Enterprise Community Loan Fund Invests in Honor Capital to Increase Access to Healthy Foods and Improve Health in Underserved Communities
Healthy Food Financing Initiative loans support expansion of veteran-owned business and new Save-A-Lot store in Wichita, Kansas
COLUMBIA, Md. (Dec. 8, 2016) – Enterprise Community Loan Fund (Enterprise) has made two investments to support the expansion and impact of Honor Capital, a veteran-owned business focused on improving health and eliminating food deserts by financing grocery stores in underserved communities.
Enterprise provided Honor Capital a $500,000 working capital loan to support the business’ growth and expansion and $844,000 in financing to support the construction of Honor Capital’s fourth Save-A-Lot grocery store. The new store will open in early 2017 in Wichita, Kansas, where the closing of three Wal-Mart stores has reduced access to healthy food in a city with 44 square miles of food deserts. This new store will expand healthy food access for nearly 1,500 low-income families and seniors and will create 12 new jobs.
"Enterprise is investing in Honor Capital so that they can continue to expand access to healthy food and to create jobs in low-income communities across the country,” said Lori Chatman, president, Enterprise Community Loan Fund. “We share Honor Capital’s vision, see their great potential and expect the social return of our investment to grow as we work together to fight food deserts and the health problems that disproportionately affect underserved communities."
“As a start-up company, we were in need of an investor to provide working capital so that we could continue growing our business and the impact we were having in these communities,” said Jamie Allen, chief financial officer, Honor Capital. “Enterprise spent time with us to understand our business model and our goal to open 100 Save-A-Lot grocery stores in food deserts by 2020. We are proud to have them as a partner.”
Counties with higher-than-average percentages of residents of color have fewer healthy food retailers, and a growing body of research suggests this lack of access to healthy food results in nutrition-related illness. For example, access to healthy food is associated with lower diabetes rates, which overall have nearly quadrupled over the past three decades, hitting hardest African-American, Latino and Native American communities.
Enterprise’s loan was made possible by a capital award through the U.S. Department of the Treasury, Community Development Financial Institutions (CDFI) Fund’s Healthy Food Financing Initiative. Added Chatman, "CDFI Fund's HFFI serves a critical role in furthering equitable access to healthy foods in communities suffering from high rates of nutrition-related illness such as diabetes. By making investment that strengthens Honor Capital, Enterprise is seeding the success of future veteran-led Save-A-Lot grocery stores."
Enterprise works with partners nationwide to build opportunity. We create and advocate for affordable homes in thriving communities linked to good schools, jobs, transit and health care. We lend funds, finance development and manage and build affordable housing, while shaping new strategies, solutions and policy. Over more than 30 years, Enterprise has created nearly 358,000 homes, invested $23.4 billion and touched millions of lives.
About Honor Capital
Honor Capital LLC is a veteran-owned business that is focused on combating and eradicating food deserts in underserved communities across the United States. Its mission is focused on providing convenient access to affordable fresh food including meat and produce to USDA-certified food deserts and New Markets Tax Credit qualified Low Income Census Tracts. It has partnered with Save-A-Lot, the third largest grocery store chain in the United States, to train and assist veterans to become Save-A-Lot operators and future business leaders in their communities. For more information regarding Honor Capital visit www.HonorCapitalLLC.com