About this programme
The Startup Loan is the second tier of lending from the Latino Economic Development Center (LEDC), a nonprofit Community Development Financial Institution (CDFI) founded in 1991 that serves the DC, Maryland and Virginia region. LEDC's mission is to drive economic growth by equipping people with the skills and resources to build thriving businesses and achieve financial prosperity through homeownership.
It sits between LEDC's smaller, collateral-free SEED Loan for pre-launch and very new businesses, and its larger Growth Loan for established businesses seeking expansion capital. The Startup Loan is meant for businesses that have already launched but are still in their first two years of operating.
How it works
The loan carries a fixed APR as low as 6.5%, with a term of up to 60 months.
Collateral is required for the Startup Loan, unlike the smaller SEED Loan.
A 3% closing fee applies to the loan.
Who can apply
The business must be less than two years old.
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 business and personal tax returns.
Documents you’ll typically need
- Recent bank statements
- Business and personal tax returns
- IRS tax transcript (LEDC provides a video tutorial on requesting this)
Frequently asked
How much can I borrow through the Startup Loan?
Up to $20,000, at a fixed APR as low as 6.5%, over a term of up to 60 months.
Do I need collateral for a Startup Loan?
Yes. The Startup Loan requires collateral, unlike LEDC's smaller SEED Loan.
How old can my business be to qualify?
Less than two years old. Businesses under one year old, or not yet launched, should look at LEDC's SEED Loan instead.
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.
More funding in District of Columbia
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DC businesses buying their own commercial space can get a grant covering up to 25 percent of the price, capped at $500,000.
LEDC Growth Loan
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Established DC-area small businesses can borrow up to $250,000 to expand, at a fixed rate starting around 6.5 percent.
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Very early DC founders, including pre-launch ones, can get a small loan of up to $5,000 to get started.
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Small retail and service businesses on one of DC's designated Great Streets corridors can apply each year for a storefront renovation grant.
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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.