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 established in 1999, is significantly expanding its efforts to provide financial support to small and medium-sized businesses in Texas and the Southwest. Under the leadership of newly appointed CEO Derric Hicks since June 2023, TMF aims to enhance access to capital for minority-owned businesses and underserved communities, an initiative that aligns with the organization’s longstanding mission to fund business growth and development.
With more than 20 years of experience in banking at financial institutions such as Wachovia, BBVA Compass, and Comerica, Hicks brings a wealth of expertise to TMF. His appointment comes at a pivotal time when many minority business owners are facing challenges in securing the necessary funding to thrive. A Bank of America survey from 2022 revealed that 46% of minority business owners reported difficulties in obtaining financial resources.
To date, TMF has successfully provided over $120 million in loans to Texas businesses. This funding has facilitated the construction of 1,000 affordable housing units and generated 3,144 jobs. Furthermore, TMF has allocated more than $500 million in New Markets Tax Credits (NMTC), which directly finance community facilities and foster growth within underserved areas. The NMTC program, administered by TMF, plays a vital role in addressing the financial gaps left by traditional lenders.
Innovative Financing Solutions
Hicks emphasizes the need for creative financing solutions that adapt to the specific circumstances of businesses, such as adjusting loan-to-value ratios and accepting lower credit scores. This approach aims to broaden TMF’s reach and support businesses that may otherwise struggle to secure necessary financing. For instance, TMF was able to assist a Black-led nonprofit organization dealing with cash flow issues by offering flexible loan terms tailored to its needs.
Alongside nurturing relationships with financial institutions to enhance collaborative funding efforts, TMF is also working with other organizations to engage in community revitalization projects. An example of this collaboration is the recent approval of a $1.5 million loan and grant by the city of Dallas for the development of Malcolm’s Point retail center, in partnership with SouthFair Community Development Corporation, with TMF’s support.
Ongoing Commitment to Economic Growth
Under Hicks’s leadership, TMF is reaffirming its commitment to provide access to capital in low-to-moderate-income areas, where financial resources are often scarce. Hicks finds fulfillment in witnessing the success of businesses supported by TMF in previous years, which reinforces the organization’s belief in the potential of the communities they serve. To further empower these communities, TMF is poised for ongoing expansion, including enhancing its services to better meet the needs of underserved populations.
In recognition of his significant contributions to community development, Hicks received the Dallas Black Chamber of Commerce’s Quest for Success Award in 2024. TMF’s efforts have also seen support from local financial entities like American National Bank of Texas (ANBTX), which invested $250,000 into TMF to help advance economic initiatives in Southern Dallas. ANBTX has also contributed over $545,000 to support more than 20 organizations focused on community revitalization.
In summary, the Texas Mezzanine Fund is undergoing a transformative phase under CEO Derric Hicks, who aims to enhance access to capital for minority-owned businesses and underserved communities. With innovative financing strategies and collaboration with local institutions, TMF continues to champion economic growth and community development across Texas.
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