For African immigrants across Minnesota and Oregon, access to affordable capital remains one of the greatest barriers to economic opportunity. With support from the African American Alliance of CDFI CEOs (The Alliance) and its Black Renaissance Fund (BRF), African Economic Development Solutions (AEDS) has been able to expand its lending capacity, giving more entrepreneurs in African immigrant communities the resources to build thriving businesses and stronger communities.
An estimated 85,000 East Africans live in Minnesota, including about 3,000 who are self-employed or own businesses. Yet, many still struggle to access financing, a reflection of a broader systemic reality in which inequitable access to capital has limited entrepreneurship and economic growth nationwide.
To help close that gap, BRF made a $1 million investment in AEDS, strengthening its ability to serve underserved borrowers.
“The Black Renaissance Fund provided the first and largest PRI [Program-Related Investment] our loan fund has received to date, and we are deeply grateful,” said Dr. Gene Gelgelu, Founder and President & CEO of AEDS. “Prior to this investment, our lending capacity was constrained, and we were unable to respond to opportunities with the speed or volume required.”
The investment has expanded AEDS’s lending capacity, streamlined its lending processes, grown its loan portfolio, and financed more small businesses that would otherwise have struggled to secure capital through traditional financial institutions. Gelgelu described the fund as transformative, deepening the organization’s ability to better meet community needs.
(Left to Right): Members of the African Economic Development Solutions (AEDS) team, borrower Asnat Ghebremedhin alongside her mother, Two AEDS loan officer, and the Ramsey County Project Officer celebrate the successful loan closing
When real estate agent Asnat Ghebremedhin set out to bring an affordable housing project to life, she had already secured government funding but still faced a financing gap. Through AEDS’ use of Black Renaissance Fund capital, she received the financing needed to unlock the remaining funds. Today, the property has been fully rehabilitated and is home to a low-income family, illustrating the lasting impact of flexible, mission-driven capital.
AEDS attributes much of its growth to The Alliance’s support in strengthening its infrastructure through technology upgrades, AERIS rating preparation, grant support, and operations. This assistance has helped position the organization for long-term sustainability and greater community impact.
Building on this momentum, AEDS is focused on scaling its lending portfolio with hopes of reaching more small businesses who have historically faced barriers to traditional lending.
“The Black Renaissance Fund is the only fund focused specifically on closing the capital capacity of Black-led CDFIs,” said Amber Banks, President & CEO of The Alliance. “AEDS is a powerful example of the critical need for inclusive resources. When community lenders are supported, entire communities gain greater access to capital and opportunity.”
Through the Black Renaissance Fund, The Alliance is helping Black-led CDFIs turn unmet demand into economic opportunity by providing flexible, accessible capital that strengthens businesses, supports families, and creates pathways to generational wealth.
To learn more about this innovative investment fund, visit https://aaacdfi.org/black-renaissance-fund/.
