Black Money Series: A conversation with Tate Hill from Access Plus Capital

Justin Minott from the African American Alliance of CDFI CEOs interviews Tate Hill, Executive Director of Access Plus Capital, focusing on his journey, mission, and the impact of his work. Here is a brief recap of this powerful conversation:

Justin Minott: Who is Tate Hill at the core? What are you made of?

Tate Hill: I’m deeply influenced by my parents,Tate Hill senior and Carla Hill who are both entrepreneurs and pastors in our community, and they are at the foundation of who I am. When I think about my values, the things that are my principles, and how I live my life, it's all thanks to them. Their teachings instilled in me the values of community responsibility and purpose.

Growing up in Southwest Fresno, on the other side of the tracks, a neighborhood hat has had it's challenges, but also strong community ties, shaped my commitment to serve others and recognize the importance of giving back. So I really stand on the shoulders of so many people that have invested into me, invested into my community, invested into what they saw and potential. And they constantly remind me, make sure that you're also pouring into the lives of other folks. 

Justin: How did growing up with pastors shape your leadership style?

Tate: My parents’ work in the church taught me the importance of contributing to something larger than myself and to always give back. This work ethic translates into my leadership approach, emphasizing the need to love the people and the work.Working for the community and being involved in a small church, you learn to do a lot of different things, and that really translates into community based work. And so to me, It was an easy transition into the CDFI space. No budget, no problem. I learned not to become bitter in tough situations but to help improve them by supporting others.

Justin: Can you share your journey to Access Plus Capital?

Tate: My path wasn’t straightforward. There were limited opportunities for young adults when I graduated, so I thought I had to leave Fresno for better opportunities. However, a fellowship program opened my eyes to the potential in the Central Valley with the Great Valley Center. My my nonprofit journey began with affordable housing initiatives, affordable housing, self help housing organization, and then a community development corporation right in my neighborhood, like 3 blocks away from where my parents grew up.

Being able to work for an organization that gave me an opportunity to work on everything from, small business training, to helps establishing an African American loan fund, even though I had no idea what I was doing. All that led to the Black Chamber of Commerce. Realizing that access to capital was a major barrier for local businesses, I connected with Fresno CDFI, which eventually created a position for me despite my lack of formal lending experience. I became CEO during the pandemic in July 2020, and that was a pivotal moment for our organization.

Justin: What advantages does your background bring to your work?

Tate: Being rooted in the community I serve allows me to see firsthand the challenges and opportunities that local businesses face. I'm going to the restaurants, the grocery stores, barber shops, insurance agencies, and retail stores, as a patron and these these people are also our clients. Traditional institutions often overlook these nuances, but our lending has historically focused on communities of color, with over 90% of loans going to entrepreneurs of color and women last year. This connection enables us to tailor our services to meet the specific needs of our community.

Justin: How do you ensure true inclusion in your lending practices?

Tate: We realized that measuring our impact was crucial. We were determined to be intentional about the direction of the organization. Our vision is to eliminate access to capital as a barrier to success. We've been actively analyzing our lending data and identify gaps in service to underinvested communities because there is a racial and wealth gap in this country, this city and in these communities. And so we're going to focus and have a strategic focus on the communities most underinvested in, which puts onus on the institutions. By shifting from intention to strategic action, we focus on partnerships and community engagement to improve our outreach and lending practices.

Justin: Talk about your approach to ecosystem building in your work.

Tate: We commissioned a study, in 2022 with our Central Valley Community Foundation to look at what is the demand and need for CDFI mission based lending in Fresno County. It revealed a significant capital gap. Our ecosystem approach involves collaborating with various stakeholders—technical assistance partners, local government, and funders—to create a coordinated impact. We know that we can't be everything to our clients. Our lending model isn't one size fits all, but by collaborating and aligning our goals with those of our partners, we can address the larger systemic issues and help ensure that businesses are not only loan-ready but also capital-ready. This collective effort is essential for fostering growth in our community.

Justin: What is capital alignment, and how do businesses know the right type of capital for their needs?

Tate: That's a wonderful question, and it's one that we often struggle with. Someone may come to us as a business, asking for a loan. In some cases, they may be better suited for venture capital. The challenge of that is, do I have access to that? Right? So it's really about matching a business's financial needs with the appropriate funding source. Key determining factors include ownership preferences—if a business owner wants to retain full ownership, venture capital may not be the right choice. Additionally, if collateral or guarantees are a concern, traditional lending may be challenging. As lenders, we aim to build a relationship that fosters trust with our clients, which allows us to understand each business's unique situation and provide tailored options without judgement.

Justin: Brilliant. Can CDFIs lend outside their immediate communities or restricted to their region?

Tate: Community Development Financial Institutions (CDFIs) are vital in providing flexible lending options. There are 1300 plus CDFIs in, across the country, and I think that number is growing and changing, all the time. So it really depends on the scope of their work. While many CDFIs focus on local communities, some have broader scopes and can lend nationally. It's crucial for businesses to seek local CDFIs as they understand community nuances and can often refer clients to one another when needed. Many businesses mistakenly self-select out of lending opportunities due to past rejections, but CDFIs are often more willing to consider unique circumstances and provide them with a technical assistance financial plan to better their odds of success.

Justin: When should someone consider intrapreneurship over entrepreneurship?

Tate: Entrepreneurship isn't for everyone. Success can be defined in various ways. Just because you're not making a $1,000,000 doesn't mean that you don't have a successful business. If your business is supporting your household, to me, that's success. However, If a business isn't profitable after multiple attempts and is relying on external support, it may be time to reassess. Sometimes, gaining experience in another job can provide valuable insights for future entrepreneurial ventures. There is no formal, formulaic route to success. The key is learning from failures and determining if support systems, like a good personal or virtual assistant, could change the business trajectory.

Justin:  Are you in competition with other BIPOC mission driven CDFIs in the same space? 

Tate: No, we often collaborate, which is crucial among CDFIs. Instead of competing, we often refer clients to each other based on their specific needs and we sit on on another's boards. The demand for capital in communities is significant, so by working together, we can better meet that demand. Many banks also refer clients to CDFIs when they don't fit traditional credit boxes, creating a network of support for businesses and so we see that as a win for the client.

Justin: What does black liberation mean to you?

Tate: Black liberation is about the freedom to make choices—how to use one's talents, leverage relationships, and uplift others. Access to capital facilitates these choices, allowing for meaningful decisions within the community. When CDFIs empower black-led initiatives, it creates opportunities for economic growth and community development, which is a vital part of liberation.

Justin: Any relation to Willie Hill from Greater Cincinnati Microenterprise Initiative?

Tate: Not that we know of. I've talked a lot with Willie Hill. That's a good brother there. We did try to go down the line. But as my dad says, as my dad says, one good Hill is worth 2 or 3 of anything else. 

Justin:  I love it. Well, shout out to Willie Hill and shout out to you, Tate, for making time to be here. This has been incredible. Thank you for your wisdom, for your heart, for your mind. Any final thoughts?

 Tate: I just wanna say thank you, to you, Justin, and the Alliance for all the support. I really appreciate the leadership and the support that the African American Alliance of CDFI CEOs provides not only to our organization, but to the body of organizations. Their advocacy work, connection to capital, the relationship and the support is so critical. And I would say that the African American Alliance is a key part of the CDFI ecosystem of Black Economics and small businesses. So, thank you to the Alliance. Thank you, Justin, for your work. Keep up the faith. Keep up the good work. And, we'll hopefully look forward to seeing you soon.

Justin: Thank you so much. That means the world. Because this is what we do. This is why we do it.

 Thank you for reading! You can watch the full interview HERE. Be sure to connect with Tate Hill and follow him HERE to stay connected to the impact.