Reporting Requirements for Annual Financial Reports of State Agencies and Universities
Pass-Through Activity
Notes to SEFA
Note 9 – Economic Adjustment Assistance (ALN 11.307)
The objective of the U.S. Department of Commerce — Economic Development Administration’s (EDA) Economic Adjustment Assistance program is to address a wide range of needs of communities experiencing adverse economic changes that may occur suddenly or over time including, but not limited to, any of the following causes:
- Military base closures or realignments
- Depletion of natural resources
- Presidentially-declared disasters or emergencies
- International trade
Economic Adjustment Assistance awards may be used to:
- Develop, update or refine Comprehensive Economic Development Strategy (CEDS)
- Develop other strategy to alleviate long-term economic deterioration or a sudden and severe economic dislocation
- Fund a project implementing that CEDS or other strategy (including grants for construction and grants for Revolving Loan Funds [RLFs])
EDA grants to capitalize or recapitalize RLFs are most commonly used for business lending but may also fund public infrastructure or other authorized lending purposes if specifically allowed for in the terms and conditions of the recipient’s award.
According to Uniform Guidance, federal funds used to capitalize an RLF are not subject to the limitation on the period of availability of federal funds but continue to retain their federal character in perpetuity or until the grant is terminated. As such, required reporting and EDA oversight on the RLF also continue in perpetuity or until the grant is terminated.
Disclose the dollar value of funding related to RLF loans received under this program. For the purposes of calculating federal expenditures, RLF recipients are not permitted to factor in an allowance for bad debt.
Sample Disclosure Statement for SEFA Note 9: Economic Adjustment Assistance (ALN 11.307)
During the year ending Aug. 31, 20CY, Sample Agency was awarded two $500,000 Economic Adjustment Assistance grant awards from EDA to assist Texas counties that were affected by flooding. The purpose of the grant awards is to fund business loans for construction and related activities specifically for public infrastructure. EDA RLF Grant 1 (Grant Number xx.xxx) is to be matched 100% at the county level. EDA RLF Grant 2 (Grant Number xx.xxx) is to be matched 50% at the city level. The calculation for the federal awards expended is displayed in the tables below:
Total Grant Awarded
| Grant | Grant Amount | Matching | Total Grant Awarded |
|---|---|---|---|
| EDA RLF Grant 1 | 500,000.00 | 500,000.00 | 1,000,000.00 |
| EDA RLF Grant 2 | 500,000.00 | 250,000.00 | 750,000.00 |
| Totals | $1,000,000.00 | $750,000.00 | $1,750,000.00 |
Federal Share
| Grant Amount | $1,000,000.00 |
|---|---|
| Divided by: Total Grant Awarded | 1,750,000.00 |
| Federal Share | .57 |
Federal Awards Expended
| RLF loans outstanding at 08/31/CY | $2,000,000.00 |
|---|---|
| + Cash and investment balance in RLF at 08/31/CY | 225,000.00 |
| + Administrative expenses paid from RLF income during 08/31/CY | 50,000.00 |
| + Unpaid principal of all loans written off during CY | 0.00 |
| Total | $2,275,000.00 |
| x Federal Share of the RLF | .57 |
| = Federal Awards Expended | $1,296,750.00 |