Food Deserts Act of 2017

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 or 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 grocery stores that meet requirements related to:

• emphasizing unprocessed, healthful foods;
• providing staple foods and a variety of raw fruits and vegetables;
• having a plan to keep the foods in stock;
• charging prices at or below market averages;
• meeting specified matching requirements using non-federal funds; and
• being qualified to operate a store or having partnerships with organizations that provide technical assistance.

States must prioritize loan applications from entities that meet criteria related to:

• 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.