Food Deserts Act

Increased Access to Healthy Food: Loans can be used to open new grocery stores or support existing ones to provide access to healthy food and a variety of raw fruits and vegetables in underserved communities (Section 2(c)).

Affordable Food Options: The bill requires eligible grocery stores to charge prices that are affordable at or below market values (Section 2(d)(1)(F)).

Employment Opportunities: Priority is given to entities that plan to hire workers who live within the underserved community they serve (Section 2(d)(2)(A)).

Educational Benefits: Priority is given to entities that provide classes or educational information regarding a healthful diet (Section 2(d)(2)(B)).

Support for Local Agriculture: Priority is given to entities that plan to source their food from local urban farms and gardens (Section 2(d)(2)(C)).

Flexible Financial Terms: Loans can be provided at or below market interest rates and may even be interest-free for up to 30 years (Section 2(f)(2)).

Loan Repayment Burdens: Program participants are required to establish a dedicated source of revenue to pay back their loans, with annual payments starting no later than one year after the loan is given (Section 2(f)(5) and 2(f)(6)).

Administrative Costs: Participants may be charged an administrative fee of up to 4 percent of the total loan amount (Section 2(g)).

Loan Limitations: Funds from the revolving fund cannot be used for the purpose of new construction (Section 2(c)(1)).

Debt Priority in Bankruptcy: In the event a participant goes bankrupt, the debt owed from the revolving fund is given precedence over other debts (Section 2(i)).