Nola fresh food_initiative

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New Orleans Fresh Food Retailers Initiative

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Nola fresh food_initiative

  1. 1. N E W O R LE A N S F R ES H F O O D R E T A I L E R I N I T I A T I V E The Fresh Food Retailer Initiative (FFRI) is a $7 million citywide program to encourage   New Orleans FFRI supermarket and grocery store development in low‐income, underserved communities    of Orleans Parish.   The FFRI program is partially funded by Disaster Community  Program Highlights   Development Block Grants (D‐CDBG) granted to the City of New Orleans by the  ● Forgivable loans and  Department of Housing and Urban Development (HUD) and the State of Louisiana.    interest‐bearing loans for  By providing financing for capital, real estate and related expenses, the program will  new and existing retail  enable operators to open, renovate, or expand retail outlets that sell fresh fruits and  outlets    vegetables. FFRI will provide underserved neighborhoods in New Orleans with better  ● Flexible funding for pre‐ access to fresh foods, quality employment opportunities, and opportunities for  development, development  revitalization. The program is made possible by the City of New Orleans and  and initial operations costs    administered by Hope Enterprise Corporation in partnership with The Food Trust.  ● Available to for‐profit and  non‐profit markets FINANCING PRODUCTS The FFRI Program provides forgivable and interest‐bearing loans to support grocery      How To Apply development.  Eligible activities include: pre‐development, site assembly and  improvement, construction and rehabilitation, equipment installation and upgrades, staff  To find out if you are eligible  training, security, and start‐up inventory and working capital. The total amount of D‐ for the New Orleans FFRI,  download the application  CDBG FFRI funding awarded, per store, may not exceed $1,000,000, of which the total  from www.hope‐ec.org.  portion of forgivable loans may not exceed $500,000.      More funding may be supplied in the form of market‐rate interest bearing loans from  Complete the eligibility  private lenders or New Markets Tax Credits.   application and submit your    form with attachments by e‐ See the reverse for information about borrower requirements and loan terms.  mail, fax or mail to:   ELIGIBLE APPLICANTS Hope Enterprise Corporation  1726 O.C. Haley Blvd.  New Orleans, LA 70113  Forgivable and interest‐bearing loans are available to supermarkets or other retail  FAX: 504‐527‐0691  grocery outlets committed to expanding the healthy food offerings in low‐ or moderate‐ E‐MAIL: ffri@hope‐ec.org  income, underserved neighborhoods. An underserved neighborhood is defined as an    area of below average supermarket density or grocery sales.   Have questions about the    application process?  Applicants must plan to either: open a self‐service supermarket or other grocery retail    outlet primarily selling fresh produce, seafood, meat, dairy, and other groceries;  Call 504‐585‐2860 or e‐mail  renovate and substantially improve a store’s ability to stock and sell a variety of fresh  ffri@hope‐ec.org for  fruits and vegetables; or develop a real estate project that will lease space to a grocery  assistance. retail tenant.   Loan Underwriter,  Service and   Food Access  Public Partner:  Compliance Partner:  Partner:  Funding provided in part by D‐CDBG. 
  2. 2. PROJECT REQUIREMENTS     New Orleans Project Location: Low‐ to Moderate‐Income (LMI) Census Tract; below average food  FFRI Applicants:   market density/sales.  Projects in other locations significantly serving LMI areas may also    be considered.    All applicants should refer to  Dedicated Shelf Space: Significant shelf space must be dedicated to the sale of fresh fruit  the full Program Guidelines  and vegetables. (Suggested minimum: 15% of the current/future store shelf space or 24  and Eligibility Application,  available at   linear feet of shelf space, whichever is greater.)    www.hope‐ec.org.  Financing Uses: Both FFRI forgivable loans and low‐interest loans may be used for:    ●   Pre‐development  These terms represent  ●   Site assembly and improvement  general guidelines.  Exceptions may be  ●   Construction and rehabilitation  considered on a case‐by‐case  ●   Equipment  basis. All projects that fit the  ●   Staff training  general mission of the Fresh  ●   Security  Food Retailer Initiative are  ●   Inventory and working capital  encouraged to apply.      Environmental Review: CDBG Environmental Review will be conducted by the City of New  For more information:  Orleans before disbursement of loan. Since the FFRI program is partially funded by    Disaster Community Development Block Grants (D‐CDBG), all projects considered must be  Call 504‐585‐2860 or  environmentally reviewed and classified as Exempt, Categorically Excluded, in need of an  ffri@hope‐ec.org for  Environmental Assessment (EA), or in need of an Environmental Impact Statement (EIS).  assistance. FINANCIAL ELIGIBILITY REQUIREMENTS ●   Project meets general program eligibility criteria  ●   Beacon credit score > 550 for all principals and guarantors   ●   Projected debt coverage ratio of 1.2x, defined as EBITDA / (interest payments + current maturities)  ●   Personal guarantee, where applicable  ●   No prior history of bankruptcy at any time with the business nor recent bankruptcy (within the last seven years)   for the principals  ●   With security for the loan calculated at the lower of cost or market, no LTV ratios will be accepted at above 85%   ●   Minimum combined grocery store management experience of the principals is to be 5 years, with a preference   for 8 or more years LOAN UNDERWRITING REQUIREMENTS ●   A properly completed business loan application (only required following eligibility determination)  ●   Current financial statements for the borrower and all co‐borrowers and guarantors  ●   A spread of the business’s financial statements  ●   A credit analysis LOAN RATES AND TERMS ●   Rates will generally range from the Wall Street Journal (WSJ) Prime Rate to the WSJ Prime Rate plus 3%.  ●   Length of the loan term will depend on the financing needs of the borrower (projected cash flow and   activities/items being financed).  
  3. 3. PROGRAM GUIDELINES    S E C T I O N I: I N T R O D U C T I O N Statement of Purpose The Fresh Food Retailer Initiative (FFRI) is an innovative new financing program created by the City of New Orleans to increase the number of supermarkets, grocery stores, and other fresh food markets in low‐income, underserved communities across Orleans Parish.  The intent of the program is to enable operators to open, renovate, or expand retail outlets that sell fresh fruits and vegetables.   Hope Enterprise Corporation (HOPE) and The Food Trust are partners in administering this citywide program, which meets the financing needs of food markets in communities where infrastructure costs and credit needs cannot be filled solely by conventional financial institutions.  The City has provided $7 million in Disaster Community Development Block Grant (D‐CDBG) funds toward the program which will be matched 1:1 by HOPE.  Under the FFRI program, HOPE will provide a combination of forgivable and interest‐bearing loans for predevelopment, site assembly and improvement, construction and rehabilitation, equipment installation and upgrades, staff training, security, and inventory and working capital for start‐up costs.  The Food Trust will evaluate applications to determine eligibility for the program.    The initiative was created in response to the lack of fresh, healthy foods in many New Orleans neighborhoods, a problem exacerbated by Hurricane Katrina, and growing evidence that supermarket access reduces the risk of developing diet‐related diseases such as obesity, heart disease and diabetes.  The Fresh Food Retailer Initiative will directly benefit low and moderate income residents in New Orleans by providing healthy food access, creating jobs, and revitalizing neighborhoods.  Hope Enterprise Corporation (HOPE) is a Community Development Financial Institution (CDFI) dedicated to strengthening communities, building assets and improving lives in economically distressed areas of the Mid South by providing access to high‐quality financial products and related services.  Since 1994, HOPE has generated over $1.4 billion in financing for entrepreneurs, homebuyers and community development projects and directly benefited more than 75,000 individuals.  Founded in 1992, The Food Trust is a non‐profit organization dedicated to making affordable, healthy food available to all.  The Food Trust was a key partner of the Fresh Food Financing Initiative in Pennsylvania, a statewide program that has helped to open 88 stores in underserved areas.   S E C T I O N II: ELIGIBILITY A. Eligible Applicants Types of EntitiesAn applicant may have a for‐profit or non‐profit status and may be, but is not limited to, one of the following:  national chain, regional grocery chain, singular grocery retail outlet, and smaller neighborhood or cooperative food store.  PurposeIn order to be eligible to participate in FFRI, the applicant must demonstrate one of the following:   1) plan to open or renovate a self‐service supermarket or other grocery retail outlet primarily selling affordable  fresh produce, seafood, meat, dairy, and other groceries; or  Loan Underwriter,  Service and   Food Access  Public Partner:  Compliance Partner:  Partner:  Funding provided in part by D‐CDBG. 
  4. 4.   2) improve a store’s ability to stock and sell a variety of fresh fruits and vegetables, where fresh produce carrying  capacity had previously been limited or nonexistent; or   3) develop a real estate project that will lease space to a grocery retail tenant.  In this case, the applicant must  have a signed lease with a fresh food retail operator. Projects with multi‐tenant uses may be eligible if the  development project is funded proportionately to grocery retailer square footage, allowing the FFRI award to  focus only on the grocery retail tenant portion.   LocationThe applicant’s business must be located:   within Orleans Parish   in a location that meets Low‐ or Moderate‐ Income (LMI) criteria (described below)  The applicant’s business site will also be assessed to determine whether it is within an underserved area (defined as an area of below average supermarket density or below average grocery sales).   Low Moderate Income (LMI) CriterionA project will be deemed to meet the LMI criterion if is within a census tract OR service area where at least 51% of persons or households are low to moderate income.    A project may also be eligible if it is satisfactorily shown to create or retain permanent jobs, at least 51 percent of which (computed on a full‐time equivalent basis) will be made available to or held by LMI persons.    Dedicated Shelf SpaceThe applicant must demonstrate that significant shelf space (suggested minimum of either 15 percent of the current or future store shelf space or 24 linear feet of shelf space, whichever is greater) is dedicated to the sale of fresh fruit and vegetables.  Such a standard establishes a meaningful commitment to sell fresh produce and other healthy foods.  Ineligible Applicants 1) Applicants that fail to demonstrate a commitment to offer fresh healthy foods in the judgment of the City,  HOPE, and The Food Trust.  2) Large department stores that specialize in many different types of goods, of which groceries are only one  department.  3) Restaurants, cafes, or bakeries.  4) Pharmacies with grocery sections.  5) Businesses with alcohol or tobacco retail sales as the primary source of revenue.  6) Public entities.  B. Eligible Activities Fund UsageBoth FFRI forgivable loans and interest‐bearing loans may be used for:   1) Pre‐Development: to pay for the early costs associated with project feasibility including professional fees (e.g.  architectural, engineering, etc.), market studies, appraisals, and deposits on land and buildings.  2) Site Assembly and Improvement: to pay for acquisition, demolition, environmental remediation, unstable  foundations and soil conditions, and other costs associated with site and infrastructure improvement.  3) Construction and Rehabilitation: to construct, rehabilitate, or expand the interior and/or exterior of the retail  space.   Page 2 of 7
  5. 5. 4) Equipment: to install or upgrade equipment, machinery, furnishings or interior fit‐out, especially as necessary to  increase the inventory and sale of fresh fruit and vegetables.   5) Staff Training: to pay for training new or existing staff, especially in such areas as safe food handling techniques,  sanitation, and management of fresh fruits and vegetables.   6) Security: to pay for security staff, security training, and security related equipment and site design features to  create a safe environment in a neighborhood setting.   7) Inventory and Working Capital: to cover first‐time inventory or other working capital expenses necessary to the  sale of fresh fruit and vegetables and the initial operations of the business.  Ineligible ActivitiesBorrowers may not use funds for:    1) The sole purpose of refinancing existing debt.  2) Payment of any tax arrearages, government fines or penalties.   3) Political or religious activities.   4) Buying out any stockholder or equity holder in the borrower’s business.  5) Buying out or reimbursing any family member.  6) Purchasing instruments or investments for the sole purpose of a return on investment.  7) All other activities prohibited in the CDBG regulations Part 570.  C. Application Process and Evaluation In order to determine eligibility, the applicant must complete a FFRI Eligibility Application.  The Food Trust will review each eligibility application to determine whether the proposed project meets the criteria listed above.  The Food Trust will additionally consider the following:   1) Degree of benefit to underserved populations: The project has a measureable impact on the level of  affordable fresh foods provided to low‐ and moderate‐income residents of the area that the project serves.    2) Promotion of fresh fruits and vegetables: The Applicant demonstrates a commitment to promoting the sale  of fresh fruits and vegetables, e.g. the project details strategies to promote fresh produce sales beyond simple  availability, such as product placement, marketing, providing recipes and demonstrations, and outreach.  3) Organizational experience and capacity: The Applicant demonstrates the capacity to implement and sustain  the project, e.g. through a sound financial/business plan and relevant experience in fresh food retail.  4) Project Need: The project requires an investment of public funding to move forward, to create impact, or to  be competitive with similar projects in the region.   5) Community Support: The project demonstrates community support and/or partnerships as evaluated by  Letters of Support from community‐based organizations and community groups.  6) Consistency with “Green Community” Objectives: The project incorporates environmentally responsible  practices into the project plan, such as integrated design, site improvements, water conservation, energy  efficiency, and use of materials beneficial to the environment.  7) Market and Demographic Evaluation:  The Applicant will examine the quality and accessibility of any local  competition, site geography, and demographic profile of the Census tract in which the site is located.  8) Consistency with Plans:  The Applicant will coordinate with the City of New Orleans Master Plans, local  community plans and community development programs.  9) Land Use and Urban Design:  The project will adhere to sound land use and urban design principles.  If an applicant is deemed eligible, the applicant will receive confirmation along with an invitation to complete a business loan application from HOPE.  See Section VI, Program Inquiries, for additional information.    Page 3 of 7
  6. 6. S E C T I O N III: FINANCING A. Loan Purpose Loans from the program will fund costs associated with pre‐development, site assembly and improvement, construction and rehabilitation, equipment installation and upgrades, staff training, security, and inventory and working capital for initial start‐up costs.   Borrowers will be required to have a minimum of 10 percent cash equity at risk in addition to the financing offered in this program.  B. General Terms and Conditions The total amount of D‐CDBG FFRI funding awarded, for forgivable and interest‐bearing loans combined, may not exceed $1,000,000 per store.  More funding may be supplied on a case‐by‐case basis in the form of market‐rate interest bearing loans from private lenders or New Markets Tax Credits.   C. Financing Criteria After the Applicant and the Applicant’s business have been found to meet the minimum program eligibility criteria, the Applicant will be asked to submit a business loan application to HOPE.  Applicants will be evaluated by HOPE’s Credit Analysis Department to determine their ability to service their debt, implement their business plan, and repay the loan in accordance with program requirements.  In order to be eligible to receive financing under the FFRI Program, the Applicant and the Applicant’s business must satisfy the following minimum standard underwriting criteria, unless mitigating circumstances are present and documented in the loan file:  1) Determination that the project meets general program eligibility criteria  2) Beacon credit score > 550 for all principals and guarantors   3) Projected debt coverage ratio of 1.2x (defined as EBITDA / (interest payments + current maturities)  4) Personal guarantee, where applicable.  5) No prior history of bankruptcy at anytime with the business nor recent (within the last seven years) for the  principals  6) With security for the loan calculated at the lower of cost or market, no LTV ratios will be accepted at above 85%   7) Minimum combined grocery store management experience of the principals is to be 5 years, with a preference  for 8 or more years   Forgivable LoansForgivable loans of up to $500,000 per store may be awarded for designated project activities pursuant to the terms listed below:  1) Applicants must submit a narrative that demonstrates the need for a forgivable loan.  2) The project must meet both the income criterion and underserved criterion (as detailed in the Program Eligibility  Criteria).  3) Forgivable loans will only be considered in the event the business’s project cash flow with loan repayment using  standard pricing and amortization would be expected to be below 1.2x.  Exceptions will be made for businesses  with projected cash flows that exceed 1.2x that demonstrate that their project has an exceptional opportunity  for impact in an underserved area.    4) The forgivable loan can comprise no more than 20% of the total financing needs of the borrower.  5) Forgivable loans, if awarded, will be provided at a 0% rate of interest and forgiven over a period of five years, in  an amount of one‐fifth (1/5) of the forgivable loan amount per year.  Page 4 of 7
  7. 7.  Note:  Applicants receiving a forgivable loan will be evaluated on a yearly basis to determine if the applicant is meeting the goals and objectives of the FFRI program.  If the applicant is found not to be in line with the goals and objectives of the FFRI program (i.e., not providing fresh fruits and vegetables as outlined in the Program Eligibility Criteria), the remaining balance of the forgivable loan must be repaid.   Interest-bearing LoansInterest rates for the FFRI Program will be risk based adjusted and determined by HOPE during the underwriting and HOPE Credit Committee approval process.  Generally, however, interest rates for FFRI Program loans will range from the Wall Street Journal (WSJ) Prime Rate to the WSJ Prime Rate plus 3%.  The length of the loan term will depend on the financing needs of the borrower (projected cash flow and activities/items being financed).    Other Financing Criteria 1) The total amount of CDBG FFRI Program funds awarded for forgivable and interest‐bearing loans combined may  not exceed $1,000,000 per store.  2) Applicants will be required to provide a minimum of 10% cash equity.  3) To the extent practicable, FFRI Program funds will be disbursed on a pro rata basis with other leveraged finances  provided to the project being spent first or before FFRI Program funds.  4) Default covenants are required for selling the business, selling or diluting majority ownership, or selling assets  purchased with FFRI funds.  5) Applicants will be responsible for paying the legal and assessor fees (such as survey costs, appraisal fees, and  filing fees) normally incurred with the underwriting and financing of commercial loans.  D. Application Evaluation and Approval Process Business Loan ApplicationAfter an Applicant has completed the preliminary eligibility application stage, and after the Applicant and the Applicant’s business have been found to meet the minimum program eligibility criteria, the Applicant will be asked to submit a business loan application to HOPE.  The loan application is also available on www.hope‐ec.org.  Applications will be approved on an as‐needed basis until all funds are committed to projects.   Applicants will be evaluated by HOPE’s Credit Analysis Department to determine their ability to service their debt, implement their business plan, and repay the loan in accordance with program requirements.  HOPE Credit Committee / City of New Orleans ReviewOnce the loan officer is satisfied that a loan request complies with general policy and the requirements for an acceptable loan, the loan has been structured properly, and all necessary credit information has been obtained, the loan must go through the formal approval process at HOPE.   All FFRI Program loans require HOPE Credit Committee or delegated lending approval.  The HOPE Credit Committee is responsible for approval of credit terms, pricing, and credit rating, and any policy and/or documentation exceptions.  Additionally, following review by The Food Trust and HOPE, the City of New Orleans will review recommendations and approve, request modification of, or may deny applications for funding. E. Loan Closing Upon approval of an application by HOPE, a loan agreement and commitment letter will be issued to the applicant explaining the terms and conditions of the loan. The commitment letter must be signed and returned within 15 days of the date of the commitment letter or the offer may be withdrawn.    Page 5 of 7
  8. 8. F. Reporting Requirements and Record Keeping and Nonperformance HOPE will enter into a loan agreement with all borrowers.  Loan proceeds are subject to audit by HOPE.  Borrowers will be responsible for complying with all applicable Disaster Community Development Block Grant (D‐CDBG) regulations and for complying with the City’s Disadvantaged Business Enterprise (DBE) program.  Borrowers will be expected to provide HOPE with evidence of compliance with CDBG regulations and the DBE program.  Additionally, borrowers will be required to submit CPA‐audited fiscal year‐end financial statements, annual federal tax returns for the borrower and all guarantors, quarterly CPA prepared financial statements and annual personal financial statements for all guarantors.  Additional financial and/or compliance documentation may be required.   S E C T I O N IV: CDBG E N V I R O N M E N T A L R E V I E W A. Overview The FFRI program is partially funded by Disaster Community Development Block Grants (D‐CDBG) granted to the City of New Orleans by the Department of Housing and Urban Development (HUD) and the State of Louisiana. Therefore, all projects being reviewed for funding through the FFRI program are subject to all NEPA regulations and thus must be environmentally reviewed and classified as Exempt, Categorically Excluded, in need of an Environmental Assessment (EA), or in need of an Environmental Impact Statement (EIS).  In some cases, where contaminated soil is involved, further soil investigation is also required.  Even if CDBG is funding only a portion of the project, the entire project is subject to comply with environmental regulations.  Before a loan agreement can be executed for FFRI funding, an environmental review must be completed.   A change in your project scope may require a supplemental or new environmental review to be performed The City of New Orleans will work closely with the FFRI program administrators so that when a loan application is approved for funding, the City will begin the environmental process.  The length of time of this review can range from two weeks to several months depending on the activities associated with the project.  A FFRI loan agreement can only be executed upon completion of the environmental review process.  B. Choice-Limiting Actions Once an application for FFRI funding is submitted, a project is considered a federal undertaking, and therefore the applicant should be careful to avoid any choice‐limiting actions that may hinder potential financing.  Generally, choice‐limiting actions consist of making project investments before all necessary environmental clearances are obtained.  Choice‐limiting actions are defined as any activity that would have an adverse environmental impact (e.g. demolition, dredging, filling, excavating) or limit the choice of reasonable alternatives, and include the execution of legally binding agreements (i.e. loan agreements, construction contracts, etc), acquisition, leasing, construction, demolition of buildings, or rehabilitation or reconstruction of buildings, regardless of funding source.   The concept of prohibiting “choice‐limiting” actions is to prevent the developer from investing in a project before all necessary environmental clearances are obtained. Market studies, environmental studies, plan development, engineering or design costs, inspections and tests are not considered choice‐limiting actions.   Failure to comply with the prohibition against committing funds or taking physical action (using either FFRI funds or non‐FFRI funds) before the completion of the environmental review process could result in loss of FFRI assistance, cancellation of the project, reimbursement by the developer/owner to FFRI for the amount expended, or suspension of the disbursement of funds for the affected activity.  Page 6 of 7
  9. 9. S E C T I O N V: D I S A D V A N T A G E D B U S I N E S S E N T E R P R I S E (DBE) P R O G R A M The City of New Orleans maintains a listing of businesses that have been certified by the City as a Disadvantaged Business Enterprise (DBE), available at:   https://neworleans.dbesystem.com/FrontEnd/VendorSearchPublic.asp?TN=neworleans&XID=8965.    All borrowers must make a demonstrated best effort at utilizing certified DBEs in all subcontracts and procurements.  For the purposes of the FFRI program, “demonstrated best efforts” is defined as soliciting, in writing, at least 3 bids or proposals from entities participating in the City’s DBE Program.  Documentation of this solicitation is required.   S E C T I O N VI: P R O G R A M I N Q U I R I E S Visit www.hope‐ec.org for program information and to download the Eligibility Application.  All program inquiries should be addressed directly to HOPE.    Contact information:  Hope Enterprise Corporation  1726 O.C. Haley Blvd.   New Orleans, LA, 70113  (t) 504‐585‐2860  (f) 504‐527‐0691  ffri@hope‐ec.org   www.hope‐ec.org  Page 7 of 7
  10. 10. F R E Q U E N T L Y A S K E D Q U E S T I O N S (FAQ)  PROGRAM OVERVIEW What is the Fresh Food Retailer Initiative?   The Fresh Food Retailer Initiative (FFRI) is a $7 million citywide program to encourage supermarket/grocery  store development in low‐income, underserved communities of Orleans Parish.  By providing financing for  capital, real estate and related expenses, the program will enable vendors to open, renovate, or expand retail  outlets that sell fresh fruits and vegetables.  FFRI will provide traditionally underserved neighborhoods in New  Orleans with better access to fresh foods, quality employment opportunities, and opportunities for  revitalization. The program is supported by the City of New Orleans and administered by Hope Enterprise  Corporation (HOPE) in partnership with The Food Trust (TFT).  The FFRI program is partially funded by Disaster  Community Block Grants (D‐CDBG).  PROJECT ELIGIBILITY What stores are eligible?   Eligible stores should be located or plan to locate in a site within Orleans Parish that will benefit a low‐ or  moderate‐ income (LMI) community. A project can benefit an LMI community by locating within an LMI census  tract/trade area or by providing/retaining jobs for LMI individuals.  In addition, the site should be located in an  underserved area, defined as an area of below average supermarket density or grocery sales. Finally, the store  must demonstrate a commitment to providing fresh fruits and vegetables (suggested shelf space: 15% of store  or 24 linear feet of shelf space, whichever is greater). Additional information on eligibility can be found in the  Program Guidelines.   Can an existing grocery store apply?   An existing grocery retail outlet may apply if it plans to substantially improve the store’s ability to stock and  sell a variety of non‐prepared foods, or food products intended for home preparation, consumption and  utilization.    Is there a minimum store size?  There is no minimum store size, as long as the store demonstrates a commitment to providing fresh fruits and  vegetables and meets other program guidelines.  Also, it is suggested that a significant section of the store be  dedicated to the sale of fresh produce.  What is the environmental review process?   Since the FFRI program is partially funded by Disaster Community Block Grants (D‐CDBG), all projects  considered must be environmentally reviewed and classified as Exempt, Categorically Excluded, in need of an  Environmental Assessment (EA), or in need of an Environmental Impact Statement (EIS).  A loan agreement  can ONLY be executed upon completion of the environmental review process, which will range from two  weeks to several months, depending on the activities associated with the project and if any actions may have  an adverse environmental impact.  The City of New Orleans will lead this review process.  Once an application  for FFRI funding is submitted, a project is considered a federal undertaking, and the applicant should be  careful to avoid any choice‐limiting actions that may hinder potential financing.    Loan Underwriter,  Service and   Food Access  Public Partner:  Compliance Partner:  Partner:  Funding provided in part by D‐CDBG.
  11. 11. TOP TEN TIPS FOR APPLICANTS  1) Thoroughly review the program guidelines to make sure that you understand what activities are eligible and  ineligible for funding.    2) To assist us in conducting a speedy analysis, make sure to fully complete the Eligibility Application and attach all  additional documentation before submitting it.  Incomplete applications will delay the assessment.   3) When writing your narrative, please include any information that you believe would demonstrate that your  project is consistent with the FFRI’s goals. (The goals are provided in the Program Guidelines.)    4) When submitting photographs or layout designs, please show views of the following: the produce area, the  exterior of the store/site, the surrounding neighborhood, etc.  Photographs and/or layout plan should include  shelf space allocation.  If applying for a new project, you can also submit interior photos of another food retail  store that your business already owns.  Please include the date of the photo and description of the view, and if  submitted as an electronic attachment, in the image file name (e.g. “32mainstreet_producearea_03152011.jpg”)     5) DO NOT submit the Business Loan Application unless and until: 1) You are notified that you are eligible and 2)  HOPE invites you to complete the financing step.     6) Incomplete Business Loan Applications will not be processed by HOPE until all required information has been  received.  You will be assigned a HOPE Loan Officer who will work with you to make sure your Business Loan  Application is complete.    7) Even if you are approved for financing, DO NOT spend a dime and avoid any “choice‐limiting actions” (listed in  the Program Guidelines) until the City has completed and notified you of the results of your environmental  review.   8) Keep copies of all of your submission materials and any written communication concerning your application.   9) Apply early!  Applications are accepted and reviewed on a rolling basis.    10) Please feel free to contact us at ffri@hope‐ec.org if you have any questions about the program.  Please also  contact us in the event that:  a.   You would like to set up an informational call in order to tell us about your specific project and get some  general feedback to guide you in your application.    b. You do not receive confirmation that your application and/or any additional  documentation has been received.  c. You have already submitted your application, but there are changes to your project.  Loan Underwriter,  Service and   Food Access  Public Partner:  Compliance Partner:  Partner:  Funding provided in part by D‐CDBG. 
  12. 12. ELIGIBILITY APPLICATION New Orleans Fresh Food Retailer InitiativeApplying for financing from the New Orleans Fresh Food Retailer Initiative is a two step process. First, the applicant must complete this EligibilityApplication to determine whether the proposed site is consistent with the goals and objectives of the program. Once a project’s eligibility isdetermined, the applicant will receive a letter disclosing its eligibility status and, where appropriate, an invitation to apply for financing. The applicantmust then complete the Business Loan Application provided by Hope Enterprise Corporation (HOPE).All applicants are encouraged to review the New Orleans Fresh Food Retailer Initiative Program Guidelines found on www.hope-ec.org.I. APPLICANT INFORMATION Legal Name of Individual: Tax ID or SSN: Application Date: Address: City: State: Zip: Email: Phone: Cell Phone: Fax:II. BUSINESS INFORMATION Legal Name of Business: Tax ID or SSN: Formation Date: Type of Business:  Single Food Market or Supermarket  Real Estate Developer  Supermarket Chain ( 2 to 5 Stores)  Other___________________  Supermarket Chain (> 5 Stores)  Non Profit Corporation  For Profit Corporation  Limited Partnership  Cooperative  General Partnership  Limited Liability Company  Sole Proprietorship  Other: ________________ Business Address: Phone: Fax: City: State: Zip: Current No. of Employees: ________ Proposed Additional No. of Employees: ________ (after Investment) Part-Time: ________ Full-Time: ________ Part-Time: ________ Full-Time: ________III. SITE ELIGIBILITY INFORMATION Full Street Address of Food Market (if different from above, no P.O. boxes): Total size of Food Market Retail Space Proposed: ___________________square feet City: State: Zip: Project Description (check all that apply): Status of Project Site Control:  New Construction  Expansion of Operating Store  Currently Owned  Under Agreement  New Store in Existing Building  Renovation of Operating Store  Applicant Does Not Have  Other  Redevelopment of Dark Store  Equipment Site Control If Expansion, current size of existing store: _________________square feet If Other, please specify: _________________ additional square footage proposed: _________________square feet Estimated % of square footage intended to sell fresh fruit and vegetables: ______%
  13. 13. NEW ORLEANS FRESH FOOD RETAILER INITIATIVE ELIGIBILITY APPLICATIONIV. ADDITIONAL PROJECT CHARACTERISTICS  Store accepts benefits from state and federal aid programs:  SNAP  WIC  Applicant will comply with the city’s Disadvantaged Business Enterprise (DBE) Program. For more information, see Program Guidelines.  The project makes a positive impact on the local economy. Explain: ___________________________________________________________________________________________________________ __________________________________________________________________________________________________________________  The market will carry food items produced locally. Explain: ___________________________________________________________________________________________________________ __________________________________________________________________________________________________________________  The project incorporates energy efficiency and green building principles. Explain: ___________________________________________________________________________________________________________ __________________________________________________________________________________________________________________V. TRADE AREA ANALYSIS At minimum, list the 3 closest supermarkets or grocery stores (competitors) to your project. Please attach additional pages as necessary. Name of Supermarket Street Address City & State Zip Code DistanceVI. FINANCING INFORMATION Total Project Cost (attach preliminary budget if available): Total Amount Requested: Applicant proposes to use the award for the following designated activities:  Site Assembly and Improvement  Construction and Rehabilitation  Predevelopment  Acquisition  New Construction  Equipment  Demolition  Rehabilitation  Staff Training  Environmental Remediation  Expansion  Security  Unstable Foundations and Soil Conditions  Other Construction and Rehabilitation Activities  Inventory  Other Site and Infrastructure Improvements Explain: ______________________________  Working Capital Explain: ______________________________ _____________________________________ ______________________________________VII. FINANCING SOURCES Funding Sources for costs (Include your request and any other sources that have been identified, e.g. city, nonprofit, or foundation funding): Source of Funding Amount Status (Commitment, Requested, etc.) FFRI – Forgivable Loan $ FFRI – Low-Interest Loan $ Owner’s Equity $ Other _________________ $ Other _________________ $ Other _________________ $ Other _________________ $ Other ________________ $ Total Sources of Funding: $ Page 2 of 4 Program is made possible by the City of New Orleans and funded in part by D-CDBG.
  14. 14. NEW ORLEANS FRESH FOOD RETAILER INITIATIVE ELIGIBILITY APPLICATIONVIII. ENVIRONMENTAL REVIEW Has a NEPA (National Environmental Policy Act) review been conducted for the project? If yes, explain.  Yes  No Explain: ___________________________________________________________________________________________________________ __________________________________________________________________________________________________________________ Have any contracts for the project been executed? If so, please list the type of agreement, vendor and/or consultant name, the execution date, the expiration date, and a brief description of the services to be provided.  Yes  No Explain: ___________________________________________________________________________________________________________ __________________________________________________________________________________________________________________IX. MANAGEMENT INFORMATION Management (includes proprietor, partners, directors, all holders of outstanding stock): 100% of ownership must be shown; use a separate sheet if necessary. % U.S. Name, SSN, and Position Title Complete Address Race* Sex* Owned Citizen* HOPE encourages minority- and women-owned businesses to apply for funding. It should be noted that this data is optional and collected forstatistical purposes only; it has no bearing on the decision to approve or decline an application.Please answer the following questions:1. Are you or your business involved in any pending lawsuits? (If yes, attach explanation.) : Yes  No2. Have your or any officer of your company been involved in bankruptcy or insolvency proceedings? (If yes, please provide details.) Yes  No3. How or where did you hear about this program? _____________________________________________________________________________X. ADDITIONAL DOCUMENTS: The following exhibits must be completed. Project Description/Need for Funding: Please submit a brief narrative that describes the project and how it will impact the community. Includean explanation of the costs associated with the proposed project (e.g. land assembly, security, predevelopment costs, etc.) and how you intend touse the requested funding. Photographs: Please provide interior and exterior photographs of your store. If the store is not yet in existence, please provide photographs ofthe site and a copy of the layout plan, including shelf space allocation. Support for the program: If applicable, please provide the names, business phone numbers and/or business emails of any localState/City/County government offices/individuals and local community organizations that are in support of this project.Tax Clearance Form: Please complete the Tax Clearance Form at the end of this application. Page 3 of 4 Program is made possible by the City of New Orleans and funded in part by D-CDBG.
  15. 15. NEW ORLEANS FRESH FOOD RETAILER INITIATIVE ELIGIBILITY APPLICATIONThe New Orleans Fresh Food Retailer Initiative is an innovative financing program, created in partnership with the City of New Orleans, HopeEnterprise Corporation (HOPE), and The Food Trust, designed to increase the number of healthy food markets in underserved communitiesacross Orleans Parish. HOPE is a non-profit Community Development Financial Institution (CDFI) dedicated to creating pathways of opportunity forlow income people and communities by providing loans. The Food Trust is a nationally recognized non-profit with a mission of promoting access tohealthy foods. The Food Trust will help to evaluate applications to determine eligibility for the program.By signing below, I acknowledge that any application information submitted will be shared with the City of New Orleans as part of the eligibility andfinancing process, but will not be shared publicly.Program inquiries should be addressed to Hope Enterprise Corporation. For further information, contact: Hope Enterprise Corporation, 1726 O.C.Haley Blvd., New Orleans, LA, 70113. Tel: 504-585-2860. Fax: 504-527-0691. Email: ffri@hope-ec.org. Email your completed applicationwith exhibits to ffri@hope-ec.org. Applications can also faxed or mailed as paper copies. CERTIFICATION AND AUTHORIZATIONI hereby certify on behalf of , the applicant organization, that the information submitted in this applicationand/or its attachments is a true and accurate representation of the information requested by the Hope Enterprise Corporation, its successors,assigns, agents and/or participants, that no relevant information has been deleted, modified in any way, or withheld and that Applicant understandsthat it has a continuing obligation to amend and/or supplement the information provided in this application if any of the material facts representedherein change prior to closing. I also authorize Hope Enterprise Corporation, its successors, assigns, agents and/or participants to obtaininformation related to this loan request, including but not limited to, relevant financial or historical information about the applicant, its principals oraffiliates. ____________BORROWER/APPLICANT: _____________AUTHORIZED SIGNATORY__________________________________ ______________________________TITLE DATE Page 4 of 4 Program is made possible by the City of New Orleans and funded in part by D-CDBG.
  16. 16. CITY OF NEW ORLEANS FOR CITY OF NEW ORLEANS USE ONLY TRACKING NO. RECEIVED BY FINANCE DEPT. ON:________________________________DEPARTMENT OF FINANCE FROM: TO REVENUE ON: PHONE BY:TAX CLEARANCE AUTHORIZATION TO TREASURY ON: TO DIRECTOR ON: BY: BY: COMPLETED & RECEIVED BY DEPT. FINANCE ON:1300 Perdido St., Room4W07, New Orleans, LA 70112, Fax (504) 658-1570 DEPT. OF LAW RECEIVED ON: BY:According to Section 2-8 of the Code of the City of New Orleans, Louisiana 1995, the City may not enterinto or make payments under a contract, grant or cooper ative end eavor agree ment with an y person,corporation, or entity delinquent in City taxes. This form supplies the needed tax clearance. Thisclearance is issued without prejudice to any tax liabilities discovered by audit. Please refer to the instruction on the back of this formTaxpayer InformationTYPE OF BUSINESS:BUSINESS NAME: REAL ESTATE TAX NUMBER:OWNER’S NAME:BUSINESS ADDRESS: PERSONAL PROPERTY TAX NUMBER:MAILING ADDRESS:CONTACT TELEPHONE: SALES TAX/OCCUPATIONAL LICENSE NUMBER:FAX NUMBER:E-MAIL ADDRESS: Name Of Contracting Department:PRINT NAME: TITLE:AUTHORIZED SIGNATURE: DATE SIGNED:I certify that I have the authority to execute this form with respect to the tax matters covered and that the above is true andcorrect. The City of New Orleans is authorized to inspect and/or receive confidential tax information. BUREAU OF REVENUE (Room 1W15) BUREAU OF TREASURY (Room 1W37) This clearance covers Occupational License and This clearance covers Ad Valorem taxes for Real Estate Sales/Use taxes. and Business Property taxes.I HEREBY ASSERT THAT AFTER REV IEW OF T HE T AXPAYER’S I HEREBY ASSERT THAT AFTER REV IEW OF T HE T AXPAYER’SRECORDS OF T HIS DA TE THAT T HE TAXPAYER IS NOT RECORDS OF T HIS DA TE THAT T HE TAXPAYER IS NOTDELINQUENT IN ANY TAXES OWED TO THE CITY. DELINQUENT IN ANY TAXES OWED TO THE CITY. _______________________________________ _______________ _____________________________________ _______________ COLLECTOR OF REVENUE DATE TREASURY CHIEF DATE I attest that the taxpayer named above is not delinquent in any taxes owed to the city. ________________________________ ___________ DIRECTOR OF FINANCE DATE INSTRUCTIONS ON REVERSE SIDE
  17. 17. CITY OF NEW ORLEANSDEPARTMENT OF FINANCETAX CLEARANCE AUTHORIZATION1300 Perdido St., Room 4W07, New Orleans, LA 70112, Fax (504) 658-1570 INSTRUCTIONS 1. To complete this form, provide all of the information requested. Failure to fill in ALL information requested will delay processing. If the form is not signed and dated, the form will not be processed. 2. Complete, sign and date the authorization form and submit with FFRI Eligibility Application to: Hope Enterprise Corporation, 1726 O.C. Haley Blvd., New Orleans, LA 70113 Phone: 504-585-2860, Fax: 504-527-0691 E-mail: ffri@hope-ec.org, Website: www.hope-ec.org 3. This form authorizes the City of New Orleans to inspect and/or receive your confidential tax information. 4. This Tax Clearance Authorization will not be honored for any purpose other than contracting with the City of New Orleans. 5. A separate Tax Clearance Authorization is required for each contract. 6. If you need additional information regarding this authorization, please call the Department of Finance at (504) 658-1550, or e-mail purchasing@cityofno.com 7. The following requirements must be met in order for a Tax Clearance Authorization form to be approved by the City of New Orleans. It is recommended that all outstanding tax and business registration be completed prior to processing the form to expedite contract execution.Real Estate/Personal Property Tax o Businesses are required to be current in payment of all Real Estate Tax and Personal Property Tax. o A business can visit the City of New Orleans’ website, www.cityofno.com at the Bureau of Treasury webpage to pay outstanding Real Estate and Personal Property taxes due. o A business can mail outstanding tax payments to City of New Orleans, Bureau of the Treasury 1300 Perdido St., Room 1W38, New Orleans, La. 70112.Sales Tax/Occupational License o All businesses are required to have a City of New Orleans Sales Tax number. o If the business is located within Orleans Parish, an Occupational License is also required. If the business is domiciled outside of Orleans Parish, a registration is required to be completed to obtain a Revenue account number. o If a business is not registered, a New Business Application must be completed. The application can be found on the City of New Orleans’ website, www.cityofno.com, at the Bureau of Revenue webpage. Under Online Revenue Documents, an application can be downloaded and returned to the City of New Orleans, Bureau of Revenue, 1300 Perdido St., Room 1W15, New Orleans, LA 70112. Any questions may be forwarded to Revenue Administration, 658-1695 or 658-1666. o Non-profit organizations must comply with the Occupational License requirements by completing a New Business Application. The application can be found on the City of New Orleans’ website, www.cityofno.com, at the Bureau of Revenue webpage. Under Online Revenue Documents, an application can be downloaded and returned to the City of New Orleans, Bureau of Revenue, 1300 Perdido St., Room 1W15, New Orleans, LA 70112. Any questions may be forwarded to Revenue Administration, 658-1695 or 658-1666. o Once exempt status is confirmed for the non-profit organization, the organization is exempt from Occupational License fees.Tax Clearance AuthorizationFebruary 6, 2009
  18. 18. BUSINESS LOAN APPLICATIONBACKGROUNDToday’s date Date business started Form of business (check one) ___ For-Profit CorporationName of business ___ Sole Proprietorship ___ Partnership ___ Non-Profit CorporationStreet address ___ Mutual or Cooperative CorporationCity County How did you learn about HOPE?State Zip codePhone number Fax number Federal tax ID num. (incorporated) or social security num. (not incorporated)( ) ( )Contact person Cellular phone or pager (circle) Home telephone ( ) ( )Briefly describe businessBusiness owner(s): Name Address Social Security Number Ownership Interest PercentageLOAN REQUESTEDAmount requested # of employees before loan Projected # of employees 1 year after loanProposed use of loan proceeds (be specific-attach separate sheet, if necessary)Proposed repayment schedule and source(s) of repaymentPossible co-maker(s) and/or guarantor(s) for loan request (provide name, address and phone number) PLEASE COMPLETE THE REVERSE SIDE BLA-03
  19. 19. Collateral available to secure loan (be specific-attach separate sheet, if necessary; provide description, value, and source of valuation)Address(es) of collateral (be specific-attach separate sheet, if necessary)Please submit the following items with this loan application:• Financial Statements and/or Federal Tax Returns for Last Three (3) Years • Personal Financial Statements of Owners, Co-Makers and Guarantors (include balance sheets and income statements) • Business Plan (including projected balance sheets and income statements)• Interim Financial Statements dated within Ninety (90) days of application • Management Resumes• Aging of Accounts Receivable and Accounts Payable • Primary Customer and Supplier References (3 of each)• Business Notes and Lease Payable Schedule (include lender, original amount, • Articles of Incorporation terms and rates, remaining balance, collateral) • Corporate or Partnership Resolutions to BorrowPlease send this application form and the materials described above to a Commercial Loan Officer at the HOPE office nearest you.Headquarters: Local Office: NameHope Enterprise Corporation and Hope Federal Credit Union Hope Enterprise Corporation and Hope Federal Credit Union4 Old River Place, Suite A StreetJackson, MS 39202-3434 City, State ZipPhone: 601-944-1100 Phone:Fax: 601-944-0808 Fax: Cell:The undersigned hereby certifies that the information contained in this application and related materials are true and correct. The undersignedhereby further certifies that the proceeds of any loan made as a result of this application will be used for legal business purposes only, and will notbe used for personal or consumer purposes. The undersigned hereby affirms that he/she does not discriminate on the basis of race, religion, sex,handicap, sexual preference or marital status. The undersigned hereby acknowledges that (1) no commercial loan officer has the authority tocommit Hope Enterprise Corporation and/or Hope Federal Credit Union (HOPE) to any loan without prior approval by HOPE’s loan committee and(2) any loan commitment must be in writing and signed by an authorized representative of HOPE. The undersigned hereby affirms that HOPE isauthorized to request credit information on the business(es), principal(s), co-maker(s) and guarantor(s) listed herein. Business Name: By: Title: Date: Guarantor’s Name: Spouse’s Name: Signature: Signature: Date: Date:Please include any additional Guarantor names and signatures below or include them on a separate attached sheet as required. BLA-03

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