About this programme
The SEED Loan is the smallest and earliest-stage loan product offered by the Latino Economic Development Center (LEDC), a nonprofit Community Development Financial Institution (CDFI) founded in 1991. LEDC's mission is to drive economic growth across the DC, Maryland and Virginia region by giving people the skills and resources to build thriving businesses and achieve financial prosperity through homeownership.
SEED is built for the newest businesses in LEDC's portfolio: companies under one year old, or founders who plan to launch within the next three months. It sits below LEDC's Startup Loan and Growth Loan in size, and is meant to cover the first costs of getting a business off the ground rather than expansion capital.
LEDC positions all of its lending as an alternative to conventional bank financing, built around a fast application process, no hidden fees, and free business advice alongside the loan itself.
How it works
The loan carries a fixed APR as low as 6.5%, with a term of up to 36 months.
No collateral is required for the SEED Loan, unlike LEDC's larger Startup and Growth loans which do require collateral.
A 1% closing fee applies to the loan.
Who can apply
The business must be under one year old, or the founder must be planning to launch within three months of applying.
LEDC lends to businesses in the District of Columbia, Maryland and Virginia, and operates offices in DC, White Oak/Silver Spring and Baltimore in Maryland, and Arlington in Virginia.
How to apply
- Apply online through LEDC's application form, linked from the main lending page.
- Provide recent bank statements. LEDC provides a guide for downloading bank statements.
- Provide personal tax returns (the SEED Loan does not require business tax returns, since most applicants are pre-launch or under a year old).
Documents you’ll typically need
- Recent personal bank statements
- Personal tax returns
- IRS tax transcript (LEDC provides a video tutorial on requesting this)
Frequently asked
How much can I borrow through the SEED Loan?
Up to $5,000, at a fixed APR as low as 6.5%, over a term of up to 36 months.
Do I need collateral to get a SEED Loan?
No. Unlike LEDC's Startup Loan and Growth Loan, the SEED Loan does not require collateral.
Can I apply if my business hasn't launched yet?
Yes. The SEED Loan is open to founders planning to launch within three months, as well as businesses already operating but under one year old.
What can the loan money be used for?
LEDC lists common uses across its loan products as vehicles, equipment, working capital, inventory, renovations and bridge financing.
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Reviewed 2026-09-25. Programmes change, so check eligibility, amounts and deadlines on the official page before you apply. CapEasy is a private firm and is not part of any government body.