The USDA launched a new program focused on getting healthier foods into underserved communities.
The USDA and Reinvestment Fund recently launched a new program under the Healthy Food Financing Initiative (HFFI) to increase access to healthy foods in communities underserved by grocery stores. The new Food Access and Retail Expansion Fund (FARE Fund) uses funds from the American Rescue Plan Act.
Through the HFFI FARE Fund, USDA and the Reinvestment Fund are making available $60 million in loans, grants and technical assistance for food retail and food retail supply chain projects that increase access to healthy food in communities underserved by grocery stores. Funding will be available for the next five years.
Eligible organizations include food retailers and food retail suppliers.
Applicants may apply for loans ranging from $500,000 to $5 million to implement healthy food projects. Funds may be used to support predevelopment, land acquisition, renovations and equipment purchases.
Applicants may also apply for grants up to $250,000 to implement healthy food projects. Funds may be used to support project management, equipment purchases and construction.
The program also offers funding for business support, or technical assistance, to support projects in their early stages. Funds may be used to support market and feasibility studies, business planning and store design.
Potentially eligible projects can check for eligibility now and sign up to be notified when the program begins accepting applications at: www.investinginfood.com/fare-fund
Background
Many low-income communities lack adequate, affordable access to healthy food. HFFI provides grants and loans to entities that offer healthy foods in communities that are underserved by grocery stores and other food retailers. The program increases access to healthy foods, provides new market opportunities for farmers and ranchers, stabilizes small and independent retailers, and creates good-paying jobs and economic opportunity in low-income communities.
The FARE Fund is an expansion of HFFI administered by the Reinvestment Fund on behalf of USDA Rural Development.
Through HFFI, USDA partners with Reinvestment Fund to bring healthy food options to underserved rural, urban, and Tribal communities. Reinvestment Fund serves as USDA’s National Fund Manager. It raises capital, provides financial and technical assistance to regional, state, and local partnerships, and helps fund projects to improve access to fresh, healthy foods in underserved areas.
