Pennsylvania Fresh Food Financing Initiative

The Pennsylvania Fresh Food Financing Initiative (FFFI) brings supermarkets and grocery stores to underserved urban and rural communities. The program is a public-private partnership that uses public policy, market analysis, and leveraged capital to stimulate supermarket development to provide low-income neighborhoods with fresh food. Supermarket accessibility is linked to reduced risk of developing diet-related diseases such as obesity, heart disease, and diabetes. FFI helps grocery stores overcome the initial financial barriers that grocery stores in urban areas and smaller operators in rural communities face. The program is a partnership between the Commonwealth of Pennsylvania and (1) The Reinvestment Fund, a community development institution that manages the financing and grant program, (2) The Food Trust, a nutrition advocacy organization that identifies underserved communities, (3) the Greater Philadelphia Urban Affairs Coalition, an organization that creates opportunities for minority workers.

The goal of the Fresh Food Financing Initiative is to remove financing obstacles and operating barriers for supermarkets in poor communities, stimulate investment of private capital in low-wealth communities, create jobs, prepare and retain a qualified workforce, and reduce diet-related diseases by providing healthy food.

More than $55.2 million in loans and $9 million in grants have been approved and distributed, with an expected gain of 4,150 jobs and 1.55 million square feet of commercial space. As of May 2009, 46 applicants have received funds. Urban stores have ranged from 17,000 to 65,000 square feet, employing 150 to 200 full- and part-time employees with weekly sales of $200,000-$300,000. Rural stores are frequently smaller family-owned with 10 to 84 employees. In low-income urban areas, the introduction of a new supermarket boosted home values within a 1 mile radius by $1,500. A multi-year study has commenced to determine community health impact. FFFI resources have also been used to support the Corner Store Initiative, allowing 29 corner grocery stores to carry fresh fruit, as well as the Green Super Markets Initiative which promotes environmentally friendly design, products, and practices within urban grocery stores.