Mission Statement
The mission of ADC is to grow businesses, build wealth, and increase reinvestment in the African communities of Minnesota.
Impact and Programs
Accomplishments
We are proud of our portfolio, our community, and our borrowers who overcome many barriers to success. Many ADC clients, particularly microenterprise borrowers, come to us with almost no material assets and sometimes a poor understanding of American financial institutions and credit. By almost any measure they are a high-risk group. In FY 2019, our total loan volume was $1.91MM, an increase of 48% over 2018. And we ended the year with a significant volume still in the pipeline. In our CA program alone, we had an additional
$540K in process at year-end 2019. ADC is seeing a steady increase in clients, both for our microenterprise and our small business loan products. In 2017, 29 people attended our small business classes; in 2018 this figure was 80, and in 2019 it was 81. This class is a major source of microenterprise loan referrals. Our walk-in inquiries for loans and general business development services are up 10% over last year for the first quarter of FY 2020 (not counting inquiries related to the pandemic). In 2018, we had 87 people come to our offices to meet, as either a loan or a business development services inquiry or both. In 2019 this figure was 124 unique visitors, an increase of 42.5%.
Current Goals
Grow loan volume by 23% over the next 3 years (2019-2022) and by 55% in the next 5 years, increasing the volume of financial products we deliver to our Target Market every year. Raise additional financing capital of $4.3 million by 2022, and $7.1 million by 2024 to support
our projected loan growth. Ensure the long term sustainability of ADC by ensuring a diverse stream of revenue and maintaining the key financial ratios (NAR>30%, Net Income +, and LLR>10%) necessary to raise the additional investment we require. Expand Development Services offerings to meet the needs of a larger, more diverse, and more sophisticated array of businesses and projects including commercial real estate.
Community or Constituency Served
ADC's products and services are open and available to all Minnesotans, regardless of ethnicity or background. The majority of our clients are African immigrants or refugees and come from low-income households. The locations of clients served are spread throughout Minnesota.
Geographic Area Served
ADC serves communities throughout Minnesota, with offices located in Minneapolis, St. Cloud, and Willmar.
