NM Economic Development Department: Healthy Food Financing Fund

The Healthy Food Financing Fund (HFFF) is an integral part of the governor’s Food Initiative designed to strengthen the local food system supply chain capacity and increase market opportunities for New Mexico farmers and agricultural producers, manufacturers, and food enterprises. It will directly support the capacity of small and mid-scale food and agricultural enterprises in our state’s food supply chain to grow, raise, process, aggregate, transport, and distribute local, culturally preferred foods to meet the current and increasing demand.

HFFF supports the intersection of economic development in New Mexico’s food/agricultural industry with increased food security for New Mexicans, and prioritizes projects demonstrating a focus on underserved communities.

The fund will:

• Stimulate investments for food and agricultural operations owned by and/or serving individuals who are from historically marginalized communities including communities of color, Tribal communities, under-served areas with low- and moderate-income populations, rural communities, urban food deserts, and businesses owned by Veterans, women, and socially disadvantaged individuals.
• Address financing obstacles and operating barriers for food aggregation/distribution operations, grocery stores, and other healthy food retail in lower income communities.

The FY 2023 New Mexico HFFF offers flexible financial assistance for projects directed to underserved communities in the form of competitive grants to eligible entities in the following four eligible project areas:

1. Grocery store infrastructure upgrades proposed to improve the availability and quality of healthy food.
2. Establishment/upgrades of farmers’ markets, farm stands, food cooperatives, community gardening projects, and mobile food markets.
3. Land-based food production and agricultural operations, controlled environment food production operations, and value-added operations.
4. Food aggregation, processing, and distribution projects, including hub distribution projects proposed to benefit local food producers and to improve food retailer access to fresh produce and healthy food.

See solicitation for details and definitions.

Amount: $400,000 is available for grants ranging from $20,000-$100,000 each.

Funds may be spent on:

• Site acquisition and preparation
• Equipment, fleet, supplies and furnishings
• Associated and relevant infrastructure
• Working capital for first-time inventory and start-up costs
• Business process/technology upgrades
• Brand development and marketing

(This is a non-exhaustive list.)

Note: Funding is expected to be fully spent by grantees by June 19, 2023.

Eligibility:

• Political subdivisions of the state
• Indian nations, Tribes, and pueblos
• For-profit business enterprises (including a corporation, limited liability company, sole proprietor, public benefit corporation, social enterprise)
• Cooperatively-owned businesses
• Tax-exempt nonprofit corporations
• Small farmers with gross cash farm income under $250,000 (commercial and noncommercial farms)

Link: https://edd.newmexico.gov/business-development/edd-programs-for-business/finance-development/healthy-food-financing-fund/

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