Sec. 2. Grant program to establish grocery stores in underserved communities
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/bill/114/hr/4833/ih/section-2A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
The Secretary shall establish a program to provide capitalization grants to States for the purpose of establishing revolving funds to support the establishment and operation of grocery stores in underserved communities. A State receiving funds under this Act shall administer the revolving fund of the State through an instrumentality of the State with such powers and limitations as may be required to operate such fund in accordance with the requirements of this Act. Amounts in a revolving fund shall be used for the purpose of making loans— to open a grocery store in an underserved community, except that such loan may not be used for the purpose of new construction; to support the operations of an existing grocery store in an underserved community; to facilitate the fair market value purchase of an existing grocery store in an underserved community; or to support the operations of a program participant that is located in a community that would be an underserved community if the program participant was not located in such community.
A State receiving a capitalization grant under this Act may only make a loan from the revolving fund of the State to an entity that the State determines— is a grocery store or will be a grocery store after opening; emphasizes or will emphasize unprocessed, healthful foods; provides or will provide a variety of raw fruits and vegetables; provides or will provide staple foods; has a plan to keep such foods in stock to the extent possible; charges or will charge prices at or below municipal averages; and is sufficiently qualified to operate a grocery store.
A State shall prioritize an application for a loan from the revolving fund of the State from a nonprofit organization or municipally owned entity that the State determines— hires or plans to hire workers who reside within the underserved community that would be served by the entity; provides or plans to provide classes or other educational information about a healthful diet; sources or plans to source food from local urban farms and gardens; does not or will not sell alcohol or tobacco products; demonstrates existing supply chain relationships in the grocery industry; or demonstrates expertise in the grocery industry.
A State shall prioritize an application for a loan from the revolving fund of the State from a for-profit entity that the State determines meets any of the requirements in clauses
(i)through
(iv)of subparagraph (A). An entity that desires a loan from a revolving fund of a State shall submit an application to the State at such time, in such manner, and containing such information as the State may require. A loan distributed from a revolving fund by a State may be used by a program participant only for the purposes specified in subsection (c). A loan distributed by a State from a revolving fund shall be made at or below market interest rates, including an interest free loan, at terms not to exceed the lesser of 30 years or the projected useful life (as determined by the State) of the project to be financed with the proceeds of the loan. A loan may be distributed from a revolving fund by a State to a program participant in a lump sum or in multiple distributions over a period of years. A State may not provide a loan to a program participant from the revolving fund of the State in a fiscal year that exceeds 10 percent of the amount available from the fund for making distributions in that fiscal year. Annual principal and interest payments on a loan received from a revolving fund of a State shall commence not later than 1 year after the loan is disbursed to the program participant and all loans will be fully amortized upon the expiration of the term of the loan. A program participant shall establish a dedicated source of revenue for repayment of a loan received from a revolving fund of a State. A revolving fund of a State shall be credited with all payments of principal and interest on all loans made from the revolving fund. A State shall charge a program participant an administrative fee of not more than 4 percent of the loan amount. The State shall use the fees to administer the revolving fund and conduct administration activities under this Act. The Secretary shall provide technical assistance to program participants to assist with sourcing of food, food storage, and other operational requirements. In the case of the bankruptcy of a program participant, amounts owned on a loan from a revolving fund shall be afforded precedence over other debt. Earnings of a nonprofit organization or municipally owned program participant that are attributable to a loan received from a revolving fund of a State shall be used for reinvestment into the program participant or to support the continuity of operations of the program participant.