Food Deserts Act of 2016

This bill establishes a Department of Agriculture program to provide grants to states for revolving funds to support the establishment and operation of grocery stores in underserved communities.

An underserved community is a community that has: (1) limited access to affordable, healthy foods, including fresh fruits and vegetables, in grocery retail stores or farmer-to-consumer direct markets; and (2) a high rate of hunger or food insecurity or a high poverty rate.

States must use the funds to make loans to support grocery stores in underserved communities, including for:

• opening a store (excluding new construction),
• supporting an existing store,
• purchasing an existing store, or
• supporting a store located in a community that would be underserved without the store.

States may only make loans for qualified grocery stores that:

• emphasize unprocessed, healthful foods;
• provide staple foods and a variety of raw fruits and vegetables;
• have a plan to keep the foods in stock; and
• charge prices at or below municipal averages.

States must prioritize loan applications from entities that meet criteria, including:

• hiring workers from the underserved community,
• providing classes or educational information about a healthful diet,
• sourcing food from local urban farms and gardens,
• not selling alcohol or tobacco products, or
• demonstrating existing supply chain relationships or expertise in the grocery industry.