Implementing healthy food financing initiatives with the right capital

Introduction: The Reinvestment Fund, one of the nation's leading community development financial institutions (CDFI), has been working to improve fresh food access in underserved communities since 2004. The Pennsylvania Fresh Food Financing Initiative (FFFI), a nationally recognized success, helped develop 88 new or improved grocery stores and alternative healthy food business enterprises in “food deserts” throughout the state. Central to FFFI's achievements was the diversity of capital sources that allowed the program to offer a broad range of financial products to its customers. Methods: FFFI used a blend of loans and loss reserves; tax credits incentives for investors; and grants to support a wide range of purposes. Each of FFFI's financial tools offered unique benefits and were designed to provide an appropriate level of support for healthy food retailers, whether the project involved construction of a new full-service urban supermarket or the refresh of small rural grocery store or purchase of EBT equipment by farmers' markets. Results: Replication efforts modeled on FFFI are being launched at the federal level and in several states and cities. As more and more communities develop financial incentives to improve access to healthier foods at affordable prices, there is much to learn about various sources of capital that can be used to fund these initiatives. Discussion: Our presentation will explore the advantages and disadvantages of potential sources of funding for healthy food financing initiatives and compare the different financial incentives that underpin FFFI and new programs in California, New Jersey, New York and New Orleans.