Department of Agriculture (“USDA”) in connection with the Intermediary Relending Program (ALN 10.767). This federal loan program is administered directly by the Corporation, and balances and transactions relating to this program are included in the Corporation’s consolidated financial statements. Monthly interest payments are required, with an interest rate of 1%, until maturity in October 2043, October 2045, and October 2052. The total USDA loan balances are secured by notes receivable. Total USDA loan awards included in the Schedule of Expenditures of Federal Awards include loans outstanding at the beginning of the period plus new loans issued during the period. USDA ending loan balances outstanding as of December 31, 2025, total $1,917,846. c) The Corporation had activity with the U.S. Department of Treasury in connection with the Community Development Financial Institutions Fund Grant (ALN 21.020). This federal loan program is administered directly by the Corporation, and the balances and transactions relating to this program are included in the Corporation’s consolidated financial statements. Loans outstanding at the beginning of the year and loans made during the year are included in the federal expenditures presented in the Schedule. US. Department of Treasury loan balances outstanding as of December 31, 2025, total $0.
The Corporation’s expenses for the year ended December 31, 2025, were allocated between federal and non-federal sources as follows: Federal expenditures including loan balances: $18,313,158; Less SBA intermediary lender loans: $8,370,834; Less USDA intermediary relending program: $3,218,325; Less CDFI Grant: $2,735,000; Federal expenditures excluding loan balances: $3,988,999; Non-federal expenditures: $13,191,022; Total expenditures: $17,180,021.
Federal Expenditures by Subsidiaries included in the Schedule of Expenditures of Federal Awards: a) IgniteMO Loan Participation Program, LLC (“IgniteMO”), a wholly-owned subsidiary of Justine Petersen Housing and Reinvestment Corporation, was the recipient of SSBCI funding. IgniteMO’s EIN is 99-4855822 and UEI is ZX8EE8M3P3W5. b) Sanctuary in the Ordinary (SITO), a wholly-owned subsidiary of Justine Petersen Housing and Reinvestment Corporation, was the recipient of Coronavirus State and Local Fiscal recovery Fund funding. SITO’s EIN is 43-1622145 and UEI is KQTZEXWLR7K9.