The Healthy Food Financing Initiative (HFFI) Food Access and Retail Expansion Fund is a result of funding Congress allocated as part of the American Rescue Plan Act. This program will benefit both rural and urban communities across the United States.
In this post, we’ll explore the differences between the program tracks, help you determine which option best suits your needs, and outline what you need to prepare for your application.
Overview of the HFFI FARE Fund
Reinvestment Fund, the National Fund Manager for the Healthy Food Financing Initiative at USDA Rural Business-Cooperative Service, is launching America’s Healthy Food Financing Initiative Food Access and Retail Expansion (FARE) Fund. Over the next five years, the HFFI FARE Fund will provide $60 million in loans, grants, and technical assistance to food retail and food retail supply chain projects. For the 2024-2025 funding cycle, at least $9,000,000 is available for implementation grants, at least $1,500,000 for technical assistance, and at least $16,000,000 for loans.
The purpose of the HFFI FARE Fund is to:
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- Support food supply chain resiliency
- Improve access to healthy foods in underserved areas
- Create and preserve quality jobs
- Revitalize low-income communities
The Reinvestment Fund will achieve this by providing financial and technical assistance to eligible fresh, healthy food retailers and enterprises, helping them overcome higher costs and initial barriers to entry in underserved areas.
Keep reading to learn about the differences between the programs, how to determine which track is best for you, and what you need to prepare your application.
Overview of the three FARE Fund Programs
The HFFI FARE fund is looking to support eligible projects that:
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- Expand or preserve access to staple and perishable foods in underserved areas
- Focus on retail operations that accept SNAP benefits
- Demonstrate sustainability, community involvement, and innovation
- Fall within an eligible Underserved Area
If your project meets these criteria, the table below outlines the three different options.
| Technical Assistance | Implementation Grant | Loan | |
| Amount | Up to $100,000 | Up to $250,000 | $500,000 to $5,000,000 |
| Due Date | Rolling | 1st Round Inquiry: Oct 12; 1st Round Application: Dec 12 (subsequent rounds in March and August 2025) | Rolling |
| Purpose | Support for organizations planning or developing a food retail outlet or food enterprise that seeks to improve access to healthy food in underserved areas | Funding for projects that support the creation, expansion, or retention of a food retail or food enterprise business model | Capital support for enterprises processing, distributing, and selling to underserved areas affordable healthy foods |
| Types of Projects | Community food assessments and other community engagement activities | Predevelopment soft costs like appraisals, design assistance, training, and consulting for shovel-ready projects | Projects addressing a clearly defined problem and proposed solutions, with operating projections supported by market analysis and/or community assessment and industry metrics or historical financials |
| Activities include market research, feasibility studies, financial analysis, business/strategic planning, etc. | Brick-and-mortar facility development, including land or building acquisition and construction costs | ||
| Predevelopment soft costs like site location analysis, appraisals, and design assistance | Equipment and other capital needs such as technology, software, or a one-time investment in inventory | Types of loans: predevelopment, acquisition, bridge loans, construction, NMTC source loans, equipment, working capital, and other capital needs |
Are you ready to apply? A checklist
Whether you are thinking of applying now or waiting until following rounds, this checklist will help you prepare to submit a well-thought out application for the different programs.
➔What is the need that this project is addressing?
- How is your project building the local economy or improving food access for low-income families and high-needs communities? Make sure you can tell a story that connects your proposed solution to the challenge that aligns with the stated Reinvestment Fund priorities in the RFA.
➔Who are your project partners/stakeholders – who will be involved?
Qualifying projects should include diverse and relevant partnerships and reflect the input of stakeholder communities and targeted beneficiaries. Partners should consist of a combination of the following types of entities:
- Food-Related Businesses: Those that will contribute to a key component of the project and those that make up the food environment landscape and support food access.
- Community Organizations/Nonprofits: Those that provide direct service and access. They often provide insight into neighborhoods, demographics, and specific groups.
- Public Officials: Those with authority to utilize government resources and play a key role in policy advocacy, economic development, and implementing public initiatives.
- Education Institutions (schools, universities, training programs): Those that provide related education, technical assistance, and workforce development.
- Funders/Foundations: Those that provide financial resources and want confidence their money will be effectively invested.
- Users: Those who will utilize the facility in some capacity (food entrepreneurs, farmers, buyers, shoppers, etc.).
- Public: Those who will be indirectly impacted by the project (e.g., live in the community where a facility is built, customers, service providers, beneficiaries, etc.).
- Food System Expertise: Consultants, like New Venture Advisors, who can provide the technical assistance you need to plan and develop your project.
➔What are the intended outcomes? Do they respond to community needs?
- Your proposal should include metrics you will attain that meet the HFFI’s desired outcomes and directly address the stated community need.
➔Is this a model that can be replicated?
- HFFI seeks innovative approaches that offer a framework that can be replicated in other communities.
➔What is your organization’s capacity to implement a grant award?
- Large federal grants require more time than you might expect to meet project timelines, stay within budgets, complete activities, submit reports, and fulfill stated outcomes. Make sure that your organization can implement the project and, if needed, build the personnel into the proposal budget.
Other resources
Want to learn more? We’ve gathered some resources and tools (some of which we created) to help you further develop your idea and proposal.
- HFFI is hosting webinars and will post the recordings on their website
- Previous recipients: Visit HFFI to review prior awarded projects for the Partnership Program and Small Grants Program
- Widgets: Visit NVA’s Toolsite for widgets that can help you refine your plan, e.g., evaluate profitability potential or how well-suited an existing facility might be to your vision
- Blog: NVA created a Readiness Rubric, a framework to help you create a directional map of your strategy, capacity, partnerships, funding, etc., that will feed right into your grant application
- Blog: Visit NVA’s blog for many helpful articles about food hubs and small-format grocery store models
Photo courtesy of PR Image Factory via Stockphoto
