For small business owners struggling to access capital, the Texas Mezzanine Fund (TMF) offers a beacon of hope.
Established in 1999, TMF is a Community Development Financial Institution (CDFI) dedicated to providing flexible financing solutions to businesses across Texas and the Southwest.
By focusing on small and medium-sized enterprises, TMF helps fund business growth, acquisitions, and recapitalization—filling a critical gap where traditional lenders often say no.
A mission to empower underserved communities
Derric Hicks, who took the helm as TMF’s CEO in June 2023, brings over 20 years of banking experience to the role; honing his skills at Wachovia, Guaranty, BBVA Compass, Prosperity, and Comerica banks.
He has made it his mission to expand access to capital for minority-owned businesses and underserved communities to stimulate economic growth and create employment opportunities.
“We have several steps in our mission statement, but at the core, we’re here to provide access to capital for communities that need it most,” Hicks explained. “Small businesses in low-to-moderate-income areas often face funding barriers, and we work to change that.”
A Florida Agricultural and Mechanical University graduate with a BS in Health Information Management earned an MBA from the University of Phoenix and he attended the SW Graduate School of Banking, focusing on Banking Leadership and Management/Banking and Financial Support Services.
Hicks is TMF’s third CEO, following the tenure of Victor J. Elmore, a longtime advocate for 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 Tax Program, further advancing its reach and impact.
Funding that drives change
Over the years, TMF has provided over $120 million in loans to Texas-based businesses, helping to finance:
The construction of 1,000 affordable housing units
The creation of 3,144 jobs
Access to more than $500 million in New Markets Tax Credit (NMTC) allocations
The NMTC program, which TMF administers, has been instrumental in financing community facilities and fostering economic growth in historically underserved areas.
Breaking down barriers
Throughout his career in banking, Hicks witnessed firsthand the regulatory restrictions that made it difficult for small businesses to secure financing. However, as a CDFI, TMF has more flexibility to provide creative solutions.
“We still have guidelines — businesses need satisfactory cash flow, for example — but we take a more expansive approach to capital access,” Hicks explained. “That might mean adjusting loan-to-value ratios, allowing for lower credit scores, or structuring more flexible repayment terms.”
He says his goal is simple: Turn a “no” into a “yes” whenever possible.
Collaboration: The key to success
Despite TMF’s flexibility, not every loan request can be approved.
Hicks and his team, however, prioritize collaborative partnerships to help businesses secure funding whenever possible.
“I think one of the most important aspects of this work is building relationships with other financial institutions and partnering with various organizations,” Hicks said.
One such example came last year when a Black-led nonprofit organization providing shelter for homeless teenage mothers faced an unexpected crisis.
The organization had a contract with the State of Texas, which typically issued payments at the beginning of each month to cover payroll and operational costs. But when the state switched vendors, a glitch delayed payments, creating a severe cash flow issue.
“The nonprofit couldn’t make payroll or pay its bills,” Hicks recalled. “That’s where TMF was able to step in.”
By offering more flexible loan terms, TMF bridged the gap, allowing the nonprofit to continue operating until the issue was resolved.
The bigger picture
Access to capital remains a significant challenge for minority entrepreneurs.
According to the Bank of America’s 2022 Women & Minority Business Owner Spotlight, 46% of minority business owners reported difficulties obtaining funding.
Meanwhile, a recent U.S. Small Business Administration (SBA) report revealed that Black business owners operate 3.5 million businesses, employing more than 1.2 million people nationwide.
A legacy of impact
For Hicks, the reward comes from knowing TMF is making a difference.
“I love going to sleep at night knowing that through education, partnerships, and creativity, we’ve helped another business survive,” he said. “It’s incredibly fulfilling to see entrepreneurs we supported 10 years ago still thriving today.”
Under Hicks’s leadership, TMF continues to expand its reach, providing vital financial resources to underserved communities and fueling economic growth across Texas and beyond.
In 2024, he accepted the Dallas Black Chamber of Commerce’s Quest for Success Award.
