Micro-loan Program As a certified Community Development Financial Institution, LEDC provides micro-loans of up to $50,000 to start-ups and existing businesses that have difficulty obtaining credit from mainstream financial institutions. LEDC has provided millions of dollars in start-up capital to ventures who do not have access to commercial bank loans, venture capitalists, and other sources of formal financial backing. LEDC is committed to helping business owners improve their consumer credit score, assess the financial health of their businesses, and get connected to the financial tools they need to develop their business. | Are you looking money for working capital, equipment, capital improvements? Learn more about how LEDC can help you finance your small business. |  | | Do you have a credit history? The easiest way to access financing is by building a positive repayment history. Get started with Credi-start |  | | Who are we lending to? How many clients are in our portfolio? How much have we lent? How risky are our loans? Take a look at figures from our current portfolio. | |
If you are a small business owner looking to start, expand or improve your business, consider an LEDC loan. In DC or Virginia call 202-588-5102 and ask to speak with a loan officer. In Maryland contact Alba Bautista at 240-777-4960. To learn more about the terms, conditions, or to start your application see our Frequently Asked Questions or contact an LEDC loan officer today. Frequently Asked Questions What documents are needed to apply for a loan?
Depending on the size of the loan and the applicant’s credit score, documents are required such as:
- Two years of personal and/or business tax returns,
- Copy of applicable business licenses and permits
- Financial statements (if available)
- Three months of bank statements, personal and business
- Lease agreement (if applicable)
- Proof of identification Are there any fees?
Yes. There is one fee that is 3% of the loan amount for closed loans. For example, a $6,000 loan would have a fee of $180, which would be paid at the time of closing. There is NO application fee! What are the terms and interest rate of LEDC’s loans?
LEDC offers installment loans and has the flexibility to set the term on all loans between 1 and 5 years based on the applicant’s needs. Interest rates typically range from 9 to 14 percent. How long will the application process take?
Loans up to $10,000 are typically approved or denied in approximately one week after all the application documents are received. Loans up to $50,000 typically take three weeks after all the application documents are received. What factors does LEDC look at to determine whether or not a loan is approved?
As a non-profit loan fund, LEDC takes a holistic approach to evaluating potential loan clients. LEDC weighs several factors, such as strength of business, character references, availability of collateral, owner equity contribution, credit score, etc. Are there any types of businesses that cannot apply for a loan?
Yes. Any business engaged in illegal activities or the sale of sexual-oriented goods or services, liquor stores, real estate and speculative investments are ineligible for LEDC loans. Contact an LEDC loan officer for more information. Are there any negative credit factors that make an applicant ineligible?
Yes. If an applicant owes back taxes to a State or the IRS or has not paid any court judgments or outstanding child support, he or she will not qualify for a loan. Contact an LEDC loan officer for more information. For what purposes can LEDC loans be used?
LEDC loans are term loans that can be used for working capital, equipment, inventory, advertising and marketing, etc. Contact an LEDC loan officer for more information. Is there a minimum credit score necessary to apply for a micro-loan?
No. LEDC has been able to work with business owners with credit scores as low as 550. Can a start-up business apply for a loan?
Absolutely. That's what we're here for.
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