News Summary
Dallas has welcomed Derric Hicks as the new CEO of the Texas Mezzanine Fund, a key player in financing small and medium-sized businesses. With over 20 years in banking, Hicks aims to improve access to capital for minority-owned businesses and underserved communities. TMF focuses on flexible financing solutions and has already backed over $120 million in loans, supporting significant economic development in low-to-moderate-income areas. Under Hicks’s leadership, the fund is poised to enhance its community impact and support the local economy.
Texas Mezzanine Fund Expands Access to Capital Under New CEO Derric Hicks
The Texas Mezzanine Fund (TMF), a Community Development Financial Institution (CDFI) established in 1999, is enhancing access to capital for small and medium-sized businesses across Texas and the Southwest. Under the leadership of newly appointed CEO Derric Hicks, who took the helm in June 2023, TMF is focusing on funding business growth, acquisitions, and recapitalization—particularly for minority-owned businesses and underserved communities that often face barriers with traditional lenders.
Hicks brings over 20 years of banking experience to TMF, having worked at institutions such as Wachovia, BBVA Compass, and Comerica. His current mission is to ensure that communities in low-to-moderate-income areas can obtain the capital they need to thrive. Since its inception, TMF has successfully provided over $120 million in loans to Texas businesses, contributing to the construction of 1,000 affordable housing units and creating 3,144 jobs. Furthermore, TMF has facilitated access to more than $500 million in New Markets Tax Credit (NMTC) allocations which promote growth in underserved areas.
Focus on Minority-Owned Businesses
Hicks has placed a strong emphasis on supporting minority-owned businesses, as recent data indicates that 46% of minority business owners report difficulties in securing funding. The U.S. Small Business Administration estimates that Black business owners operate approximately 3.5 million businesses nationwide, employing more than 1.2 million people. TMF aims to bridge the funding gap for these entrepreneurs through innovative financing solutions.
To that end, TMF is offering more flexible loan terms, such as adjusting loan-to-value ratios and accepting lower credit scores, which can help alleviate some of the typical challenges faced by underserved business owners. An example of TMF’s impact includes assisting a Black-led nonprofit facing cash flow issues with tailored loan terms that allowed the organization to continue its operations and serve the community.
Partnerships and Investments
Partnerships with other financial institutions are also a key strategy for TMF as it helps businesses secure necessary funding. Recent investments include a $250,000 contribution from American National Bank of Texas (ANBTX) to support economic initiatives in Southern Dallas. ANBTX has also donated over $545,000 to more than 20 organizations to aid in community revitalization efforts.
Moreover, the city of Dallas has authorized a $1.5 million loan and grant for the development of Malcolm’s Point retail center. This project, which is a collaboration with SouthFair Community Development Corporation, is supported by TMF and adds to the organization’s commitment to uplifting communities through strategic funding opportunities.
Long-term Vision
Under Hicks’s leadership, TMF is continuing to expand its reach and services, aiming to build lasting relationships that empower businesses within underserved areas. His dedication to seeing the success of previously supported businesses fuels his commitment to TMF’s mission. In recognition of his work, Hicks received the Dallas Black Chamber of Commerce’s Quest for Success Award in 2024.
As the Texas Mezzanine Fund moves forward, the organization remains focused on providing essential financial resources to those who need it most, ensuring that no business is left behind due to lack of access to capital.
Deeper Dive: News & Info About This Topic
- Dallas News
- Business Wire
- WFAA
- Wikipedia: Community Development Financial Institution
- Google Search: Texas Mezzanine Fund
Author: STAFF HERE COLLEGE WRITER
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