Micro-Line of Credit Application – Guidance for DC Small Businesses

Life Asset is partnering with DC Department of Small and Local Business Development (DSLBD) providing Micro-Line of Credit (LOC) to eligible small businesses in Washington DC.

What is a business Line of Credit (LOC)?

LOC is a pre-set borrowing limit that a business owner can tap into at any time. The business borrower:

• • • • • can take money out as needed until the limit is reached (draw down);
        • As drawn-down money is repaid, the borrower can draw down that repaid amount;
        • is charged interest on any amount borrowed or drawn down; and
        • must repay full amount by the line of credit expiration date.

What are the LOC Terms?

• • • • • LOC amount: up to $25,000 (our main focus is to provide lines of credit between $5,000 – $10,000)
        • Term limit: 12 months (with option to renew)
        • Interest rate: 6% (APR).
        • Fees: No application, origination or closing fees.
        • Collateral: a) No collateral required for loans $10,000 and under. b) For loans over $10,000: Vehicle can be used as collateral, or blanket lien on accounts receivables of the business.

What can I use the LOC for?

Use of Funds: Any legitimate business expense such as equipment, inventory, working, capital, fixed assets. Loan funds cannot be used for speculative activities, investment and illegal activities. Note: If you are a food related business and not already a Life Asset client – please apply for a LOC with our partner at https://eatsplace.com/

Who may apply?

Applicant eligibility requirements include:

a. For-profit entity (Business) based in the District of Columbia. (Sole Proprietors and non-profits are not eligible at this point in time);

b. Businesses with 25 or fewer employees;
c. Businesses or business owners who are facing barriers to accessing lines of credit through banks or other traditional funders;

d. Businesses that have active incorporation status, active DC business license(s) and is located in Washington DC; and

e. Applicants that have completed DSLBD’s Equitable Access to Capital Survey (https://bit.ly/EquitableCapitalAccessSurvey) and Passport Assessment by the application deadline on October 3 by 11.59pm. Note: Link to the Passport to Funding Readiness Assessment will be provided after your completion of the Equitable Access to Capital Survey.

Deadline to Apply: October 3, 2024 by 11.59pm

How Do I Apply?

Complete the secure online loan application here,  and make sure you:

a. Choose “Line of Credit” under question “Loan Type”.

b. Include the following supporting documents when you submit your application:

1) Business and personal tax return – last two years

2) Business and personal bank statements – last three months.

3) Recent credit report (you can access your free credit report at http://www.annualcreditreport.com/)

4) Voided Check – Business Account

5). Driver’s license, state-issued photo ID.

c. By submitting your Life Asset LOC application you attest that you will also complete the DSLBD’s Equitable Access to Capital Survey and Passport Assessment by the application deadline on October 3 by 11.59pm. The link to the Passport to Funding Readiness Assessment will be provided after your completion of the Equitable Access to Capital Survey.

Have Questions or Need Assistance?

• • • • • Please sign up for information session:
          September 23rd at 1:30pm Eastern Time: Application Guidance for the Micro-Line of Credit with Life Asset (Zoom) REGISTER HERE
          September 23rd at 6:00pm Eastern Time: Application Guidance for the Micro-Line of Credit with Life Asset (Zoom) REGISTER HERE

        • Visit www.lifeasset.org/line-of-credit

        • Contact us at info@lifeasset.org with subject line Line of Credit or contact us at 202-709-0652 and press 1 for Leila; 5 for John; or 7 for Markus.
        • Life Asset also offers general business training and technical assistance. For more information, please see: https://lifeasset.org/training/ or contact us at 202-709-0652 or e-mail: info@lifeasset.org.

Need Language Assistance?

• • • • • To receive a line of credit application in your preferred language, please contact us at info@lifeasset.org or by phone at 202-709-0652.
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