Notes to SEFA
The U.S. Department of Education has awarded total grants of $53,462,977 to the Organization to credit enhance the loans made by financial institutions to stimulate the financing of charter schools. The grant funds are to remain invested in separate grant reserve accounts in accordance with the requirements of the grant. Such financial assistance is considered federal awards expended based on the amounts in the reserve accounts at the beginning of the grantee fiscal year; plus any new funds received; plus investment earnings received in the grantee's fiscal year to add to the reserve account; less any application of the grants resulting from the credit enhancements provided. Cumulative application of grant funds to cover credit enhancement losses from program inception to December 31, 2025 were $580,731. The reserve account balance as of December 31, 2025 is $63,623,179 consisting of the grant balance of $52,498,350 and accumulated net investment earnings of $11,124,829 of which $1,507,728 was earned in 2025.
The U.S. Department of Treasury has awarded a total of $20,000,000 to the Organization to support Affordable Housing Activities, Economic Development Activities, or Community Service Facilities in the following manners: to provide loan loss reserves, to capitalize a revolving loan fund, for risk sharing loans, for loan guarantees, and for the awardee's operations. The balance of loans outstanding that have continuing compliance under the Capital Magnet Fund (Assistance Listing No. 21.011) at December 31, 2025 is $13,111,637. During the year ended December 31, 2025, there was an additional $67,366 expended in administrative costs for the Capital Magnet Fund program for total program expenditures of $13,179,003.
The loan program listed subsequently is administered directly by the Organization, and the balance and transactions related to this program is included in the Organization's consolidating and consolidated financial statements. Loans outstanding at the beginning of the year and loan proceeds received during the year are included in the federal expenditures presented in the Schedule. The balance of loans outstanding at December 31, 2025, consists of: