Capital Impact Partners builds strong, vibrant communities for underserved people. A nonprofit Community Development Financial Institution, they deliver strategic financing, incubate new social ventures, and support capacity building to help ensure that low-to-moderate-income individuals have access to quality health care and education, healthy foods, affordable housing, and the opportunity to age independently.
CIP has deployed over $2.5B to serve nearly 5 million people and create more than 33,000 jobs nationwide in sectors critical to vibrant communities. Capital Impact Partners is a leading nonprofit lender to food projects across the country. Their $150 million in financing has led to the development of new stores, expansion of existing stores, and innovations such as mobile markets and food hubs that scale distribution efforts. This effort creates healthier communities while spurring economic growth and job creation.
The Michigan Good Food Fund (MGFF) program which was - in part - capitalized with HFFI dollars, also offers robust technical assistance. MGFF has fielded inquiries from over 220 food enterprises, has provided deep one-on-one technical assistance to 31 healthy food enterprises, and provided intensive 1-to-3-day boot-camp workshops to 17 businesses to help stabilize and scale operations. Over 390 jobs have been created and retained through support of the Michigan Good Food Fund.
HFFI Projects and Impacts – Key Points & Summaries
Michigan Good Food Fund, $3MM grant, $620,000 loan commitment
- Funded 27 loans and grants throughout the food system value chain totaling $11.3MM
- Created over 390 jobs
Diamond Place, $42MM project
- Will create an estimated 200 construction jobs and 150 permanent jobs from the retail tenants
- Will result in 115 affordable housing units
FEAST, $180,000 loan
Placita Olvera, $100,000 loan, $2MM project
Zilke Vegetable Farm, $30,000 loan
DIAMOND PLACE: The $42 million Diamond Place project in Grand Rapids, Michigan will bring together more than 100 units of affordable housing plus 22,000 square feet of retail space anchored by a community grocery store. Located in a USDA designated food desert, this project will create an anchor of healthy food access for area residents, who also experience high poverty rates. Michigan Good Food Fund provided a $3,645,600 loan through Capital Impact Partners in 2017 to support this project. Other project funding partners include JPMorgan Chase Bank, Cinnaire, Mercantile Bank, Michigan Economic Development Corp., Michigan State Housing Development Authority, Opportunity Resource Fund, and the City of Grand Rapids. Diamond Place will create an estimated 200 construction jobs and 150 permanent jobs from the retail tenants. The project will also result in 115 affordable housing units. Diamond Place construction is underway and is slated for completion in summer 2018.
FEAST: This innovative project will establish a new commercial kitchen and processing center for food entrepreneurs in Southeast Michigan. Located in the town of Inkser, it will be co-owned and serve as a homebase for three established companies in the area: Marcia’s Munchies, Scotty O’Hotty, and M&R Ventures which makes Bleaf all-natural chutneys and Poplettes, a popped sorghum snack. It will also be open to other area food entrepreneurs for processing, co-packing, recipe development, and cooperative buying. Michigan Good Food Fund provided a $180,000 loan through Northern Initiatives in 2017 to purchase equipment for this new processing center. Eastern Market Corporation and Michigan State University Product Center have been core partners bringing this project together and will remain engaged supporting its success.
PLACITA OLVERA: In recent years, Grand Rapid’s Grandville Avenue has received more than $40 million in investments as part of Viva La Avenida, a collaboration between the City of Grand Rapids, Roosevelt Neighborhood Association, and Habitat for Humanity that is redesigning this city corridor. Through the transformation of an old factory building, the new Placita Olvera project aims to become a destination for the community’s primarily Hispanic residents. It will feature a brewery, multiple restaurants, a business incubator space, and an outdoor farmers market, offering residents the only fresh food retail site in the neighborhood. In January 2018, Michigan Good Food Fund provided a $100,000 loan through Northern Initiatives to support owners Javier and Pablo Olvera in phase one of this $2 million project. The loan is providing working capital and support for architectural drawings and accounting services. The Olvera’s bring years of food retail experience to this project as owners of three Hispanic grocery stores, a taqueria, and a bakery in Grand Rapids.
ZILKE VEGETABLE FARM: Vicki and Tom Zilke have been providing fresh, healthy food at affordable prices since transitioning from previous careers to full-time farming in 2009 in the wake of the recession. What started as a five-acre homestead has over the years grown into a full-fledged 60-member CSA, farm stand, and regular presence at markets across Southeast Michigan. In January 2018, Michigan Good Food Fund provided a $30,000 loan through Northern Initiatives to Zilke Vegetable Farm that is supporting the Zilkes in transiting their farm stand to a year-round retail space plus kitchen facility to begin processing fruits and vegetables. The Zilke’s newest venture will increase access to fresh produce all-year long, while creating jobs and increasing opportunities for area farmers.
Source of money: HFFI CDFI-Financial Assistance Program; Fiscal Year(s): 2011, 2012, 2013, 2014, 2016
Fiscal Year 2011, $3MM, Fiscal Year 2012, $1MM, Fiscal Year 2013, $3MM, Fiscal Year 2014 $2MM, Fiscal Year 2016, $2.4MM