Partner Description:

Latino Economic Development Center (LEDC) is a community-based nonprofit that equips Latinos and other DC-area residents with the skills and financial tools to create a better future for their families and communities. Participants in our programs learn how to buy and stay in their homes, join with their neighbors to keep their rental housing affordable, and start or expand small businesses.

LEDC activities are diverse, include providing technical assistance and a variety of business trainings on topics ranging from recordkeeping and 
paying taxes to building websites and marketing; providing business loans between $5,000 and $50,000 to qualified start-ups and existing small businesses; housing counseling for families to buy their first home and save their homes from foreclosure; and tenant organizing to help residents keep their rental housing affordable. By operating in the larger metro areas of Washington, D.C. -- including Maryland and Virginia -- LEDC works with approximately 6,000 people every year.

Kiva lenders’ funds are used to help LEDC support even more small businesses in low- and moderate-income communities in Washington, D.C. The funds are used to ease loan requirements, including decreasing collateral, interest rates and fees associated with loan disbursement. With Kiva capital, LEDC reaches out to borrowers that may not have met all of LEDC’s existing criteria, allowing the organization to grow its lending operations through its new subsidiary the Community Asset Fund for Entrepreneurs.

A unique approach to community-based economic development:

With its small business loans and technical assistance programs, LEDC helps small business owners and entrepreneurs in the D.C. area to strengthen their business skills and access capital to improve their lives and strengthen the small business community.

Additionally, LEDC provides classes, workshops and individual counseling for home ownership clients to help them purchase their first homes. This includes helping with credit repair and applying for the D.C. Home Purchase Assistance Program. The organization also runs an affordable housing program and a foreclosure intervention initiative, which help struggling renters and homeowners to negotiate the best long-term housing solutions for their families and communities.

LEDC helped this borrower and his family keep their home through a modification to his home loan:

User-added image

Watch a short video about the organization’s work and impact.

Image courtesy of Latino Economic Development Center.

Repayment Performance on Kiva

    This Field Partner All Kiva Partners
  Start Date On Kiva Jan 7, 2013 Oct 12, 2005
Total Loans $290,775 $596,456,075
Amount of raised Inactive loans $0 $749,875
Number of raised Inactive loans 0 614
Amount of Paying Back Loans $245,600 $119,690,425
Number of Paying Back Loans 31 127,535
Amount of Ended Loans $45,175 $476,015,775
Number of Ended Loans 7 603,926
Delinquency Rate 2.39% 3.74%
Amount in Arrears $3,331 $2,923,153
Outstanding Portfolio $139,209 $78,164,901
Number of loanDelinquent 6 10,814
Default Rate 37.30% (See Note) 1.12%
Amount of Ended Loans Defaulted $16,849 $5,345,655
Amount of Ended Loans $45,175 $476,015,775
Number of Ended Loans Defaulted 3 16,811
Currency Exchange Loss Rate 0.00% 0.09%
Amount of Currency Exchange Loss $0 $538,749
Refund Rate 6.19% 0.76%
Amount of Refunded Loans $18,000 $4,537,625
Number of Refunded Loans 2 5,064

Loan Characteristics On Kiva

    This Field Partner All Kiva Partners
  Loans to Women Borrowers 44.44% 74.20%
Average Loan Size $7,719 $418
Average Individual Loan Size $7,719 $656
Average Group Loan Size $0 $1,829
Average number of borrowers per group 0 8
Average GDP per capita (PPP) in local country $47,000 $3,427
Average Loan Size / GDP per capita (PPP) 16.42% 12.20%
Average Time to Fund a Loan 10.25 days 5.64 days
Average Dollars Raised Per Day Per Loan $752.81 $74.12
  Average Loan Term 29.39 months 10.37 months

Journaling Performance on Kiva

    This Field Partner All Kiva Partners
  Total Journals 2 297,569
  Journaling Rate 0.00% 42.38%
  Average Number of Comments Per Journal 0.00 0.08
  Average Number of Recommendations Per Journal 0.00 1.86

Borrowing Cost Comparison (based on 2012 data)

    This Field Partner Median for MFI's in Country All Kiva Partners
  Average Cost to Borrower 12% PY N/A 33.26% PY
  Profitability (return on assets) 2% N/A -1.45%
  Average Loan Size (% of per capita income) 16.90% N/A 40.88%

Country Fast Facts

Field Partner Staff

Diana Avellaneda
Zara Cabrera
Leda Hernandez
Cesar Lopez
Christina M. Stockamore