Providing Flexible and Equitable Capital to Healthy Food Entrepreneurs Across California
Supporting the efforts of healthy food retailers and enterprises to overcome the higher costs and barriers to entry they have traditionally faced in serving communities of color is vital. Creating businesses that provide equitable access to fresh and healthy food helps build inclusive and healthy communities, while also promoting economic development and generational wealth building.
The COVID-19 pandemic has further revealed how essential grocery stores, food suppliers, and their employees are to providing essential goods and services to communities. Yet they find themselves disproportionately impacted from both health and economic perspectives.
Through our California Community Grocers Fund, Capital Impact has tailored and flexible financial products and underwriting criteria designed specifically to meet the capital needs of small business owners and retailers working to increase access to healthy foods in disinvested communities.
Key features of the California Community Grocers Loan Fund:
- Amount: $750M – $3MM
- Term: 1-10 Years
- IO Period: Up to 36 months
- Am: up to 25 Years: Am not to go beyond the term of the lease (including tenant options) for leased properties
- Interest rate: Applicable Treasury rate plus 450 basis points, with a 5.5% floor
- Fee: 1.25% origination fee
- Collateral: Up to 100% LTV, leaseholds, and loans not secured by real estate will be considered
- DSCR: as low as 1.10x
- Guarantees: Anyone with at least a 20% interest in borrowing entity must provide a guarantee. We will rely more heavily on strength of the guarantor for deals without collateral
Borrowers must be a healthy food retail establishment in a designated USDA Food Desert. Start up businesses with less than 2 years of operation are not eligible. Restarts (2 years of positive operations prior to 2020) or additional locations for existing businesses can be considered. Eligible uses include:
- leasehold improvements
- working capital
Note: Restaurants are not eligible
Benefits of Working With Capital Impact Partners:
- Since 1990 we have provided $91 million in healthy food financing in California, and a total of $202 million to support healthy food businesses across the country
- With an office in Oakland, CA our on-the-ground team and local partnerships allow us to leverage our networks and resources for broader impact.
- As a mission-driven organization, we are committed to supporting projects that create social and economic justice.
- Our full-service team can serve as a single-loan source to deliver a streamlined loan process
STORIES OF IMPACT
Capital Impact has a long history of supporting food entrepreneurs and inclusive food systems Throughout California and nationally. Here are just a few of those stories.
Big Green Truck Delivers Healthy Bounty
Nourishing the Neighborhood for 20 Years
Amidst the economic turmoil facing Detroit, five brothers have continued to defy the odds for 20 years by expanding their grocery store…creating a healthy investment in the neighborhood and their neighbors.
Grocery Partners Supporting Their Communities During COVID-19
Many of our grocery partners doubled-down to serve their communities during the pandemic. Here is what common thread we uncovered that uniquely positions them to support communities in times of crisis and illustrates why we support them.