How Independent Grocers Can Leverage the Healthy Food Financing Initiative

Independent grocers are the backbone of many communities, especially in underserved areas where access to fresh, affordable food is limited. The Healthy Food Financing Initiative (HFFI) offers a unique opportunity for these grocers to expand their operations, serve their communities better, and contribute to local economic development.

The HFFI is a federal program administered by the Reinvestment Fund on behalf of USDA Rural Development. It provides financial and technical assistance to eligible fresh, healthy food retailers and food retail supply chain enterprises to overcome the higher costs and initial barriers to entry in underserved areas. These areas often lack adequate access to supermarkets and healthy food options, affecting both urban and rural communities.

Since its inception, HFFI has supported over 1,000 grocery and other healthy food retail projects across 48 states, leveraging more than $320 million in grants and approximately $1 billion in additional financing.

Independent grocers play a crucial role in bridging the food access gap. By participating in HFFI, grocers can:

• Expand Access: Bring fresh, nutritious food to communities that lack adequate grocery options.
• Stimulate Economic Growth: Create jobs and stimulate local economies through increased employment and business activity.
• Enhance Community Health: Improve health outcomes by providing access to healthier food choices.

Eligibility Criteria

To qualify for HFFI funding, independent grocers must meet specific criteria:

• Project Goals: The project should aim to expand or preserve the availability of staple and perishable foods in underserved areas with low and moderate-income populations.
• SNAP Participation: If the project involves retail sales, the store must accept benefits under the Supplemental Nutrition Assistance Program (SNAP).
• Location: The project must be located in an underserved area as defined by USDA’s Low Income Low Access (LILA) census tracts or adjacent areas with similar characteristics.

Funding Opportunities

HFFI offers various funding options to support different stages of project development:

• Grants: One-time investments ranging from $20,000 to $250,000 to address barriers to entry in the food retail or food enterprise fields. 
• Loans: Capital investments between $500,000 and $5,000,000 to support larger-scale projects. investinginfood.com
• Technical Assistance: Funding up to $100,000 to support planning and pre-development projects that build capacity to develop a food retail outlet or food enterprise.

Priority is given to projects that:

• Are located in low-income communities
• Create or retain jobs for low-income residents
• Support regional food systems and locally grown foods
• Are accessible by public transit
• Involve or are owned by women and/or Black, Indigenous, and People of Color (BIPOC)
• Are located in rural areas
• Are in areas underserved by HFFI investment

Application Process

If you're an independent grocer interested in leveraging HFFI funding:

• Assess Eligibility: Use the interactive eligibility map on the HFFI website to determine if your location qualifies as an underserved area. 
• Prepare Documentation: Gather necessary documents, including business plans, financial statements, and details about your proposed project.
• Submit Funding Inquiry Form: Complete and submit the Funding Inquiry Form through the Reinvestment Fund’s online portal. 
• Engage with Community: Demonstrate community support for your project through letters of support or partnerships with local organizations.
• Seek Technical Assistance: Consider applying for technical assistance funding to support planning and pre-development activities.
• Stay Informed: Sign up for updates on the HFFI website to receive notifications about funding opportunities and deadlines.

The Reinvestment Fund will review your inquiry to determine eligibility. If eligible, you will receive an invitation to submit a full application, which you will need to do by the specified deadlines. There is one remaining round available for the 2024-2025 funding cycle. The Funding Inquiry Form is due August 4, 2025, with the full application due October 2, 2025. Loans and technical assistance applications are accepted on a rolling basis.

By taking these steps, independent grocers can position themselves to access valuable resources through the HFFI, enabling them to expand their operations, serve their communities better, and contribute to local economic development.