AFRICAN DEVELOPMENT CENTER BOOKS $500,000 IN LOANS FROM OTTO BREMER TRUST INVESTMENT

MINNEAPOLIS, Oct. 10, 2019 – The African Development Center (ADC) has booked more than $555,000 in loans from a $1 million investment from the Otto Bremer Trust to help African entrepreneurs grow their businesses and become successful contributors to the regional economy. 

Additionally, ADC has approved $100,000 that is awaiting funding and another $250,000 in the pipeline committed for loan making.

As the African refugee and immigrant community continues to grow in Minnesota — up from 5,000 in 1990 to more than 100,000 today—the need for culturally-aligned financial support is also increasing. ADC is dedicated to the economic empowerment and success of African immigrants, many of whom face language, cultural, and religious barriers. ADC actively works to reduce these barriers and create a path for African immigrants to achieve financial success.

“ADC is a one-stop shop for high quality business services,” said Nasibu Sareva, ADC’s executive director. “Our market niche is not well-served by traditional bank lenders, so with the help of the $1 million investment by the Otto Bremer Trust, we hope to raise $10 million over the next five years to increase access to capital for African immigrants throughout the state.”

ADC couples loan disbursement with educational and training services in nine different languages to help African entrepreneurs overcome a range of barriers to financial success.  These include low income, few assets, no credit history, limited language ability, and little experience with business or real estate.

In 2018, ADC disbursed $1,293,696 which leveraged over $2 million in business investment by clients, and so far through 2019 ADC has booked $1,462,386 which leveraged over $1.79 million in loans closed.

ADC was a pioneer in launching profit‐based loans to Minnesota—loans specially structured to meet the needs of Muslim borrowers.  Such loans now make up close to half of ADC’s transactions and are a particularly popular product in rural markets. While other organizations partner with ADC in lending to African entrepreneurs in the Twin Cities, without ADC there would be little to no support for African immigrant entrepreneurs outside the metro area.

About the African Development Center

Since its inception in 2004, the African Development Center has been dedicated to the economic empowerment and success of African immigrants. Minnesota is home to more than 100,000 African immigrants, many of whom face language, cultural, and religious barriers. ADC actively works to reduce these barriers and create a path for African immigrants to achieve financial success.

Photo credits: African Development Center