For owners of small businesses who find it difficult to access the capital, the Texas Mezzanine Fund (TMF) offers a headlight of hope.
Created in 1999TMF is a Community Development Institution (CDFI) dedicated to the supply of flexible financing solutions to companies in Texas and South West.
By focusing on small and medium -sized enterprises, TMF helps finance business growth, acquisitions and recapitalization – combine a critical gap where traditional lenders often say no.
A mission to empower badly served communities
DERRIC HICKSWho took the bar as CEO of TMF in June 2023, brought more than 20 years of banking experience to this role; Generating his skills in Wachovia, Guaranty, BBVA Compass, Prosperity and Comerica Banks.
Its mission is to expand access to capital for companies belonging to minorities and poorly served communities to stimulate economic growth and create job opportunities.
“We have several stages in our mission statement, but in the heart, we are there to provide access to capital for the communities that need it most,” said Hicks. “Small businesses in low to moderate income areas are often faced with financing obstacles, and we are working to change this.”
An agricultural and mechanical graduate of Florida with a BS in health information management obtained an MBA from the University of Phoenix and attended the SW Graduate School of Banking, focusing on leadership and management / banking and financial support services.
Hicks is the third CEO of TMF, after the mandate of Victor J. Elmore, a longtime defender of economic inclusion.
Elmore, who joined TMF in 1999 as CEO and later became President and CEO in 2005, continues to support the organization through its market on the market, further progressing its scope and impact.
Financing which leads to a change
Over the years, TMF has granted more than $ 120 million in Loans to Texas -based Business Business, helping to finance:
The construction of 1,000 affordable dwellings
The creation of 3,144 jobs
Access to more than $ 500 million in new markets tax credit allowances (NMTC)
The NMTC program, which TMF administers, has played a decisive role in the financing of community facilities and the promotion of economic growth in areas historically inserted.
Decompose barriers
Throughout his career in the bank, Hicks first witnessed the regulatory restrictions that made it difficult for small businesses to guarantee funding. However, as CDFI, TMF has more flexibility to provide creative solutions.
“We always have guidelines – companies need satisfactory cash flow, for example – but we adopt a larger approach to capital access,” said Hicks. “This could mean adjusting loan / value ratios, allowing a drop in credit scores or structuring more flexible reimbursement conditions.”
He says that his goal is simple: transform a “no” into “yes” whenever possible.
Collaboration: the key to success
Despite the flexibility of TMF, all loan requests cannot be approved.
Hicks and his team, however, prioritize collaborative partnerships to help companies obtain funding whenever possible.
“I think that one of the most important aspects of this work is to establish relations with other financial institutions and to associate itself with various organizations,” said Hicks.
Such an example came last year when a non -profit organization led by blacks offering a shelter to homeless teenage mothers faced an unexpected crisis.
The organization had a contract with the state of Texas, which generally issued payments at the beginning of each month to cover pay and operating costs. But when the state has changed sellers, a problem has delayed payments, creating a serious problem of cash flow.
“The non -profit organization could not make payments or paying its bills,” recalls Hicks. “This is where TMF was able to intervene.”
By offering more flexible loan conditions, TMF has filled the gap, allowing non -profit organization to continue to operate until the question is resolved.
Overview
Access to capital remains an important challenge for minority entrepreneurs.
According to the Bank of America 2022, the owners of women and the minorities, 46% of owners of minority companies declared difficulties in obtaining funding.
Meanwhile, a recent report by the United States Small Business Administration (SBA) has revealed that black business owners operate 3.5 million companies, employing more than 1.2 million people on a national scale.
An impact inheritance
For Hicks, the award has just known that TMF makes a difference.
“I love going to sleep at night knowing that thanks to education, partnerships and creativity, we have helped another business to survive,” he said. “It is incredibly satisfactory to see the entrepreneurs that we supported even more prospered today.”
Under the direction of Hicks, TMF continues to extend its scope, providing vital financial resources to poorly served communities and fueling economic growth through Texas and beyond.
In 2024, he accepted the Quest for success price of the Dallas Black Chamber of Commerce.