I 
113TH CONGRESS 
1ST SESSION H. R. 1933 
To provide assistance and opportunity for the creation and support of sustain-
able agriculture activities in America’s cities and to improve access to 
nutrition in America’s cities. 
IN THE HOUSE OF REPRESENTATIVES 
MAY 9, 2013 
Ms. FUDGE (for herself, Ms. EDDIE BERNICE JOHNSON of Texas, Mr. 
THOMPSON of Mississippi, Mr. RANGEL, Ms. KAPTUR, Ms. PINGREE of 
Maine, Mr. CONYERS, and Ms. CHU) introduced the following bill; which 
was referred to the Committee on Agriculture, and in addition to the 
Committee on Education and the Workforce, for a period to be subse-
quently determined by the Speaker, in each case for consideration of such 
provisions as fall within the jurisdiction of the committee concerned 
A BILL 
To provide assistance and opportunity for the creation and 
support of sustainable agriculture activities in America’s 
cities and to improve access to nutrition in America’s 
cities. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 
(a) SHORT TITLE.—This Act may be cited as the 
‘‘Let’s Grow Act of 2013’’. 
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(b) TABLE OF CONTENTS.—The table of contents of 
this Act is the following: 
Sec. 1. Short title; table of contents. 
TITLE I—IMPROVING ACCESS TO FRESH AND NUTRITIOUS FOOD 
Sec. 101. Healthy corner store initiative. 
Sec. 102. Virtual farmers’ markets. 
Sec. 103. Local food insecurity assessments: assessing the unique nutritional 
needs of local communities. 
Sec. 104. Hunger-free communities. 
Sec. 105. EBT farmers market accessibility program. 
Sec. 106. Farm-to-Preschool program. 
Sec. 107. Extension of pilot projects to evaluate health and nutrition promotion 
in the supplemental nutrition assistance program. 
Sec. 108. Expanding and improving the affordability and nutritional integrity 
of the USDA Fresh Fruit and Vegetable Program. 
TITLE II—CREATION OF THE HEALTHY FOOD FINANCING 
INITIATIVE 
Sec. 201. Purpose and definitions. 
Sec. 202. Establishment of Healthy Food Financing Initiative and eligible 
projects. 
Sec. 203. Duties of Secretary. 
Sec. 204. National fund manager. 
Sec. 205. Allocation and use of funds. 
Sec. 206. Partnerships. 
Sec. 207. Evaluation and monitoring. 
Sec. 208. Administrative provisions. 
Sec. 209. Authorization of appropriations. 
TITLE III—DEVELOPMENT OF SUSTAINABLE URBAN 
AGRICULTURE 
Sec. 301. Community gardening grant program. 
Sec. 302. Grants for conversion of abandoned and foreclosed property to urban 
agricultural uses. 
Sec. 303. Expansion of HarvestCorps program. 
Sec. 304. Acquisition of publically owned land and conversion to urban farms 
and community gardens. 
Sec. 305. Urban agricultural workforce training pilot program. 
Sec. 306. Urban agriculture development grants program. 
Sec. 307. Clean and safe drinking water for urban areas and waterways. 
Sec. 308. Extension of assistance to socially disadvantaged urban farmers and 
ranchers. 
Sec. 309. Urban entrepreneur and microenterprise assistance program. 
Sec. 310. Local farm business and market garden competitive loan program. 
TITLE IV—ERADICATING HUNGER 
Sec. 401. Weekends and holidays without hunger. 
Sec. 402. Expansion and modernization of the commodity supplemental food 
program. 
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Sec. 403. Expansion and modernization of the emergency food assistance pro-
gram. 
Sec. 404. Food bank equipment and technology program. 
TITLE V—GO GREEN 
Sec. 501. Green and Sustainable Schools, Museums, and Libraries Grant Pro-
gram. 
TITLE I—IMPROVING ACCESS TO 
FRESH AND NUTRITIOUS FOOD 
SEC. 101. HEALTHY CORNER STORE INITIATIVE. 
(a) IN GENERAL.—The Secretary of Agriculture shall 
carry out a program, to be known as the Green and 
Healthy Corner Store Initiative, of awarding grants to 
units of general local government, nonprofit organizations, 
and tribal governments to assist qualified convenience 
stores to expand and sustain their offering of fruits and 
vegetables. 
(b) PRIORITY.—In awarding grants under this sec-
tion, the Secretary shall give priority to applicants pro-
posing to provide assistance to qualified convenience stores 
in low-income communities. 
(c) ASSISTANCE.—Assistance provided to a qualified 
convenience store pursuant to this section may include the 
following: 
(1) Seed money for the purchase of fruits and 
vegetables and for equipment needed to sell fruits 
and vegetables, such as but not limited to refrig-
erators. 
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(2) Seed money for converting to energy-saving 
equipment, such as but not limited to energy-effi-
cient lighting and refrigerators and a ductless 
HVAC system, to minimize the additional energy 
costs associated with the refrigeration needed to 
stock fruits and vegetables. 
(3) Educational tools and information on the 
importance of fresh fruits and vegetables. 
(4) Simple recipes to assist customers in 
healthy food preparation. 
(d) REQUIREMENTS FOR CONVENIENCE STORES.— 
As a condition on receipt of funds under this section, a 
grantee shall agree to ensure that any qualified conven-
ience store receiving assistance through the grant will— 
(1) maintain its expanded offering of fruits and 
vegetables for a minimum time to be determined by 
the Secretary; 
(2) limit the number of its advertisements for 
alcoholic beverages and cigarettes and offer at least 
an equal amount of advertising for fruits and vege-
tables; 
(3) place advertisements for fruits and vegeta-
bles prominently in the front of the store; 
(4) advertise that the store is participating in 
the Green and Healthy Corner Store Initiative; and 
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(5) work to partner with rural and urban farm-
ers markets to obtain fruits and vegetables for sale. 
(e) COOPERATION AMONG STORES TO DECREASE 
PRICES.—The Secretary shall encourage grant recipients 
under this section to encourage qualified convenience 
stores receiving assistance through the grant to combine 
efforts with other convenience stores when ordering fruits 
and vegetables from distributors in an effort to decrease 
the price of such goods. 
(f) DEFINITIONS.—In this section: 
(1) The term ‘‘Bureau-funded school’’ has the 
meaning given to such term in section 1141 of the 
Education Amendments of 1978 (25 U.S.C. 2021). 
(2) The terms ‘‘elementary school’’, ‘‘local edu-
cational agency’’, and ‘‘secondary school’’ have the 
meanings given to such terms in section 9101 of the 
Elementary and Secondary Education Act of 1965 
(20 U.S.C. 7801). 
(3) The term ‘‘low-income communities’’ in-
cludes— 
(A) communities with a high percentage of 
children eligible for free and reduced priced 
lunches under the Richard B. Russell National 
School Lunch Act (42 U.S.C. 1751 et seq.); 
and 
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(B) any other communities determined by 
the Secretary to be low-income for purposes of 
this section. 
(4) The term ‘‘Secretary’’ means the Secretary 
of Agriculture. 
(5) The term ‘‘qualified convenience store’’ 
means a convenience store located within a quarter 
mile of an elementary school or a secondary school 
that is a public school or a Bureau-funded school. 
SEC. 102. VIRTUAL FARMERS’ MARKETS. 
(a) ESTABLISHMENT OF GRANT PROGRAM.—From 
the amounts appropriated to carry out this section, the 
Secretary of Agriculture shall award grants, on a competi-
tive basis, to eligible entities to enable such entities to 
carry out a program that provides access to farmers’ mar-
kets to communities that are food deserts. 
(b) USE OF FUNDS.—An eligible entity receiving a 
grant under this section shall use such funds for the fol-
lowing: 
(1) Purchasing virtual farmers market software 
(including computer kiosks and swipe card stations), 
or entering into a contract with an eligible organiza-
tion to develop and maintain the technology nec-
essary, to carry out a virtual farmers market pro-
gram to enable individuals and organizations in com-
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munities that are food deserts to order and purchase 
fruits and vegetables and other healthy food items 
using such technology. 
(2) Training staff to— 
(A) assist individuals and organizations in 
communities that are food deserts to order and 
purchase food products under the program de-
scribed in paragraph (1); and 
(B) purchase and order food products 
under the program for the eligible entity. 
(3) Packaging food products purchased under 
the program in manner that makes transportation of 
the products possible by foot. 
(4) Paying staff to manage the program, and 
package and assist in the distribution and delivery 
of food products purchased under the program. 
(5) Raising public awareness about the pro-
gram. 
(6) Developing simple food preparation strate-
gies and menus for customers of the program. 
(7) Coordinating with the Secretary of Agri-
culture to develop mechanisms to enable reimburse-
ment under the supplemental nutrition assistance 
program established under the Food and Nutrition 
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Act of 2008 (7 U.S.C. 2011 et seq.) for purchases 
made under the program. 
(8) Purchasing or rehabilitating buses, includ-
ing buses that were formerly used as school buses, 
that may be used to transport to the eligible enti-
ty— 
(A) the foods ordered and purchased under 
the program using the technology described in 
paragraph (1); or 
(B) other fruits and vegetables that meet 
the requirements of subsection (e) in order to 
provide additional opportunities for individuals 
and organizations in communities that are food 
deserts to purchase locally grown fruits and 
vegetables. 
(c) APPLICATION.—In order to receive a grant under 
this section, an eligible entity shall submit an application 
to the Secretary at such time, in such manner, and con-
taining such information as the Secretary may require. 
(d) GRANT AMOUNT.—A grant awarded under this 
section may not be greater than $10,000. 
(e) LIMITATIONS ON FOOD PURCHASED.—To the ex-
tent practicable, the majority of food purchased under a 
virtual farmers market program carried out by an eligible 
entity under this section shall be from farmers located 
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within a 50-mile radius of the site where the food is or-
dered and delivered under the program, except in the case 
where the eligible entity demonstrates to the Secretary 
that no such farmers exist or that the farmers are not 
able to provide a sufficient variety or amount of food for 
the purposes of the program. 
(f) REPORT.—Not later than 1 year after the first 
fiscal year for which funds are appropriated to carry out 
this section, the Secretary shall report to Congress on the 
progress made in carrying out programs funded by grants 
under this section, including— 
(1) the number of individuals served by such 
programs and the barriers and opportunities for ad-
ditional such programs; and 
(2) how such programs have increased access or 
encouraged permanent farmers markets to be estab-
lished near communities that are food deserts. 
(g) DEFINITIONS.—In this section— 
(1) BUREAU-FUNDED SCHOOL.—The term ‘‘bu-
reau-funded school’’ has the meaning given such 
term in section 1146 of the Education Amendments 
of 1978 (25 U.S.C. 2026). 
(2) ELIGIBLE ENTITY.—The term ‘‘eligible enti-
ty’’ means an entity that predominantly serves com-
munities that are food deserts, including— 
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(A) a local educational agency or bureau- 
funded school; 
(B) a nonprofit, community-based organi-
zation or entity (including a park and recre-
ation department, recreation center, child care 
facility, or senior center); 
(C) a convenience store; or 
(D) other entity that the Secretaries deem 
to be an eligible entity. 
(3) ELIGIBLE ORGANIZATION.—The term ‘‘eligi-
ble organization’’ means an organization with exper-
tise in developing and maintaining a virtual farmers 
market. 
(4) LOCAL EDUCATIONAL AGENCY.—The term 
‘‘local educational agency’’ has the meaning given 
such term in section 9101 of the Elementary and 
Secondary Education Act of 1965 (20 U.S.C. 7801). 
(5) FOOD DESERT.—The term ‘‘food desert’’ 
has the meaning given such term in section 7527(a) 
of the Food, Conservation, and Energy Act of 2008 
(Public Law 110–234). 
(6) SECRETARY.—The term ‘‘Secretary’’ means 
the Secretary of Agriculture. 
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(7) SWIPE CARD STATIONS.—The term ‘‘swipe 
card stations’’ shall include support for the use of 
electronic benefit transfer cards. 
(8) VIRTUAL
FARMERS
MARKET.—The term 
‘‘virtual farmers market’’ means an online grocery 
store that enables individuals to purchase foods from 
local farms and distributors. 
SEC. 103. LOCAL FOOD INSECURITY ASSESSMENTS: ASSESS-
ING THE UNIQUE NUTRITIONAL NEEDS OF 
LOCAL COMMUNITIES. 
(a) IN GENERAL.—The Secretary of Health and 
Human Services shall establish a 3-year pilot program to 
award grants to local and tribal governments, on a com-
petitive basis, to allow such local and tribal governments, 
in partnership with the local community organizations 
under subsection (e), to— 
(1) conduct a food security assessment; and 
(2) make an inventory of the system in order to 
identify the strengths and gaps in such system. 
(b) DATA POINTS FOR ASSESSMENT.—For purposes 
of conducting an Assessment and making an inventory 
under a grant under subsection (a), with respect to the 
community served by a local or tribal government, such 
government shall examine the following food security and 
food system issues in the community: 
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(1) The prevalence of childhood obesity. 
(2) The availability of safe routes to school for 
children. 
(3) The quality of food served in school and 
child care settings. 
(4) The availability of supermarkets. 
(5) The cost and availability of fresh fruits and 
vegetables. 
(6) The concentration of convenience stores, 
and other food vendors that sell a disproportionate 
amount of foods that are not fresh fruits and vegeta-
bles. 
(7) The availability of products. 
(8) The concentration of fast food restaurants. 
(9) The availability of green space or recreation 
areas, and the extent to which such space or areas 
encourage physical activity by adults and children. 
(10) Any other issues determined to be relevant 
by the local or tribal government. 
(11) Any other issues determined to be relevant 
by the Secretary of Health and Human Services. 
(c) NUMBER OF SITES.—The Secretary of Health 
and Human Services, in awarding grants under subsection 
(a), shall award grants to no more than— 
(1) 20 local governments; and 
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(2) 5 tribal governments. 
(d) PRIORITY.—In awarding grants under subsection 
(a), the Secretary of Health and Human Services shall 
give priority to those local and tribal governments that 
serve communities with the highest concentrations of pov-
erty. 
(e) REQUIREMENT OF PARTNERSHIPS.—In order to 
qualify for a grant under subsection (a), a local or tribal 
government shall demonstrate, to the satisfaction of the 
Secretary of Health and Human Services, that the local 
or tribal government has entered into a partnership (for 
the purpose of conducting an assessment and making an 
inventory under subsection (a)) with at least one of the 
following local community organizations: 
(1) A nonprofit community-based organization 
or entity. 
(2) A developer or urban planning institution. 
(3) An accredited college or university. 
SEC. 104. HUNGER-FREE COMMUNITIES. 
Section 4405 of the Food, Conservation, and Energy 
Act of 2008 (7 U.S.C. 7517) is amended— 
(1) in subsection (a)— 
(A) by striking paragraph (1) and insert-
ing the following: 
‘‘(1) ELIGIBLE ENTITY.— 
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‘‘(A) COLLABORATIVE
GRANTS.—In sub-
section (b), the term ‘eligible entity’ means a 
public food program service provider or non-
profit organization, including an emergency 
feeding organization, that has collaborated or 
will collaborate with 1 or more local partner or-
ganizations to achieve at least 1 hunger-free 
communities goal. 
‘‘(B) INCENTIVE
GRANTS.—In subsection 
(c), the term ‘eligible entity’ means a nonprofit 
organization (including an emergency feeding 
organization), an agricultural cooperative, pro-
ducer network or association, community health 
organization, public benefit corporation, eco-
nomic development corporation, farmers’ mar-
ket, community-supported agriculture program, 
buying club, supplemental nutrition assistance 
program retail food store, a State, local, or trib-
al agency, and any other entity the Secretary 
designates.’’; and 
(B) by adding at the end the following: 
‘‘(4) SUPPLEMENTAL
NUTRITION
ASSISTANCE 
PROGRAM.—The term ‘supplemental nutrition assist-
ance program’ means the supplemental nutrition as-
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sistance program established under the Food and 
Nutrition Act of 2008 (7 U.S.C. 2011 et seq.). 
‘‘(5) UNDERSERVED
COMMUNITY.—The term 
‘underserved community’ has the meaning given the 
term in section 25 of the Food and Nutrition Act of 
2008 (7 U.S.C. 2034).’’; 
(2) in subsection (b)(1)(A), by striking ‘‘not 
more than 50 percent of any funds made available 
under subsection (e)’’ and inserting ‘‘funds made 
available under subsection (d)(1)’’; and 
(3) by striking subsections (c), (d), and (e) and 
inserting the following: 
‘‘(c) 
HUNGER-FREE
COMMUNITIES
INCENTIVE 
GRANTS.— 
‘‘(1) AUTHORIZATION.— 
‘‘(A) IN GENERAL.—In each of the years 
specified in subsection (d), the Secretary shall 
make grants to eligible entities in accordance 
with paragraph (2). 
‘‘(B) 
FEDERAL
SHARE.—The 
Federal 
share of the cost of carrying out an activity 
under this subsection shall not exceed 50 per-
cent of the total cost of the activity. 
‘‘(C) NON-FEDERAL SHARE.— 
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‘‘(i) IN GENERAL.—The non-Federal 
share of the cost of an activity under this 
subsection may be provided— 
‘‘(I) in cash or in-kind contribu-
tions as determined by the Secretary, 
including 
facilities, 
equipment, 
or 
services; and 
‘‘(II) by a State or local govern-
ment or a private source. 
‘‘(ii) LIMITATION.—In the case of a 
for-profit entity, the non-Federal share de-
scribed in clause (i) shall not include serv-
ices of an employee, including salaries paid 
or expenses covered by the employer. 
‘‘(2) CRITERIA.— 
‘‘(A) IN GENERAL.—For purposes of this 
subsection, an eligible entity is a governmental 
agency or nonprofit organization that— 
‘‘(i) meets the application criteria set 
forth by the Secretary; and 
‘‘(ii) proposes a project that, at a 
minimum— 
‘‘(I) has the support of the State 
agency; 
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‘‘(II) would increase the purchase 
of fruits and vegetables by low-income 
consumers participating in the supple-
mental nutrition assistance program 
by providing incentives at the point of 
purchase; 
‘‘(III) agrees to participate in the 
evaluation described in paragraph (4); 
‘‘(IV) ensures that the same 
terms and conditions apply to pur-
chases made by individuals with bene-
fits issued under this Act and incen-
tives provided for in this subsection as 
apply to purchases made by individ-
uals who are not members of house-
holds receiving benefits, such as pro-
vided for in section 278.2(b) of title 7, 
Code of Federal Regulations (or a 
successor regulation); and 
‘‘(V) includes effective and effi-
cient technologies for benefit redemp-
tion systems that may be replicated in 
other for States and communities. 
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‘‘(B) 
PRIORITY.—In 
awarding 
grants 
under this section, the Secretary shall give pri-
ority to projects that— 
‘‘(i) maximize the share of funds used 
for direct incentives to participants; 
‘‘(ii) use direct-to-consumer sales mar-
keting; 
‘‘(iii) demonstrate a track record of 
designing and implementing successful nu-
trition incentive programs that connect 
low-income consumers and agricultural 
producers; 
‘‘(iv) provide locally or regionally pro-
duced fruits and vegetables; 
‘‘(v) are located in underserved com-
munities; or 
‘‘(vi) address other criteria as estab-
lished by the Secretary. 
‘‘(3) APPLICABILITY.— 
‘‘(A) IN GENERAL.—The value of any ben-
efit provided to a participant in any activity 
funded under this subsection shall not be con-
sidered income or resources for any purpose 
under any Federal, State, or local law. 
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‘‘(B) PROHIBITION
ON
COLLECTION
OF 
SALES TAXES.—Each State shall ensure that no 
State or local tax is collected on a purchase of 
food under this subsection. 
‘‘(C) NO
LIMITATION
ON
BENEFITS.—A 
grant made available under this subsection shall 
not be used to carry out any project that limits 
the use of benefits under the Food and Nutri-
tion Act of 2008 (7 U.S.C. 2011 et seq.) or any 
other Federal nutrition law. 
‘‘(D) HOUSEHOLD
ALLOTMENT.—Assist-
ance provided under this subsection to house-
holds receiving benefits under the supplemental 
nutrition assistance program shall not— 
‘‘(i) be considered part of the supple-
mental nutrition assistance program bene-
fits of the household; or 
‘‘(ii) be used in the collection or dis-
position of claims under section 13 of the 
Food and Nutrition Act of 2008 (7 U.S.C. 
2022). 
‘‘(4) EVALUATION.— 
‘‘(A) INDEPENDENT
EVALUATION.—The 
Secretary shall provide for an independent eval-
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uation of projects selected under this subsection 
that measures the impact of each project on— 
‘‘(i) improving the nutrition and 
health status of participating households 
receiving incentives under this subsection; 
and 
‘‘(ii) increasing fruit and vegetable 
purchases in participating households. 
‘‘(B) REQUIREMENT.—The independent 
evaluation under subparagraph (A) shall use 
rigorous methodologies capable of producing 
scientifically valid information regarding the ef-
fectiveness of a project. 
‘‘(C) COSTS.—The Secretary may use 
funds not to exceed 10 percent of the funding 
provided to carry out this section to pay costs 
associated with administering, monitoring, and 
evaluating each project. 
‘‘(d) FUNDING.— 
‘‘(1) AUTHORIZATION
OF
APPROPRIATIONS.— 
There is authorized to be appropriated to carry out 
subsection (b) $5,000,000 for each of fiscal years 
2014 through 2018. 
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‘‘(2) MANDATORY FUNDING.—Of the funds of 
the Commodity Credit Corporation, the Secretary 
shall use to carry out subsection (c)— 
‘‘(A) $15,000,000 for fiscal year 2014; 
‘‘(B) $20,000,000 for each of fiscal years 
2015 through 2017; and 
‘‘(C) $25,000,000 for fiscal year 2018.’’. 
SEC. 105. EBT FARMERS MARKET ACCESSIBILITY PRO-
GRAM. 
(a) AUTHORITY FOR PROGRAM.—The Secretary of 
Agriculture shall develop and carry out a program to make 
grants to entities that operate farmers markets in urban 
areas for the purchase of equipment and to finance the 
installation of equipment necessary to operate EBT sys-
tems at farmers markets. 
(b) AUTHORIZATION OF APPROPRIATIONS.—There is 
authorized to be appropriated to carry out this section 
$10,000,000 for each of the fiscal years in the 8-year pe-
riod beginning on the October 1 of the first fiscal year 
that begins after the date of the enactment of this Act. 
SEC. 106. FARM-TO-PRESCHOOL PROGRAM. 
(a) AUTHORITY FOR PROGRAM.—The Secretary of 
Agriculture shall develop and carry out a grant program 
to make grants to community-based and nonprofit organi-
zations to develop a Farm-to-Preschool program that fos-
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ters the connection between preschools, Head Start pro-
grams, childcare or daycare centers, kindergarten readi-
ness programs in K–12 school districts, and in-home care 
facilities, with small- or medium-sized agricultural pro-
ducers, for the purposes of— 
(1) developing an industry-leading preschool nu-
trition education and meal program designed to help 
prevent the onset of childhood obesity and develop 
foundational healthy eating and lifestyle habits, 
(2) creating nutritious and healthy made-from- 
scratch meals and menus using recipes that include 
mostly locally grown and produced organic foods, 
(3) developing recipes and menus that will serve 
as a tool for parent awareness, access to healthy 
food, food preparation, and eating, and engagement 
in nutrition education, 
(4) developing experiential educational curricula 
centered around farms, farmers’ markets, and school 
gardens for parents and children, 
(5) replicating ‘‘Farm-to-Preschool’’ parent 
awareness and engagement in nutrition education, 
healthy eating and food preparation nationally, 
(6) supporting local and regional agriculture 
communities, and 
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(7) promoting the institutionalization of pre-
school wellness policies. 
(b) AVAILABILITY AND USE OF GRANTS.—The Sec-
retary shall make grants under subsection (a)— 
(1) to be used— 
(A) to support the initial costs of imple-
menting a new, or expanding an existing, 
Farm-to-Preschool program, 
(B) in an amount not to exceed $250,000 
to support the training and access to resources 
and information necessary to conduct a success-
ful Farm-to-Preschool program, or 
(C) in an amount not to exceed $50,000 to 
support the cost of conducting research, identi-
fying resources, and developing partnerships to 
design a successful and sustainable Farm-to- 
Preschool program, 
(2) to eligible entities that agree to provide, in 
cash or in kind, not less that 20 percent of the cost 
of the use for which the respective grants are made, 
and 
(3) to achieve to the maximum extent prac-
ticable geographical diversity and grantee participa-
tion in urban, rural and tribal communities. 
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(c) REPORT.—Not later than 1 year after the first 
fiscal year for which funds are appropriated to carry out 
this section, the Secretary of Agriculture shall report to 
Congress on the progress made in carrying out programs 
funded by grants under this section, including preschool 
nutrition education curricula centered around farms, 
farmers’ markets, and school gardens, and the institu-
tionalization of preschool wellness policies. 
(d) AUTHORIZATION OF APPROPRIATIONS.—There is 
authorized to be appropriated for fiscal years 2014 
through 2018 in the aggregate $10,000,000 to carry out 
this section. 
SEC. 107. EXTENSION OF PILOT PROJECTS TO EVALUATE 
HEALTH AND NUTRITION PROMOTION IN THE 
SUPPLEMENTAL 
NUTRITION 
ASSISTANCE 
PROGRAM. 
Section 17(k)(5)(A) of the Food and Nutrition Act 
of 2008 (7 U.S.C. 2036(k)(5)(A)) is amended by striking 
‘‘2012’’ and inserting ‘‘2018’’. 
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SEC. 108. EXPANDING AND IMPROVING THE AFFORD-
ABILITY AND NUTRITIONAL INTEGRITY OF 
THE USDA FRESH FRUIT AND VEGETABLE 
PROGRAM. 
Subsection (b) of section 19 of the Richard B. Russell 
National School Lunch Act (42 U.S.C. 1769a(b)) is 
amended to read as follows: 
‘‘(b) PROGRAM.—A school participating in the pro-
gram— 
‘‘(1) shall make free fruits and vegetables avail-
able to students throughout the school day (or at 
such other times as are considered appropriate by 
the Secretary) in 1 or more areas designated by the 
school; and 
‘‘(2) may make free fruits and vegetables in any 
other form (such as fresh, frozen, dried, pureed, or 
canned) available to students throughout the school 
day (or at such other times as are considered appro-
priate by the Secretary) in 1 or more areas des-
ignated by the school only if such fruits and vegeta-
bles meet any additional nutrition specifications, as 
established by the Secretary.’’. 
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TITLE 
II—CREATION 
OF 
THE 
HEALTHY FOOD FINANCING 
INITIATIVE 
SEC. 201. PURPOSE AND DEFINITIONS. 
(a) PURPOSE.—The purpose of the Healthy Food Fi-
nancing Initiative is to improve access to healthy foods 
in underserved areas, to create and preserve quality jobs, 
and to revitalize low-income communities by providing 
loans and grants to retailers of fresh and healthy food to 
overcome the higher costs and initial barriers to entry in 
underserved urban, suburban, and rural areas. 
(b) DEFINITIONS.—In this title: 
(1) COMMUNITY DEVELOPMENT FINANCIAL IN-
STITUTION.—The term ‘‘community development fi-
nancial institution’’ has the meaning given the term 
in section 103 of the Community Development 
Banking and Financial Institutions Act of 1994 (12 
U.S.C. 4702). 
(2) EXPAND OR PRESERVE THE AVAILABILITY 
OF
FRESH
FRUITS
AND
VEGETABLES
IN
UNDER-
SERVED AREAS.—The term ‘‘expand or preserve the 
availability of fresh fruits and vegetables in under-
served areas’’ means— 
(A) in the case of a project not involving 
a regional food hub, a project that— 
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(i) carries a variety of fresh produce, 
as defined by the national fund manager to 
reflect differences in project size and type; 
(ii) sells food for home preparation 
and consumption; and 
(iii) at a minimum— 
(I) offers for sale at least 3 dif-
ferent varieties of food in each of the 
4 staple food groups (bread and 
grains, dairy, fruits and vegetables, 
and meat, poultry, and fish), with per-
ishable food in at least 2 categories, 
on a daily basis; or 
(II) has at least 50 percent of 
the total sales of the store (including 
food and nonfood items or services) 
from the sale of eligible staple food; 
and 
(B) in the case of a regional food hub, a 
project that— 
(i) supplies a variety of fresh produce 
to a healthy food retailer located in an un-
derserved, low- and moderate-income area; 
and 
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(ii) participates in the supplemental 
nutrition assistance program established 
under the Food and Nutrition Act of 2008 
(7 U.S.C. 2011 et seq.). 
(3) FARMERS’ MARKET.—The term ‘‘farmers’ 
market’’ means a common facility or area in which 
several agricultural producers gather on a regular 
and recurring basis to sell a variety of fresh fruits 
and vegetables and other locally grown agricultural 
products directly to consumers. 
(4) FOOD ACCESS ORGANIZATION.—The term 
‘‘food access organization’’ means a nonprofit orga-
nization with expertise in improving access to 
healthy food in underserved communities. 
(5) HEALTHY
FOOD
RETAILER.—The term 
‘‘healthy food retailer’’ means a commercial, cooper-
ative, and nonprofit seller of fresh or healthy food, 
including a grocery store, mobile healthy food re-
tailer, farmers’ market, cooperative, corner store, 
bodega, or other store that sells other food and non- 
food options along with a full range of fresh or 
healthy foods. 
(6) INITIATIVE.—The term ‘‘Initiative’’ means 
the Healthy Food Financing Initiative. 
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(7) LOCAL
FUNDS.—The term ‘‘local funds’’ 
means the allocation of national funds and any other 
forms of financial assistance (including grants, 
loans, and equity investments) that are raised by 
partnerships to carry out the purposes of the Initia-
tive. 
(8) NATIONAL
FUNDS.—The term ‘‘national 
funds’’ means amounts appropriated to carry out the 
Initiative and any other forms of financial assistance 
(including grants, loans, and equity investments) 
that are raised by the national fund manager to 
carry out the Initiative. 
(9) NATIONAL
FUND
MANAGER.—The term 
‘‘national fund manager’’ means a community devel-
opment financial institution in existence as of the 
date of enactment of this Act and certified by the 
Community 
Development 
Financial 
Institutions 
Fund of the Department of the Treasury that is des-
ignated by the Secretary to manage the Initiative for 
purposes of— 
(A) raising private capital; 
(B) providing financial and technical as-
sistance to partnerships; and 
(C) funding eligible projects directly at the 
request of partnerships to attract retailers of 
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healthy food to underserved urban, suburban, 
and rural areas in accordance with this title. 
(10) PARTNERSHIP.— 
(A) IN
GENERAL.—The term ‘‘partner-
ship’’ means a regional, State, or local public 
and private partnership that is organized to im-
prove access to healthy foods by providing fi-
nancial and technical assistance to eligible 
projects. 
(B) INCLUSIONS.—The term includes— 
(i) an unit of State, local, or tribal 
government or a quasi-public State or local 
government agency; 
(ii) a food access or community health 
organization committed to improving ac-
cess to healthy foods; 
(iii) a community development finan-
cial institution or other organization that 
is capable of administering a loan and 
grant program in accordance with this 
title; and 
(iv) other organizations interested in 
improving access to healthy foods in under-
served areas. 
(11) PERISHABLE FOOD.— 
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(A) IN GENERAL.—The term ‘‘perishable 
food’’ means food that is fresh, refrigerated, or 
frozen. 
(B) EXCLUSION.—The term ‘‘perishable 
food’’ does not include packaged or canned 
goods. 
(12) REGIONAL
FOOD
HUB.—The term ‘‘re-
gional food hub’’ means a business or organization 
that actively manages the aggregation, distribution, 
and marketing of source-identified food products pri-
marily from local and regional producers to 
strengthen the ability of the producers to satisfy 
wholesale, retail, and institutional demand. 
(13) 
SECRETARY.—The 
term 
‘‘Secretary’’ 
means the Secretary of Agriculture. 
(14) SERVE.—The term ‘‘serve’’ means, with 
respect to a regional food hub, that the regional food 
hub, in connection with an eligible project, supplies 
fresh produce or other healthy foods— 
(A) to a healthy food retailer that partici-
pates in the supplemental nutrition assistance 
program established under the Food and Nutri-
tion Act of 2008 (7 U.S.C. 2011 et seq.); 
(B) to a healthy food retailer located in a 
low- or moderate-income area; and 
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(C) to institutions such as hospitals, 
schools, or food banks that largely serve a low- 
and moderate-income area. 
(15) STAPLE FOOD.— 
(A) IN GENERAL.—The term ‘‘staple food’’ 
means food that is a basic dietary item, includ-
ing bread, flour, fruits, vegetables, and meat. 
(B) EXCLUSIONS.—The term ‘‘staple food’’ 
does not include snack or accessory food (such 
as chips, soda, coffee, condiments, and spices) 
or ready-to-eat, prepared food. 
(16) VARIETY.—The term ‘‘variety’’ means an 
assortment of different types of food items. 
SEC. 202. ESTABLISHMENT OF HEALTHY FOOD FINANCING 
INITIATIVE AND ELIGIBLE PROJECTS. 
(a) ESTABLISHMENT.—There is established in the 
Department of Agriculture a Healthy Food Financing Ini-
tiative. 
(b) MANAGEMENT.—Not later than 1 year after the 
date of enactment of this Act, the Secretary shall select 
and enter into a grant agreement with a national fund 
manager that will be responsible for the management of 
the Initiative. 
(c) ELIGIBLE PROJECTS.— 
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(1) ELIGIBILITY CRITERIA.—Subject to the re-
quirements of this section, the national fund man-
ager shall establish the eligibility criteria for projects 
to be assisted by the Initiative. 
(2) REQUIRED PROJECT ELEMENTS.—To be eli-
gible to receive assistance through the Initiative, a 
project shall— 
(A) include a supermarket, grocery store, 
regional food hub, farmers’ market, or other 
healthy food retailer; 
(B) consist of a for-profit business enter-
prise, a member- or worker-owned cooperative, 
or a nonprofit organization; 
(C) meet the eligibility criteria established 
under this section; 
(D) continue to be a viable business enter-
prise with a financial viability plan; 
(E) require an investment of public fund-
ing to move forward and be competitive; 
(F) operate on a self-service basis; 
(G) expand or preserve the availability of 
fresh fruits and vegetables in underserved areas 
and other healthy, fresh, high quality unpre-
pared and unprocessed foods in such areas; and 
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SMARTINEZ on DSK6TPTVN1PROD with BILLS
(H)(i) in the case of a regional food hub, 
serve retailers that accept benefits under the 
supplemental nutrition assistance program es-
tablished under the Food and Nutrition Act of 
2008 (7 U.S.C. 2011 et seq.); or 
(ii) in the case of a retailer that is not a 
regional food hub, agree to accept such benefits. 
(d) INCOME CRITERIA.—Each eligible project shall be 
located in or, in the case of a project involving a regional 
food hub, shall serve— 
(1) a low- or moderate-income census tract, as 
determined by the Bureau of the Census of the De-
partment of Commerce; 
(2) a population census tract that is treated as 
a low-income community under section 45D(e) of the 
Internal Revenue Code of 1986; or 
(3) an area that significantly serves an adjacent 
area that meets the criteria described in paragraph 
(1) or (2), as approved by the national fund man-
ager. 
(e) UNDERSERVED CRITERIA.— 
(1) IN GENERAL.—Each eligible project shall be 
located in, or in the case of a project involving a re-
gional food hub, shall serve, an underserved area, as 
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determined by the partnerships according to criteria 
established by the national fund manager. 
(2) FACTORS.—In determining whether an area 
is an underserved area, the following factors shall be 
taken into consideration: 
(A) Population density. 
(B) Below average supermarket density or 
sales. 
(C) Car ownership. 
(D) Geographical or physical barriers, such 
as highways, mountains, major parks, bodies of 
water, or areas with large amounts of vacant 
lots or foreclosed properties. 
(3) LOCATIONS.—On an annual basis, the na-
tional fund manager shall collect data and publish 
maps that show the location of underserved areas. 
(f) PRIORITY PROJECTS.— 
(1) IN GENERAL.—Priority shall be given to 
projects that— 
(A) are located in severely distressed low- 
income communities, as defined by the Commu-
nity Development Financial Institutions Fund 
of the Department of the Treasury; and 
(B) include 1 or more of the following 
characteristics: 
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(i) The project will create or retain 
quality jobs in the community, as deter-
mined in accordance with paragraph (2). 
(ii) The project has community sup-
port in terms of store quality, affordability, 
site location, and coordination with local 
community plans or other programs pro-
moting community and economic develop-
ment. 
(iii) The project supports regional 
food systems and locally grown foods, to 
the extent available. 
(iv) In major metropolitan areas, the 
project is associated with a transit-oriented 
development project. 
(v) In areas with public transit, the 
project is accessible by public transit. 
(vi) The project involves the reuse of 
a building that is listed in or eligible for 
the National Register of Historic Places. 
(vii) The project involves a brownfield 
or grayfield (as those terms are used in the 
Comprehensive Environmental Response, 
Compensation, and Liability Act of 1980 
(42 U.S.C. 9601 et seq.)). 
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(viii) The estimated energy consump-
tion of the project, calculated using build-
ing energy software approved by the De-
partment of Energy, will qualify the 
project for designation under the Energy 
Star program established by section 324A 
of the Energy Policy and Conservation Act 
(42 U.S.C. 6294a). 
(ix) The project involves women- and 
minority-owned businesses. 
(2) QUALITY
JOBS.—For purposes of para-
graph (1)(B)(i), a quality job is a job that— 
(A) provides wages that are comparable to 
or better than similar positions in existing busi-
nesses of similar size in similar local economies; 
(B) offers benefits that are comparable to 
or better than what is offered for similar posi-
tions in existing local businesses of similar size 
in similar local economies; and 
(C) is targeted for residents of neighbor-
hoods with a high proportion of persons of low 
income (as that term is defined in section 
102(a) of the Housing and Community Devel-
opment Act of 1974 (42 U.S.C. 5302(a))) 
through local targeted hiring programs. 
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SEC. 203. DUTIES OF SECRETARY. 
(a) IN GENERAL.—The Secretary shall— 
(1) designate a national fund manager to man-
age national funds; 
(2) oversee the Initiative nationally; 
(3) work closely with the national fund man-
ager— 
(A) to ensure that funds are used appro-
priately and in the most effective manner prac-
ticable; and 
(B) to develop the program strategy into a 
detailed work plan, program, and operating 
budget; 
(4) review and approve the operating budget for 
the national fund manager to ensure that the admin-
istrative costs are— 
(A) reasonable (not more than 5 percent of 
the total budget); 
(B) connected to the costs of operations; 
and 
(C) reflect efficient operations by the na-
tional fund manager; and 
(5) make available to the public an annual re-
port, using data obtained from the Department of 
Agriculture, the Department of Health and Human 
Services, and the community development financial 
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SMARTINEZ on DSK6TPTVN1PROD with BILLS
institutions, that describes the impacts of the Initia-
tive, including tracking health and economic develop-
ment indicators at the local, State, and national lev-
els to determine the impacts of individual projects 
and the collective impact in local areas and statewide 
of funded projects and the Initiative overall. 
(b) PERFORMANCE TARGETS.— 
(1) IN GENERAL.—The Secretary shall conduct 
financial audits of, and establish performance tar-
gets for, the national fund manager, which shall in-
clude, at a minimum, the requirements described in 
this subsection. 
(2) GEOGRAPHIC SPREAD.—Partnerships fund-
ed by the Initiative shall be geographically diverse 
and representative of the underserved areas across 
the United States. 
(3) FOCUS ON LOW-INCOME COMMUNITIES.—A 
substantial portion of the projects funded by part-
nerships shall serve very low- and low-income com-
munities, as defined by the Bureau of the Census of 
the Department of Commerce. 
(4) FINANCIAL
EFFECTIVENESS
OF
THE
NA-
TIONAL FUND MANAGER.—The national fund man-
ager and any local financial institution involved in a 
partnership shall demonstrate on-going capacity and 
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timeliness in raising private capital and disbursing 
funds as required under the Initiative. 
(5) TECHNICAL
ASSISTANCE
EFFECTIVENESS 
OF THE NATIONAL FUND MANAGER.—The provision 
of technical assistance by the national fund manager 
shall be evaluated based on— 
(A) the responsiveness of the national fund 
manager to requests for assistance; and 
(B) the ability of the national fund man-
ager to craft programs that develop needed new 
capacities in partnerships. 
(6) IMPACT.—Performance targets shall ad-
dress the allocation of funds by the national fund 
manager to partnerships and the tracking and re-
porting of the impacts of the funds in improving ac-
cess to fresh, healthy foods and in achieving other 
related impacts. 
(c) DISBURSEMENT OF FUNDS.—The Secretary shall 
assist in the administration of the Initiative by approving 
the disbursement of funds to the national fund manager 
in a manner that facilitates the implementation of the 
overall Initiative. 
SEC. 204. NATIONAL FUND MANAGER. 
(a) SELECTION OF NATIONAL FUND MANAGER.— 
The Secretary shall select the national fund manager 
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SMARTINEZ on DSK6TPTVN1PROD with BILLS
through a competitive process from among community de-
velopment financial institutions that have a proven and 
recent track record of success and effectiveness in— 
(1) attracting private capital; 
(2) developing and managing programs that 
provide grants and loans to support supermarkets 
and other healthy food retailers in low- and mod-
erate-income areas, including the development of 
grocery stores, farmers markets, and other healthy 
food retailer models; 
(3) making and servicing loans that are similar 
to loans proposed in the Initiative or having a record 
of otherwise successfully investing in the develop-
ment of healthy food retailers; 
(4) effectively managing multiple contracts and 
subcontractors; 
(5) effectively managing large capital pools, of 
at least $100,000,000; and 
(6) providing or contracting for the provision of 
technical assistance. 
(b) RESPONSIBILITIES
OF
THE NATIONAL FUND 
MANAGER.—The designated national fund manager 
shall— 
(1) raise other forms of financial assistance to 
match or leverage the national funds; 
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(2) use administrative funds to develop appro-
priate training programs and offer technical assist-
ance services to— 
(A) partnerships; 
(B) State, local, and tribal governments; 
(C) the food retail industry; and 
(D) food access and health advocacy orga-
nizations to augment local capacities; 
(3) develop financial products such as loans, 
grants, and credit enhancement tools that can be 
used by partnerships to incentivize and support the 
development and retention of supermarkets and 
other healthy food retailers in underserved areas; 
(4) award Initiative funds to eligible partner-
ships through an annual competitive process in ac-
cordance with section 205(d); 
(5) contract with a national food access organi-
zation to assist in the review of applications from 
partnerships and to provide technical assistance to 
local food access organizations in the proposed part-
nerships; 
(6) award and disburse funds to partnerships or 
eligible local projects in a timely manner; 
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(7) create and meet performance benchmarks 
and reporting guidelines, as approved by the Sec-
retary, including for— 
(A) the amount of capital raised and lever-
aged from financial institutions, partnerships, 
and other resources; 
(B) the geographic diversity of partner-
ships; and 
(C) the proportion of projects funded by 
the partnership that are in severely distressed 
low-income communities; 
(8) develop program guidelines and operating 
procedures for the Initiative, including— 
(A) maximum grant and loan amounts for 
projects; 
(B) eligible uses of funds; 
(C) prudent underwriting criteria; 
(D) performance targets; 
(E) reporting guidelines; 
(F) limits on administrative costs; and 
(G) implementation milestones; 
(9) monitor the performance of partnerships; 
and 
(10) collect data, compile information, and con-
duct such research studies as the national fund man-
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ager determines to be relevant to the successful im-
plementation of the Initiative, including— 
(A) to assess national and local market 
conditions; 
(B) to determine barriers to market entry; 
and 
(C) to identify opportunities for the devel-
opment or retention of supermarkets and other 
healthy food retailers in underserved commu-
nities. 
(c) WORK PLAN.— 
(1) IN GENERAL.—Not later than 45 days after 
the date of receipt of an award, the national fund 
manager shall develop, with guidance from and in 
consultation with the Secretary, and submit to the 
Secretary, a detailed work plan. 
(2) APPROVAL REQUIRED.—The Secretary shall 
review and approve the work plan, program budget, 
and administrative costs under subsection (e)(4)(C) 
prior to entering into an agreement with the na-
tional fund manager to administer the Initiative. 
SEC. 205. ALLOCATION AND USE OF FUNDS. 
(a) ALLOCATION.—The national fund manager 
shall— 
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SMARTINEZ on DSK6TPTVN1PROD with BILLS
(1) allocate at least 70 percent of all funds ap-
propriated for the Initiative for a fiscal year to part-
nerships that are selected based on the criteria de-
scribed in subsection (d); 
(2) use not more than 25 percent of all funds 
appropriated for the Initiative for a fiscal year to es-
tablish regional food hubs; and 
(3) retain the remainder of the funds appro-
priated for the Initiative for a fiscal year to under-
take financing activities described in subsection (c), 
including a reasonable amount for administrative 
costs (not to exceed 5 percent) approved by the Sec-
retary. 
(b) USE OF THE NATIONAL FUNDS BY PARTNERSHIP 
PROGRAMS.— 
(1) IN GENERAL.—As a condition on the receipt 
of funds, each partnership shall use— 
(A) the national funds received from the 
national fund manager under subsection (a)(1) 
to create 1 or more revolving loan programs or 
other revolving pools of capital or other prod-
ucts to facilitate financing of local projects as 
determined by the agreement between the part-
nership and the national fund manager; and 
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SMARTINEZ on DSK6TPTVN1PROD with BILLS
(B) any remaining funds for grants, or, as 
approved, for innovative financing mechanisms. 
(2) LIMITATIONS.— 
(A) IN GENERAL.—Use of funds for ad-
ministrative costs and other purposes shall be— 
(i) limited in accordance with the 
terms of the agreement negotiated between 
the national fund manager and partner-
ships; 
(ii) based on whether administrative 
costs are reasonable, connected to the costs 
of operation, and reflect efficient oper-
ations by the partnership; and 
(iii) determined using criteria includ-
ing geographic coverage, program duration, 
and total funding amount. 
(B) GOAL.—The goal of this paragraph is 
to limit administrative costs to the maximum 
extent practicable, but in no case may the 
amount used for administrative costs exceed 10 
percent of the Federal funds allocated. 
(c) USE OF THE NATIONAL FUNDS BY THE NA-
TIONAL FUND MANAGER.—The national fund manager 
shall use national funds described in subsection (a)(2) to 
undertake financing and other activities to enhance and 
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maximize the effectiveness of the Initiative, as determined 
by the agreement with the Secretary, including— 
(1) attracting other forms of financial assist-
ance to match or leverage the national funds; 
(2) awarding national funds to partnerships in 
accordance with subsection (d); 
(3) creating and managing pools of grant or 
loan capital that blend or leverage national funds 
with other forms of financial assistance, including 
capital in the form of tax credits under section 45D 
of the Internal Revenue Code of 1986, for the ben-
efit of partnerships; 
(4) creating and managing pools of grant or 
loan capital that blend or leverage the national funds 
with other forms of financial assistance, including 
capital in the form of tax credits under section 45D 
of the Internal Revenue Code of 1986, to finance eli-
gible local projects identified by partnerships or the 
national fund manager that have special or unique 
characteristics; 
(5) providing loans or grants directly to eligible 
local projects as matching funds if requested by a 
partnership; 
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(6) providing credit enhancement or other fi-
nancial products and instruments for the benefit of 
partnerships or eligible local projects; 
(7) providing technical assistance; and 
(8) funding reasonable administrative costs ap-
proved by the Secretary. 
(d) CRITERIA FOR AWARDING NATIONAL FUNDS TO 
PARTNERSHIPS.— 
(1) IN GENERAL.—The national fund manager 
shall award national funds to partnerships through 
a competitive process on an annual basis. 
(2) FIRST
ROUND
PRIORITY.—In the first 
round of funding, the national fund manager shall 
give priority to existing partnerships that have de-
monstrable capacity to implement fresh food financ-
ing programs in underserved areas quickly. 
(3) ADDITIONAL
ROUNDS.—Additional rounds 
shall be designed to promote geographic diversity. 
(4) CRITERIA.—In awarding national funds to 
partnerships, the national fund manager shall con-
sider— 
(A) the amount of funds and other re-
sources pledged by a partnership to match or 
leverage national funds; 
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SMARTINEZ on DSK6TPTVN1PROD with BILLS
(B) the degree of State, local, or tribal 
government support of the partnership as evi-
denced by matching grant and loan funds or 
other types of support, such as allocation of 
tax-exempt bonds, loan guarantees, and coordi-
nation of resources from other State or local 
economic development programs; 
(C) the capacity of the partnership to suc-
cessfully develop and manage loan and grant 
programs; 
(D) the lack of supermarkets and other 
healthy food retailers in low- and moderate-in-
come areas that would be served by the part-
nership; 
(E) the experience of the food access or 
community health organization of the partner-
ship in outreach about access to healthy foods 
and local healthy food access issues; 
(F) the degree of community engagement 
and support in the development and retention 
of supermarkets and other healthy food retail-
ers; and 
(G) the contribution of the program of the 
partnership to the overall geographic diversity 
of the Initiative. 
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(e) ADMINISTRATIVE COSTS.— 
(1) IN GENERAL.—Not later than 45 days after 
the date of receipt of an award, the national fund 
manager shall submit to the Secretary for approval 
a 3-year program and operating budget and detailed 
work plan that shall include— 
(A) costs for research and evaluation, tech-
nical assistance, and training; and 
(B) program and operating costs. 
(2) EARNED
REVENUES.—Earned revenues 
from loan fees and interest may be expended on pro-
gram and operating costs in accordance with the 
budget approved by the Secretary. 
(3) BASIS
OF
REVIEW.—The Secretary shall 
base the review under subparagraph (A) on— 
(A) the likelihood of the plan and expendi-
tures to further the purposes of this section; 
and 
(B) whether the administrative costs are 
reasonable, connected to the costs of operation, 
and reflect efficient operations by the national 
fund manager. 
SEC. 206. PARTNERSHIPS. 
(a) IN GENERAL.—Each partnership that receives as-
sistance through the Initiative shall provide financial and 
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SMARTINEZ on DSK6TPTVN1PROD with BILLS
technical assistance to eligible healthy food retailer 
projects in underserved areas within the defined commu-
nities of the partnership. 
(b) ADMINISTRATION.—Each partnership shall des-
ignate a community development financial institution or 
other organization that is capable of administering a loan 
and grant program— 
(1) to execute grant agreements with the na-
tional fund manager; and 
(2) to serve as the manager of local funds. 
(c) RESPONSIBILITIES OF PARTNERSHIPS.—A part-
nership shall— 
(1) raise other forms of financial assistance to 
match the national funds received by the partner-
ship; 
(2) provide marketing and outreach to commu-
nities, the supermarket industry, other healthy food 
retailers, State and local government officials, and 
civic and public interest organizations— 
(A) to solicit applications from underserved 
areas from across the State or locality to be 
served by the partnership; and 
(B) to inform the communities and other 
persons about the availability of grants, loans, 
training, and technical assistance; 
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SMARTINEZ on DSK6TPTVN1PROD with BILLS
(3) review and underwrite projects to determine 
whether— 
(A) a proposed project meets the criteria 
for eligible projects under section ll02; and 
(B) a proposed project meets the criteria 
for priority projects under subsection (g) of 
such section; 
(4) provide technical assistance services to oper-
ators and developers of healthy food retailers; 
(5) track and report outcomes, including— 
(A) the number of jobs created or retained; 
(B) the quantity of healthy food retailer 
space created or retained and the quantity of 
regional food hub capacity developed; and 
(C) such other health and economic indica-
tors as are required by the national fund man-
ager; 
(6) monitor and audit funded projects to ensure 
compliance with the Initiative, the national fund 
manager, and partnership program requirements for 
a period of at least 3 years; 
(7) submit an annual report to the national 
fund manager that describes— 
(A) the activities of the partnership; 
(B) the expenditure of local funds; and 
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SMARTINEZ on DSK6TPTVN1PROD with BILLS
(C) success in meeting performance targets 
and satisfying such other terms and conditions 
as are specified in the agreement between the 
partnership and the national fund manager; 
and 
(8) coordinate with the national fund manager 
for the smooth operation of the Initiative. 
(d) ADMINISTRATIVE COSTS.— 
(1) IN GENERAL.—As a condition on the receipt 
of assistance under this section, each partnership 
shall submit to the national fund manager for ap-
proval a 3-year budget and plan for all program and 
operating costs, including— 
(A) costs for research and evaluation, tech-
nical assistance, and training; and 
(B) administrative and operating costs. 
(2) EARNED
REVENUES.—Earned revenues 
from loan fees and interest may be expended on pro-
gram and operating costs in accordance with the 
budget approved by the national fund manager. 
(3) BASIS
OF
REVIEW.—The national fund 
manager shall base the review of the budget and 
plan under paragraph (1) on the likelihood of the 
budget and plan to further the purposes of the Ini-
tiative. 
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SMARTINEZ on DSK6TPTVN1PROD with BILLS
SEC. 207. EVALUATION AND MONITORING. 
(a) IN GENERAL.—Program evaluation and financial 
audits shall occur at all levels of the Initiative to ensure 
that— 
(1) national and local funds are used properly; 
and 
(2) the objectives of the Initiative are met. 
(b) PROGRAM EVALUATION
AND FINANCIAL AU-
DITS.— 
(1) IN GENERAL.—The Secretary shall— 
(A) conduct periodic program evaluations 
and financial audits of the national fund man-
ager, partnerships, and projects funded by the 
Initiative; and 
(B) share with the national fund manager 
the results of the evaluations and audits. 
(2) FUNDED PROJECTS.—The Secretary or the 
national fund manager shall evaluate partnerships to 
assess the health and economic impacts of projects 
funded by the Initiative. 
(3) OTHER IMPACTS.— 
(A) SECRETARY OF HEALTH AND HUMAN 
SERVICES.—The Secretary of Health and 
Human Services shall conduct research studies 
and evaluate the health impacts of the Initia-
tive. 
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SMARTINEZ on DSK6TPTVN1PROD with BILLS
(B) COMMUNITY
DEVELOPMENT
FINAN-
CIAL
INSTITUTIONS.—Representatives of the 
community development financial institutions 
shall conduct research studies and evaluate the 
economic impacts of the Initiative. 
(4) PARTNERSHIPS.— 
(A) 
IN
GENERAL.—Each 
partnership 
shall— 
(i) conduct periodic administrative 
and financial audits of projects funded by 
the Initiative; and 
(ii) share with the national fund man-
ager the results of the audits. 
(B) FAILURE
OF
PARTNERSHIP.—In a 
case in which a partnership fails, the national 
fund manager shall take over the portfolio of 
the failed partnership. 
SEC. 208. ADMINISTRATIVE PROVISIONS. 
Not later than 180 days after the date of enactment 
of this Act, the Secretary shall promulgate such regula-
tions as may be necessary to carry out the Initiative, in-
cluding regulations— 
(1) for the conduct of a performance evaluation 
at the end of the initial 5-year period; 
(2) to terminate the contract for cause; and 
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SMARTINEZ on DSK6TPTVN1PROD with BILLS
(3) to extend the contract for an additional 5- 
year period. 
SEC. 209. AUTHORIZATION OF APPROPRIATIONS. 
There is authorized to be appropriated to the Sec-
retary to carry out the Initiative $500,000,000. Amounts 
appropriated pursuant to this authorization of appropria-
tion shall remain available until expended. 
TITLE 
III—DEVELOPMENT 
OF 
SUSTAINABLE URBAN AGRI-
CULTURE 
SEC. 301. COMMUNITY GARDENING GRANT PROGRAM. 
(a) PROGRAM ESTABLISHED.—From the amounts 
appropriated to carry out this section, the Secretary of 
Agriculture shall award grants to eligible entities to ex-
pand, establish, or maintain urban and Native American 
community gardens. 
(b) APPLICATION.—In order to receive a grant under 
this section, an eligible entity shall submit to the Secretary 
an application at such time, in such manner, and con-
taining such information as the Secretary may require, in-
cluding— 
(1) an assurance that priority for hiring for 
jobs created by the expansion, establishment, or 
maintenance of an urban community garden funded 
with a grant received under this section will be given 
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SMARTINEZ on DSK6TPTVN1PROD with BILLS
to individuals who reside in the community where 
the garden is located; and 
(2) a demonstration that the eligible entity is 
committed to providing non-Federal financial or in- 
kind support (such as, but not limited to, providing 
a water supply) for the community garden for which 
the entity receives funds under this section. 
(c) DEFINITIONS.—In this section: 
(1) ELIGIBLE ENTITY.—The term ‘‘eligible enti-
ty’’ means— 
(A) a for profit or nonprofit organization; 
or 
(B) a unit of general local government, or 
tribal government, located on tribal land or in 
a low-income community. 
(2) LOW-INCOME COMMUNITY.—The term ‘‘low- 
income community’’ has the meaning given such 
term by the Secretary of Agriculture. 
(3) UNIT OF GENERAL LOCAL GOVERNMENT.— 
The term ‘‘unit of general local government’’ means 
any city, county, town, township, parish, village, or 
other general purpose political subdivision of a 
State. 
(4) STATE.—The term ‘‘State’’ includes, in ad-
dition to the several States of the United States, the 
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Commonwealth of Puerto Rico, the District of Co-
lumbia, the Virgin Islands, Guam, American Samoa, 
and the Commonwealth of the Northern Mariana Is-
lands. 
SEC. 302. GRANTS FOR CONVERSION OF ABANDONED AND 
FORECLOSED PROPERTY TO URBAN AGRI-
CULTURAL USES. 
(a) GRANTS AUTHORIZED.—The Secretary of Agri-
culture may make grants on a competitive basis to assist 
an eligible entity described in subsection (b)— 
(1) to acquire, by purchase or lease, abandoned 
or foreclosed real property in an urban area where 
there is limited or no agricultural production; and 
(2) to convert the property to an agricultural 
use authorized by subsection (c). 
(b) ELIGIBLE ENTITIES DESCRIBED.—Grants may 
be made under this section to a community organization, 
municipality, institution of higher education, local school 
district, nonprofit organization, or for-profit entity. 
(c) AUTHORIZED AGRICULTURAL USES.—Real prop-
erty acquired using grant funds may be used for any of 
the following purposes: 
(1) Projects to encourage the production of 
local foods in an urban area. 
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SMARTINEZ on DSK6TPTVN1PROD with BILLS
(2) Projects to strengthen local food distribu-
tion systems in an urban area. 
(3) Projects to create sustainable food systems 
in an urban area. 
(4) Projects to create or expand the opportuni-
ties to consume fresh fruits and vegetables in an 
urban area. 
(5) Projects to promote agricultural processing 
in an urban area. 
(6) Projects to encourage recipients of Federal 
and State domestic food assistance programs to pur-
chase locally grown or produced foods. 
(7) Projects to promote education and training 
related to best practices for agricultural production 
in an urban area. 
(8) Projects to promote education initiatives 
that promote the nutritional benefits of consuming 
locally produced foods. 
(9) Other projects to promote economic develop-
ment through agricultural production in an urban 
area. 
(d) GRANT LIMITATION.—The amount of a grant 
made under this section shall not exceed $500,000. 
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SMARTINEZ on DSK6TPTVN1PROD with BILLS
(e) AUTHORIZATION
OF APPROPRIATIONS.—There 
are authorized to be appropriated to the Secretary such 
amounts as may be necessary to carry out this section. 
SEC. 303. EXPANSION OF HARVESTCORPS PROGRAM. 
(a) 
AUTHORITY
TO
FUND
HARVESTCORPS 
GRANTS.—The Secretary of Agriculture may enter into an 
agreement with the Director of the Corporation for Na-
tional and Community Service, under which the Secretary 
will provide funds to the Corporation for National and 
Community Service to make up to 10 annual grants under 
section 121 of the National and Community Service Act 
of 1990 (42 U.S.C. 12571) to support the creation of the 
HarvestCorps program— 
(1) to alleviate poverty and meet the food needs 
of low-income people by increasing their access to 
supportive programs, such as the Summer Food 
Service Program, the Supplemental Nutrition Assist-
ance Program, tax credits, and other programs, that 
increase the revenue and economic health of the low- 
income communities; and 
(2) to engage community resources and pro-
mote partnerships that address local food access 
issues. 
(b) GRANT PROCESS; ELIMINATION OF COST-SHAR-
ING REQUIREMENTS.— 
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SMARTINEZ on DSK6TPTVN1PROD with BILLS
(1) COMPETITIVE PROCESS.—Grants funded by 
the Secretary under subsection (a) shall be awarded 
by the Corporation on a competitive basis. The Cor-
poration shall extend a preference to eligible entities 
(as described in section 121(a) of the National and 
Community Service Act of 1990 (42 U.S.C. 
12571(a))) operating in the 10 States with the high-
est food insecurity rates, as measured by the De-
partment of Agriculture. 
(2) GRANT
AMOUNT; 
DURATION.—A grant 
funded by the Secretary under subsection (a) may 
not exceed $1,000,000 per year. The grant recipient 
may not receive a grant under this section for more 
than three years. 
(3) MATCHING
FUNDS.—The matching funds 
requirement of section 121(e) of the National and 
Community Service Act of 1990 (42 U.S.C. 
12571(e)) shall not apply to grants funded by the 
Secretary under subsection (a). 
(c) STATEWIDE USE OF GRANT.—The recipient of a 
grant funded by the Secretary under subsection (a) shall 
agree to provide services on a statewide basis. 
(d) SHARING INFORMATION.—The Secretary and the 
Corporation may provide for the sharing of information 
concerning HarvestCorps projects through publications, 
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conferences, and other appropriate forums, including shar-
ing information with researchers, practitioners, and other 
interested parties. 
(e) AUTHORIZATION OF APPROPRIATIONS.—There is 
authorized to be appropriated to the Secretary of Agri-
culture $10,000,000 for each of fiscal years 2014, 2015, 
and 2016 to carry out this section. 
SEC. 304. ACQUISITION OF PUBLICALLY OWNED LAND AND 
CONVERSION TO URBAN FARMS AND COMMU-
NITY GARDENS. 
(a) DEFINITIONS.—In this section: 
(1) FOOD DESERT.—The term ‘‘food desert’’ 
has the meaning given the term ‘‘underserved com-
munity’’ in section 25(a)(3) of the Food and Nutri-
tion Act of 2008 (7 U.S.C. 2034(a)(3)). 
(2) COMMUNITY
LAND
TRUST.—The term 
‘‘community land trust’’ means a community hous-
ing development organization, as such term is de-
fined in section 104(6) of the Cranston-Gonzalez 
National Affordable Housing Act (42 U.S.C. 
12704(6)), except that the requirements under sub-
paragraphs (C) and (D) of such section shall not 
apply for purposes of this section. 
(b) GRANTS AUTHORIZED.—The Secretary of Agri-
culture shall make competitive grants to nonprofit organi-
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zations, including community land trusts, to assist the or-
ganizations— 
(1) to purchase publically owned land in a food 
desert; and 
(2) to convert the land for use as an urban 
farm or community garden for the production of af-
fordable, nutritious foods. 
(c) MATCHING FUNDS REQUIREMENT.—As a condi-
tion of receiving a grant under this section, the nonprofit 
organization shall provide an amount of funds equal to 
not less than the amount of the grant. 
(d) AUTHORIZATION OF APPROPRIATIONS.—There is 
authorized to be appropriated to the Secretary of Agri-
culture such amounts as may be necessary to carry out 
this section. 
SEC. 305. URBAN AGRICULTURAL WORKFORCE TRAINING 
PILOT PROGRAM. 
(a) AUTHORITY.—The Secretary of Agriculture, in 
consultation with the Secretary of Labor, shall award not 
more than 25 grants to eligible entities to develop and im-
plement urban agricultural workforce training programs. 
(b) GRANTS.— 
(1) APPLICATION.—An eligible entity seeking a 
grant under this section shall submit to the Sec-
retary of Agriculture an application containing— 
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SMARTINEZ on DSK6TPTVN1PROD with BILLS
(A) a description of the urban agricultural 
workforce training program such entity intends 
to develop and implement using grant funds; 
and 
(B) such other information as the Sec-
retary may require. 
(2) EQUAL AMOUNTS.—The Secretary of Agri-
culture shall award grants under this section in 
equal amounts. 
(c) TERM OF GRANTS; CONDITION.— 
(1) TERM.—The term of a grant awarded 
under this section shall be two years. 
(2) CONDITION.— 
(A) TWO-YEAR
AVAILABILITY
OF
GRANT 
FUNDS.—Each recipient of a grant under this 
section shall return to the Secretary of Agri-
culture any unused portion of such grant at the 
end of the two-year period beginning on the 
date the grant was awarded, together with any 
earnings on such unused portion. 
(B) AMOUNTS RETURNED.—The Secretary 
of Agriculture shall return to the general fund 
of the Treasury of the United States any 
amounts returned pursuant to subparagraph 
(A). 
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SMARTINEZ on DSK6TPTVN1PROD with BILLS
(d) USE OF GRANTS.— 
(1) IN GENERAL.—An eligible entity that re-
ceives a grant under this section may only use grant 
funds for the following purposes: 
(A) To develop and implement an urban 
agricultural workforce training program in ac-
cordance with paragraph (2). 
(B) To provide funding to trainees to de-
fray the start-up costs for new urban agricul-
tural businesses of such trainees. 
(2) URBAN
AGRICULTURAL
ACTIVITIES.—An 
urban agricultural workforce training program devel-
oped and implemented by an eligible entity receiving 
a grant under this section shall provide training for 
individuals to carry out any of the following urban 
agricultural activities: 
(A) Designing, constructing, and maintain-
ing biocellar structures. 
(B) Community gardening. 
(C) Urban farming. 
(D) Viticulture. 
(E) Agricultural education. 
(F) Rehabilitating land for agricultural 
use. 
(G) Developing farmers’ markets. 
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SMARTINEZ on DSK6TPTVN1PROD with BILLS
(H) Transporting fresh, local food. 
(I) Developing mobile pantries for fresh 
produce. 
(3) LIMITATION.—Not less than 30 percent of 
the amount received through a grant awarded under 
this section shall be used to provide the funding de-
scribed in paragraph (1)(B). 
(e) DEFINITIONS.—In this section: 
(1) ELIGIBLE ENTITY.—The term ‘‘eligible enti-
ty’’ means— 
(A) a unit of general local government lo-
cated in an urban area (as defined by the Bu-
reau of the Census); 
(B) a tribal government; 
(C) an accredited college or university; or 
(D) a nonprofit organization. 
(2) STATE.—The term ‘‘State’’ includes, in ad-
dition to the several States of the United States, the 
Commonwealth of Puerto Rico, the District of Co-
lumbia, the Virgin Islands, Guam, American Samoa, 
and the Commonwealth of the Northern Mariana Is-
lands. 
(3) UNIT OF GENERAL LOCAL GOVERNMENT.— 
The term ‘‘unit of general local government’’ means 
any city, county, town, township, parish, village, or 
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other general purpose political subdivision of a 
State. 
(f) AUTHORIZATION
OF APPROPRIATIONS.—There 
are authorized to be appropriated to carry out this section 
$5,000,000 for each of fiscal years 2014 through 2018. 
SEC. 306. URBAN AGRICULTURE DEVELOPMENT GRANTS 
PROGRAM. 
(a) IN GENERAL.—The Secretary of Agriculture may 
make grants to persons to cover the cost of establishing 
or operating a farm, garden, or aquacultural or other facil-
ity, in an urban area, for the production of an agricultural 
or aquacultural product or the raising of livestock for sale 
exclusively in the urban area. 
(b) LIMITATIONS ON USE OF GRANT.—A person to 
whom a grant is made under subsection (a) shall not use 
the grant for any expense other than for community edu-
cational programming, transportation, equipment, utili-
ties, construction, rehabilitation of property, feed, or oper-
ating expenses (excluding salaries). 
(c) LIMITATIONS
ON AUTHORIZATION
OF APPRO-
PRIATIONS.—For grants under subsection (a), there are 
authorized to be appropriated to the Secretary of Agri-
culture not more than $8,000,000,000 for each fiscal year. 
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SEC. 307. CLEAN AND SAFE DRINKING WATER FOR URBAN 
AREAS AND WATERWAYS. 
Section 1234(c)(3)(B) of the Food Security Act of 
1985 (16 U.S.C. 3834(c)(3)(B)) is amended by inserting 
‘‘, or the extent to which water quality in a metropolitan 
statistical area (as defined by the Director of the Office 
of Management and Budget) downstream from the land 
that is the subject of the contract offer may be improved’’ 
before the period at the end. 
SEC. 308. EXTENSION OF ASSISTANCE TO SOCIALLY DIS-
ADVANTAGED URBAN FARMERS AND RANCH-
ERS. 
(a) ELIGIBLE LAND.—Section 1240A(1)(B)(vi) of 
the Food Security Act of 1985 (16 U.S.C. 3839aa– 
1(1)(B)(vi)) is amended by inserting ‘‘urban agricultural 
land,’’ before ‘‘and agricultural land’’. 
(b) INCREASED
PAYMENTS
FOR
CERTAIN
PRO-
DUCERS.—Section 1240B(d)(4)(A) of the Food Security 
Act of 1985 (16 U.S.C. 3839aa–2(d)(4)(A)) is amended 
by inserting ‘‘, including a socially disadvantaged farmer 
engaged in farming in an urban area of 50,000 or more 
people,’’ before ‘‘or a beginning farmer or rancher,’’. 
(c) ASSISTANCE TO CERTAIN FARMERS OR RANCH-
ERS
FOR
CONSERVATION
ACCESS.—Section 
1241(g)(1)(B) of the Food Security Act of 1985 (16 
U.S.C. 3841(g)(1)(B)) is amended by inserting ‘‘, includ-
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ing socially disadvantaged farmers engaged in farming in 
an urban area of 50,000 or more people’’ before the period 
at the end. 
SEC. 309. URBAN ENTREPRENEUR AND MICROENTERPRISE 
ASSISTANCE PROGRAM. 
Subtitle D of the Consolidated Farm and Rural De-
velopment Act is amended by inserting after section 365 
(7 U.S.C. 2008) the following: 
‘‘SEC. 366. URBAN ENTREPRENEUR AND MICROENTER-
PRISE ASSISTANCE PROGRAM. 
‘‘(a) DEFINITIONS.—In this section: 
‘‘(1) ECONOMICALLY
DISADVANTAGED
MICRO-
ENTREPRENEUR.—The term ‘economically disadvan-
taged microentrepreneur’ means an owner, majority 
owner, or developer of a microenterprise that has the 
ability to compete in the private sector but has been 
impaired because of diminished capital and credit 
opportunities, as compared to other microentre-
preneurs in the industry. 
‘‘(2) INDIAN TRIBE.—The term ‘Indian tribe’ 
has the meaning given the term in section 4 of the 
Indian Self-Determination and Education Assistance 
Act (25 U.S.C. 450b). 
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‘‘(3) INTERMEDIARY.—The term ‘intermediary’ 
means a private, nonprofit entity that provides as-
sistance— 
‘‘(A) to a microenterprise development or-
ganization; or 
‘‘(B) for a microenterprise development 
program. 
‘‘(4) LOW-INCOME INDIVIDUAL.—The term low- 
income individual means an individual with an in-
come (adjusted for family size) of not more than the 
greatest of— 
‘‘(A) 80 percent of median income of an 
area; 
‘‘(B) 80 percent of the statewide non-met-
ropolitan area median income; or 
‘‘(C) 80 percent of the national median in-
come. 
‘‘(5) MICROCREDIT.—The term ‘microcredit’ 
means a business loan or loan guarantee of not more 
than $50,000 that is provided to an urban entre-
preneur. 
‘‘(6) MICROENTERPRISE.—The term ‘microen-
terprise’ means— 
‘‘(A) a sole proprietorship; or 
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‘‘(B) a business entity with not more than 
10 full-time-equivalent employees. 
‘‘(7) MICROENTERPRISE DEVELOPMENT ORGA-
NIZATION.— 
‘‘(A) IN GENERAL.—The term ‘microenter-
prise development organization’ means a pri-
vate, nonprofit entity that— 
‘‘(i) provides training and technical 
assistance to urban entrepreneurs; and 
‘‘(ii) facilitates access to capital or an-
other service described in subsection (b) 
for urban entrepreneurs. 
‘‘(B) INCLUSIONS.—The term ‘microenter-
prise development organization’ includes an or-
ganization described in subparagraph (A) with 
a demonstrated record of delivering services to 
economically disadvantaged microentrepreneurs, 
or an effective plan to develop a program to de-
liver microenterprise services to urban entre-
preneurs effectively, as determined by the Sec-
retary. 
‘‘(8) MICROENTERPRISE
DEVELOPMENT
PRO-
GRAM.—The term ‘microenterprise development or-
ganization’ means a program administered by an or-
ganization serving an urban area. 
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‘‘(9) MICROENTREPRENEUR.—The term ‘micro-
entrepreneur’ means the owner, operator, or devel-
oper of a microenterprise. 
‘‘(10) PROGRAM.—The term ‘program’ means 
the urban entrepreneur and microenterprise program 
established under subsection (b)(1). 
‘‘(11) QUALIFIED
ORGANIZATION.—The term 
‘qualified organization’ means— 
‘‘(A) a microenterprise development orga-
nization or microenterprise development pro-
gram that has a demonstrated record of deliv-
ering microenterprise services to urban entre-
preneurs, or an effective plan to develop a pro-
gram to deliver microenterprise services to 
urban entrepreneurs effectively, as determined 
by the Secretary; 
‘‘(B) an intermediary that has a dem-
onstrated record of delivery assistance to micro-
enterprise development organizations or micro-
enterprise development programs; 
‘‘(C) a microenterprise development orga-
nization or microenterprise development pro-
gram that serves urban entrepreneurs; 
‘‘(D) an Indian tribe, the tribal govern-
ment of which certifies to the Secretary that no 
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microenterprise development organization or 
microenterprise development program exists 
under the jurisdiction of the Indian tribe; 
‘‘(E) a group of 2 or more organizations or 
Indian tribes described in any of subparagraphs 
(A) through (D) that agree to act jointly as a 
qualified organization under this section; or 
‘‘(F) for purposes of subsection (b), a pub-
lic college or university. 
‘‘(12) URBAN
AREA.—The term ‘urban area’ 
means any community that is urban in character 
and has— 
‘‘(A) a population of more than 25,000 in-
dividuals; or 
‘‘(B) an average population density of at 
least 1,000 individuals per square mile. 
‘‘(13) URBAN CAPACITY BUILDING SERVICE.— 
The term ‘urban capacity building service’ means a 
service provided to an organization that— 
‘‘(A) is, or is in the process of becoming, 
a microenterprise development organization or 
microenterprise development program; and 
‘‘(B) serves urban areas for the purpose of 
enhancing the ability of the organization to pro-
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vide training, technical assistance, and other re-
lated services to urban entrepreneurs. 
‘‘(14) 
URBAN
ENTREPRENEUR.—The 
term 
‘urban entrepreneur’ means a microentrepreneur, or 
prospective microentrepreneur— 
‘‘(A) the principal place of business of 
which is in a urban area; and 
‘‘(B) that is unable to obtain sufficient 
training, technical assistance, or microcredit 
elsewhere, as determined by the Secretary. 
‘‘(15) 
SECRETARY.—The 
term 
‘Secretary’ 
means the Secretary of Agriculture, acting through 
the Rural Business-Cooperative Service. 
‘‘(16) TRIBAL GOVERNMENT.—The term ‘tribal 
government’ means the governing body of an Indian 
tribe. 
‘‘(b) URBAN ENTREPRENEURSHIP
AND MICROEN-
TERPRISE PROGRAM.— 
‘‘(1) ESTABLISHMENT.—The Secretary shall es-
tablish an urban entrepreneurship and microenter-
prise program. 
‘‘(2) PURPOSE.—The purpose of the program 
shall be to provide low-income individuals and mod-
erate-income individuals with— 
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‘‘(A) the skills necessary to establish new 
small businesses in urban areas; and 
‘‘(B) continuing technical and financial as-
sistance as individuals and business starting or 
operating small businesses. 
‘‘(3) GRANTS.— 
‘‘(A) IN
GENERAL.—The Secretary may 
make a grant under the program to a qualified 
organization— 
‘‘(i) to provide training, operational 
support, or an urban capacity building 
service to a qualified organization to assist 
the qualified organization in developing mi-
croenterprise training, technical assistance, 
market development assistance, and other 
related services, primarily for business with 
5 or fewer full-time-equivalent employees; 
‘‘(ii) to assist in researching and de-
veloping the best practices in delivering 
training, technical assistance, and micro-
credit to urban entrepreneurs; and 
‘‘(iii) to carry out such other projects 
and activities as the Secretary determines 
to be consistent with the purposes of this 
section. 
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‘‘(B) SUBGRANTS.—Subject to such regu-
lations as the Secretary may promulgate, a 
qualified organization that receives a grant 
under this paragraph may use the grant to pro-
vide assistance to other qualified organizations, 
such as small or emerging qualified organiza-
tions. 
‘‘(C) DIVERSITY.—In making grants under 
this paragraph, the Secretary shall ensure, to 
the maximum extent practicable, that grant re-
cipients include qualified organizations— 
‘‘(i) of varying sizes; and 
‘‘(ii) that serve racially- and eth-
nically-diverse populations. 
‘‘(D) COST SHARING.— 
‘‘(i) FEDERAL SHARE.—The Federal 
share of the cost of a project carried out 
using funds from a grant made under this 
paragraph shall be 75 percent. 
‘‘(ii) 
FORM
OF
NON-FEDERAL 
SHARE.—The non-Federal share of the 
cost of a project described in clause (i) 
may be provided— 
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‘‘(I) in cash (including through 
fees, grants (including community de-
velopment block grants), and gifts); or 
‘‘(II) in kind. 
‘‘(4) URBAN MICROLOAN PROGRAM.— 
‘‘(A) ESTABLISHMENT.—In carrying out 
the program, the Secretary may carry out an 
urban microloan program. 
‘‘(B) PURPOSE.—The purpose of the 
urban microloan program shall be to provide 
technical and financial assistance to sole propri-
etorships and small businesses located in urban 
areas with a particular focus on those busi-
nesses with 5 or fewer full-time equivalent em-
ployees. 
‘‘(C) AUTHORITY OF SECRETARY.—In car-
rying out the urban microloan program, the 
Secretary may— 
‘‘(i) make direct loans to qualified or-
ganizations for the purpose of making 
short-term, fixed interest rate microloans 
to startup, newly established, and growing 
urban microbusiness concerns; and 
‘‘(ii) in conjunction with those loans, 
provide grants in accordance with subpara-
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graph (E) to those qualified organizations 
for the purpose of providing intensive mar-
keting, management, and technical assist-
ance to small business concerns that are 
borrowers under this paragraph. 
‘‘(D) LOAN DURATION; INTEREST RATES; 
CONDITIONS.— 
‘‘(i) LOAN DURATION.—A loan made 
by the Secretary under this paragraph 
shall be for a term of 20 years. 
‘‘(ii) APPLICABLE INTEREST RATES.— 
A loan made by the Secretary under this 
paragraph to a qualified organization shall 
bear an annual interest rate of at least 1 
percent. 
‘‘(iii) DEFERRAL
OF
INTEREST
AND 
PRINCIPAL.—The Secretary may permit 
the deferral of payments, for principal and 
interest, on a loan made under this para-
graph for a period of not more than 2 
years, beginning on the date on which the 
loan was made. 
‘‘(E) GRANT AMOUNTS.— 
‘‘(i) IN GENERAL.—Except as other-
wise provided in this section, each qualified 
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organization that receives a loan under this 
paragraph shall be eligible to receive a 
grant to provide marketing, management, 
and technical assistance to small business 
concerns that are borrowers or potential 
borrowers under this subsection. 
‘‘(ii) MAXIMUM
AMOUNT
OF
GRANT 
FOR
MICROENTERPRISE
DEVELOPMENT 
ORGANIZATIONS.—Each 
microenterprise 
development organization that receives a 
loan under this paragraph shall receive an 
annual grant in an amount equal to not 
more than 25 percent of the total out-
standing balance of loans made to the mi-
croenterprise 
development 
organization 
under this paragraph, as of the date of 
provision of the grant. 
‘‘(iii) MATCHING REQUIREMENT.— 
‘‘(I) IN GENERAL.—As a condi-
tion of any grant made to a qualified 
organization under this subparagraph, 
the Secretary shall require the quali-
fied organization to match not less 
than 15 percent of the total amount 
of the grant. 
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‘‘(II) SOURCES.—In addition to 
cash from non-Federal sources, a 
matching share provided by the quali-
fied organization may include indirect 
costs or in-kind contributions funded 
under non-Federal programs. 
‘‘(c) ADMINISTRATIVE EXPENSES.—Not more than 
10 percent of assistance received by a qualified organiza-
tion for a fiscal year under this section may be used to 
pay administrative expenses. 
‘‘(d) FUNDING.— 
‘‘(1) IN
GENERAL.—Not later than 30 days 
after the date of enactment of this section, and on 
October 1, 2013, and each October 1 thereafter 
through October 1, 2017, out of any funds in the 
Treasury not otherwise appropriated, the Secretary 
of the Treasury shall transfer to the Secretary to 
carry out this section $50,000,000, to remain avail-
able until expended. 
‘‘(2) ALLOCATION OF FUNDS.—Of the amount 
made available by paragraph (1) for each fiscal 
year— 
‘‘(A) not less than $30,000,000 shall be 
available for use in carrying out subsection 
(b)(3); and 
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‘‘(B) not less than $20,000,000 shall be 
available for use in carrying out subsection 
(b)(4), of which not more than $7,000,000 shall 
be used to support direct loans. 
‘‘(C) RECEIPT
AND
ACCEPTANCE.—The 
Secretary shall be entitled to receive, shall ac-
cept, and shall use to carry out this section the 
funds transferred under paragraph (1), without 
further appropriation.’’. 
SEC. 310. LOCAL FARM BUSINESS AND MARKET GARDEN 
COMPETITIVE LOAN PROGRAM. 
(a) DEFINITIONS.—In this section: 
(1) AGRICULTURAL
COMMODITY.—The term 
‘‘agricultural commodity’’ has the meaning given the 
term in section 102 of the Agricultural Trade Act of 
1978 (7 U.S.C. 5602). 
(2) ELIGIBLE
LENDING
ENTITY.—The term 
‘‘eligible lending entity’’ means a government agen-
cy, nonprofit organization, or any other entity that 
the Secretary designates to finance and facilitate the 
development of a local farm business project or mar-
ket garden project. 
(3) ELIGIBLE PRODUCER.—The term ‘‘eligible 
producer’’ means an individual or group of individ-
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uals who carry out a local farm business project or 
market garden project. 
(4) FOOD DESERT.—The term ‘‘food desert’’ 
has the meaning given the term in section 7527(a) 
of the Food, Conservation, and Energy Act of 2008 
(Public Law 110–246; 122 Stat. 2039). 
(5) LOCAL
FARM
BUSINESS
PROJECT.—The 
term ‘‘local farm business project’’ means a project 
on a farm or ranch that— 
(A) is for the production of an agricultural 
commodity for local markets in the local service 
area; and 
(B) is located on 1 or more property lots, 
the cumulative acreage of which shall be more 
than 1 acre. 
(6) LOCAL
SERVICE
AREA.—The term ‘‘local 
service area’’ means an area consisting of a certain 
mile radius (as determined by the Secretary) from 
the physical location of production by an eligible 
local farm business or market garden project. 
(7) MARKET
GARDEN
PROJECT.—The term 
‘‘market garden project’’ means a project that— 
(A) is for the production of an agricultural 
commodity for local markets in the local service 
area; and 
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(B) is located on 1 or more property lots 
(regardless of the population density of the area 
in which the property lots are located), the cu-
mulative acreage of which shall be more than 
1⁄4 acre. 
(8) REVOLVING LOAN FUND.—The term ‘‘re-
volving loan fund’’ means a revolving loan fund es-
tablished by an eligible lending entity as described in 
subsection (c). 
(9) SECRETARY.—The term ‘‘Secretary’’ means 
the Secretary of Agriculture. 
(10) SOCIALLY
DISADVANTAGED
FARMER
OR 
RANCHER.—The term ‘‘socially disadvantaged farm-
er or rancher’’ has the meaning given the term in 
section 355(e) of the Consolidated Farm and Rural 
Development Act (7 U.S.C. 2003(e)). 
(11) SPECIALTY
CROP.—The term ‘‘specialty 
crop’’ has the meaning given the term in section 3 
of the Specialty Crops Competitiveness Act of 2004 
(7 U.S.C. 1621 note; Public Law 108–465). 
(12) SUSTAINABLE
AGRICULTURE.—The term 
‘‘sustainable agriculture’’ has the meaning given the 
term in section 1404 of the National Agricultural 
Research, Extension, and Teaching Policy Act of 
1977 (7 U.S.C. 3103). 
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(b) COMPETITIVE LOAN PROGRAM FOR ELIGIBLE 
LENDING ENTITIES.— 
(1) IN GENERAL.—To support new entrepre-
neurship and job creation, the Secretary shall estab-
lish a local farm business and market garden com-
petitive loan program under which the Secretary 
shall make available to eligible lending entities loans 
to develop revolving loan funds to assist— 
(A) eligible producers in establishing local 
farm business projects or market garden 
projects that will locally produce fresh foods; 
and 
(B) local farm business projects and mar-
ket garden projects to create local employment 
opportunities by— 
(i) increasing farm and garden income 
by connecting producers and consumers; 
(ii) creating more reliable local food 
systems; 
(iii) diversifying food production; 
(iv) increasing consumer access to 
fresh, local healthful foods produced by 
local farms, ranches, and market gardens 
in urban, suburban, or rural areas; 
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SMARTINEZ on DSK6TPTVN1PROD with BILLS
(v) supporting nutrition education 
that incorporates participation of school 
children in farm- and garden-based agri-
cultural education activities; and 
(vi) preserving farmland. 
(2) ELIGIBILITY.—To be eligible to receive a 
loan under the program established under paragraph 
(1), an eligible lending entity shall submit to the 
Secretary an application at such time, in such form, 
and containing such information as the Secretary 
may require. 
(3) SELECTION CRITERIA.— 
(A) APPROVAL.—Not later than 1 year 
after the date of enactment of this section and 
in accordance with this paragraph, the Sec-
retary shall, on a competitive basis, begin as-
sessing and approving such applications re-
ceived under paragraph (2) as the Secretary 
considers appropriate. 
(B) CRITERIA.—In considering a loan ap-
plication received under paragraph (2), the Sec-
retary shall— 
(i) evaluate the extent to which the 
application demonstrates the ability of the 
eligible lending entity— 
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SMARTINEZ on DSK6TPTVN1PROD with BILLS
(I) to manage, market, and ad-
minister a revolving loan fund; 
(II) to assist local eligible pro-
ducers to successfully meet local serv-
ice area opportunities; 
(III) to work with partners to 
provide technical support to eligible 
local farm business projects and mar-
ket garden projects; 
(IV) to recruit, educate, and as-
sist local producers to advance local 
farming and ranching opportunities 
that meet local service area needs; 
and 
(V) subject to paragraph (5), to 
provide matching funds in the form of 
cash or in-kind services to properly 
implement and manage the revolving 
loan fund; 
(ii) assess— 
(I) the number and type of local 
farm business projects and market 
garden projects to be affected by local 
farm business project loan funding; 
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SMARTINEZ on DSK6TPTVN1PROD with BILLS
(II) the number of new jobs and 
eligible local farm business projects 
and market garden projects to be cre-
ated by the revolving loan fund; 
(III) the ability of an eligible 
local farm business project or market 
garden project— 
(aa) to preserve farmland 
through economically and envi-
ronmentally 
sustainable 
agri-
culture practices (as determined 
by the Secretary); and 
(bb) to serve schools and in-
stitutions with a high proportion 
of students who are eligible for 
free or reduced price lunches 
under the Richard B. Russell Na-
tional School Lunch Act (42 
U.S.C. 1751 et seq.); 
(IV) the degree to which an eligi-
ble local farm business project or mar-
ket garden project— 
(aa) incorporates experien-
tial nutrition education; 
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SMARTINEZ on DSK6TPTVN1PROD with BILLS
(bb) demonstrates the poten-
tial positive economic impact for 
the local economy; 
(cc) demonstrates environ-
mentally sustainable agriculture 
practices; and 
(dd) demonstrates a collabo-
ration between schools or edu-
cational institutions, nongovern-
mental organizations, producer 
groups, and other community 
and business partners; and 
(V) the market opportunity for 
eligible local farm business projects or 
market garden projects to sell prod-
ucts in the local community; and 
(iii) consider any other factors that 
the Secretary determines to be appropriate. 
(C) REGIONAL
BALANCE.—To the max-
imum extent practicable, in awarding loans 
under this section, the Secretary shall ensure 
that loan recipients— 
(i) are geographically diverse; 
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(ii) serve clients targeted by the loan 
program, including socially disadvantaged 
farmers or ranchers; 
(iii) serve clients located in areas with 
a variety of population densities, including 
rural, suburban, urban, and tribal areas; 
and 
(iv) identify and serve food deserts 
within the local service area. 
(D) PRIORITY.— 
(i) IN GENERAL.—In considering loan 
applications received under paragraph (2), 
the Secretary shall give priority to applica-
tions that demonstrate the ability and will-
ingness of the eligible lending entity— 
(I) to serve clients targeted by 
the program, including, as appro-
priate, socially disadvantaged farmers 
or ranchers; 
(II) to assist with the financial 
management aspects of specialty crop 
farming and other types of local agri-
cultural projects; and 
(III) to address the nutritional 
needs of an underserved area, as de-
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SMARTINEZ on DSK6TPTVN1PROD with BILLS
termined in accordance with clause 
(ii). 
(ii) UNDERSERVED AREAS.—In deter-
mining whether an area is an underserved 
area, the Secretary shall consider— 
(I) population density; 
(II) below-average supermarket 
density or sales; 
(III) the rate of ownership of 
motor vehicles; and 
(IV) geographical or physical 
barriers, such as highways, moun-
tains, major parks, or bodies of water. 
(4) LOAN TERMS FOR ELIGIBLE LENDING ENTI-
TIES.— 
(A) IN GENERAL.—For each fiscal year for 
which the Secretary makes a loan to an eligible 
lending entity under this subsection, the loan 
shall— 
(i) be in an amount that is not less 
than 
$200,000 
and 
not 
more 
than 
$1,000,000; and 
(ii) be used by the eligible lending en-
tity to establish a revolving loan fund to 
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