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: Dallas Welcomes New CEO at Texas Mezzanine Fund
In the bustling heart of Dallas, there is significant news that stands to influence the city’s economy. The Texas Mezzanine Fund (TMF), a vital player in promoting small and medium-sized businesses throughout Texas, has appointed a new CEO—Derric Hicks. Assuming his role in June 2023, Hicks brings over 20 years of banking experience and aims to enhance access to capital for minority-owned businesses and underserved communities.
What is the Texas Mezzanine Fund?
Founded in 1999, TMF operates as a Community Development Financial Institution (CDFI). Its core objective is to bridge the gaps left by traditional lenders and provide flexible financing options that facilitate business growth, acquisitions, and recapitalizations. This mission is especially important considering that small and medium-sized enterprises are often regarded as the backbone of the Texas economy.
Success Stories and Economic Impact
Over the years, TMF has played a pivotal role in fostering economic development throughout Texas. To date, the organization has supported over $120 million in loans to local businesses, resulting in significant outcomes including the construction of 1,000 affordable housing units and the creation of 3,144 jobs. These achievements showcase TMF’s commitment to improving the quality of life in low-to-moderate-income areas.
Additionally, TMF oversees the New Markets Tax Credit (NMTC) program, which funds community facilities and encourages growth in underserved regions. This initiative is particularly crucial given that approximately 46% of minority business owners have reported difficulties in obtaining financing, according to a recent survey conducted by Bank of America.
Derric Hicks: A Vision for Growth
Hicks is set on revitalizing the dialogue around business financing. His strategy emphasizes creative solutions, which include adopting more flexible loan terms tailored to individual business needs, such as accepting lower credit scores and adjusting loan-to-value ratios. The central aim is to empower businesses not only to survive but to flourish.
Under his leadership, TMF plans to strengthen collaborations with other financial institutions to enhance support for businesses in search of funding. One notable instance involved assisting a Black-led nonprofit that faced cash flow constraints by providing flexible loan agreements. Such initiatives serve not just as valuable support, but also as essential lifelines for numerous organizations within the community.
Broader Community Support
TMF’s influence extends beyond providing direct financial assistance. The organization enjoys substantial support from community partners, exemplified by a recent investment of $250,000 from the American National Bank of Texas (ANBTX). This funding is directed towards advancing economic initiatives in southern Dallas, underscoring the city’s commitment to revitalization.
Beyond financial backing, ANBTX has contributed over $545,000 to more than 20 local organizations aimed at enhancing community efforts. The City of Dallas has also demonstrated its support by approving a $1.5 million loan and grant for constructing the Malcolm’s Point retail center, with TMF playing a critical role in facilitating this development.
A Bright Future Ahead
As TMF broadens its outreach and enhances its services under Hicks’s dynamic leadership, the potential for positive transformation in Dallas and surrounding areas appears promising. With a focus on prioritizing communities that require financial support the most, there is optimism that the economic landscape will prosper for everyone involved.
In conclusion, the initiatives undertaken by the Texas Mezzanine Fund generate a ripple effect of opportunities across Texas. With new leadership and an unwavering dedication to community progress, Dallas can anticipate a vibrant economic future built on the foundations of inclusivity and growth.
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 AUSTIN WRITER
The AUSTIN STAFF WRITER represents the experienced team at HEREAustinTX.com, your go-to source for actionable local news and information in Austin, Travis County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as SXSW, Austin City Limits Music Festival, Formula 1 United States Grand Prix, and the Austin Film Festival. Our coverage extends to key organizations like the Greater Austin Chamber of Commerce and Visit Austin, plus leading businesses in technology, automotive, and retail that power the local economy such as Dell Technologies, Tesla, and Apple. As part of the broader HERE network, including HERECollegeStation.com, HEREDallas.com, HEREHouston.com, and HERESanAntonio.com, we provide comprehensive, credible insights into Texas's dynamic landscape.
