The Michigan Good Food Fund—a new public-private partnership loan and grant fund created to address lack of healthy food access in rural and urban communities by supporting good food entrepreneurs across the state—has launched.
The Michigan State University Center for Regional Food Systems will co-lead business assistance and pipeline development in partnership with the Fair Food Network. The W.K. Kellogg Foundation and Capital Impact Partners are also core partners.
“This fund is unique because it provides financing and business assistance not only to retail, but also supporting efforts in food production, distribution, processing and marketing, while focusing on healthy food access,” said Rich Pirog, acting director of the MSU Center for Regional Food Systems.
The Michigan Good Food Fund addresses the significant need for healthy food access in rural and urban communities. While Michigan is the second-most agriculturally diverse state in the nation with food and agriculture contributing $101.2 billion annually to the state's economy, more than 1.8 million Michigan residents—including 300,000 children—live in lower-income communities with limited access to nutritious food.
The lack of access to affordable and nutritious food has serious implications for the health of children and families—more than 30 percent of Michiganders are obese, the second-highest rate of obesity in the Midwest region. Communities of color are disproportionately affected.
“There are far too many families who have to travel many miles just to get to a grocery store,” said U.S. Sen. Debbie Stabenow, ranking member of the Senate Committee on Agriculture. “The Michigan Good Food Fund is changing that equation in Michigan.”
Created by a coalition of food sector, nonprofit, higher education, government and philanthropic partners, the fund provides financial capital and business assistance to businesses that grow, distribute and sell fresh and nutritious food that reaches low-income populations. This effort will increase access to nutritious food, improve the health of all Michigan residents and drive economic development and job creation.
“An investment in good food is an investment in Michigan’s future,” said Gov. Rick Snyder. “The fund is leveraging our state’s robust food economy to transform the health of our residents and spark economic opportunity.”
The fund will offer financing through flexible, competitive loans, as well as grants and investments with a mission-driven approach targeting those enterprises often overlooked by traditional sources of financing. The goal is to grow the fund to $30 million.
The fund is committed to supporting projects that benefit traditionally underserved communities through increased access to nutritious food as well as capital and job opportunities. It also encourages the sourcing of locally grown food and sustainable environmental practices. It presents an opportunity not only for entrepreneurs, but also for foundations and other investors looking to amplify their work for greater impact in service to low-income children and families.
“We expect to see a demonstrated increase in healthy food access, as well as business expansion and the creation of jobs,” Pirog said. “This fund will help provide equitable access to good food for all Michiganders.”