LEDC Contractor Benefits

LEDC Contractor Benefits

Contractors benefit from joining the LEDC network by expanding their businesses to more homeowners, including low and moderate-income (LMI) households and people with low credit. There are no fees to join the network and there is a zero cost of capital for your projects. 

Become a Trusted LEDC NextGen Impact Fund Contractor

We encourage all contractors to apply to become a LEDC-approved contractor, as there are many benefits involved, such as sales growth, training, and co-marketing opportunities. 

Requirements for Contractor Eligibility: 

  • Must have current General Liability Insurance. 
  • Must have current Workers Compensation Insurance or an Exemption Certificate. 
  • Must be able to provide a Copy of a signed W-9 
  • If you do not hold a state specialty license, must have a current Occupational License 
  • If you are eligible to apply to become a LEDC-approved contractor, please proceed with the Contractor Application below. 

Eligible home renovation projects that can be financed:

  • Energy efficiency:
    • High-efficientcy HVAC
    • Lighting
    • Solar
    • Insulation
    • Ductwork
    • Weatherization
    • Pool pumps and motors
    • Other? Contact us
  • Solar energy:
    • PV panels
    • Water heater
    • Attic fans
    • Pool pumps, heaters, motors
    • Backup batteries
  • Roofing:
    • Storm/wind hazard mitigation/protection
    • Windows
    • Roof repair and replacement
    • Hurricane shutters
    • Flashing and vent sealing
    • Hurricane straps/clips
    • Doors and frames
  • Water conservation and quality:
    • Irrigation packages
    • Lateral lie replacement
    • Rain barrel and cisterns
    • Conversion from septic
    • Low flow fixtures
    • Heat pump hot water heaters
  • Health and Safety:
    • Mold remediation
    • Disability, accessibility and aging-in-place modifications
    • Wheelchair ramps
    • Door frame modifications
    • Walk/roll-in showers
    • Widening hallways
    • Pulldown shelving
    • Other? Contact us

As the authorized agent for this business, please be prepared to submit the required credentials and to acknowledge the Terms and Conditions for the completion of the application.

Apply to Join the LEDC Contractor Network

 

Frequently Asked Questions (FAQ)

What does LEDC do? 

  • LEDC is an independent, nonprofit, Community Development Financial Institution (CDFI) Through this partnership with SELF, LEDC is focusing on financing home renovations that promote energy efficiency, clean energy alternatives, storm protection, water conservation, and disability products. LEDC provides homeowners with building science expertise, project management, and access to low-cost capital to help identify and finance sustainable home improvement projects. 

Is there a fee to become an Approved Contractor? 

  • No. LEDC does not charge any application or annual fees to become an Approved Contractor. 

Is there a fee to utilize LEDC’s financing? 

  • No. LEDC does not charge the contractors any fees to use LEDC financing. 

How can LEDC help my clients? 

  • LEDC is an alternative financing source for clients who may not qualify for a traditional loan at a bank or through financing programs established through the contractor’s company. 

How can LEDC help our business grow? 

  • LEDC gives opportunities to clients who may not qualify for the financing offered by the contractor or traditional banks. As an alternative financing source, more clients may be approved rather than denied. This will increase sales. 

How do people apply for the program? 

  • Clients can apply by visiting our online application or by contacting us. 

How do I apply to become an Approved Contractor? 

  • Complete the contractor application or contact us. 

How do contractors get paid? 

  • Once a loan is approved and closed, the contractor receives a Notice to Proceed (NTP) email and the work can then commence. Once the installation is complete and inspected (if applicable), the contractor submits the final paperwork to LEDC and the payment process begins. Payments are processed on Wednesdays. Refer to the payment schedule provided by the Program Manager(s) for more information. Contractors may receive a check in the mail or, in order to receive payments quicker, submit a Direct Deposit Authorization form to LEDC. 

Does LEDC offer monetary draws to help with upfront project cost? 

  • Yes, but an application for the Contractor Advance Financing has to be completed, submitted, and approved by LEDC management. Specific terms apply. Contact the LEDC office for more details. 

Where do you lend? (geographically) 

  • LEDC is certified to lend in Washington, DC (soon), Maryland, and Virginia. 

Is there an income cap for clients to qualify? 

  • No. Anyone can apply for financing as long as they own the home, have provable income, are current on property taxes, and have disposable income to pay back the loan. 

What types of improvements do you finance? 

  • LEDC finances over two dozen types of improvements promoting energy efficiency, clean energy alternatives, storm protection, water conservation, and disability products. Some of the top financed products include but are not limited to air conditioners, insulation, roofs, doors, windows, solar water heaters, solar PV, weatherization, and much more. 

What are your interest rates? 

  • Interest Rates range from 5% – 9.9%. *Interest rates depend on available funding and the terms set by LEDC funders. 

How long does the process take for a client to become approved? 

  • The process to become approved can take 24 hours to one week. It all depends on the client response, requested and/or required document submission, and information provided. 

Can anyone apply? 

  • Qualifications for your customers/clients to apply:

    • Must be the, or one of the, homeowner(s).
    • Must be current on property taxes. 
    • Must have provable income. (wages, retirement, disability, etc.) 
    • Must be able to have the disposable income to pay back a loan. 

What are the credit criteria for applicants? 

  • LEDC accepts all applications regardless of credit. A co-signer may be required based on credit history or the type of product being financed. A full evaluation is conducted by the underwriting team and a final decision is made based on a combination of factors. 

 Do contractors receive a referral or finder’s fee per client that is referred and who gets financed? 

  • No, not from LEDC. 
  • LEDC does, however, have a Contractor Network that approved contractors can become a part of in order to use our No Dealer/Merchant Fee financing for their customers.
  • If you’d like more detailed information, please contact the LEDC office. 

Apply to Join the LEDC Contractor Network