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African Economic Development Solutions seeks continued state support for small-business lending and technical assistance
Summary
Senate File 19-34 would appropriate $2 million in FY2026 to African Economic Development Solutions for lending, technical assistance and community economic development; witnesses described loan recirculation, small-business job creation and a newly opened Little Africa Plaza incubator.
Senate File 19-34, a request for $2,000,000 in fiscal year 2026 from the General Fund for African Economic Development Solutions (AEDS), was presented to the Senate Committee on Jobs and Economic Development. A DEED fiscal analyst confirmed AEDS received a $2,000,000 one-time appropriation in FY2024-25; the bill would provide a similar one-time allocation in the next biennium.
Sponsor Senator Champion said the appropriation would support lending and technical assistance targeted to African immigrant entrepreneurs and credited AEDS with deploying funds that have supported small-business lending and an incubator redevelopment called Little Africa Plaza on Snelling Avenue in Saint Paul. Dr. Jean Kalkalu, founder, president and CEO of AEDS, said the organization provides culturally grounded business training, technical assistance, lending and creative place-making; he told the committee that AEDS deployed funds that created 68 jobs in the prior funding period.
Business leaders testified to the programs impact. Palmas Abudazzo, CEO and founder of Frontier Transportation Services, said AEDS provided an initial $25,000 loan that allowed his company to expand from six vans and five employees to over 40 vehicles and more than ten employees, later returning for larger loans that supported growth and hiring where traditional lenders required three years of operational history. Proponents said AEDSs lending model recirculates capital as loans are repaid, enabling multiple businesses to receive support.
The committee laid Senate File 19-34 over for possible inclusion; no committee vote was taken during the hearing.
