Iowa law creates reinvestment fund for small grocers

(Des Moines) A ​​bill introduced this week in the Iowa Senate would provide funding to small grocery store owners struggling to keep their stores open amid economic and workforce challenges and competition from big box retailers. is intended to provide.

Senate Study Bill (SSB) 3074, introduced in the Senate Commerce Committee, would create the Grocery Store Reinvestment Fund and provide grants to help locally owned grocery stores that sell fresh produce invest in their businesses. and establish a financing program.

Center for Rural Affairs policy director Cynthia Farmer praised the committee for introducing the bill, which will be discussed at a subcommittee meeting on Wednesday, Jan. 24, at 8:30 a.m. .

“Grocery stores are an essential part of our communities, providing not only essential resources but also economic and social benefits,” Farmer said. “Since the COVID-19 pandemic, inflation, supply chain issues, and increased online shopping have put a strain on local grocery stores, especially in rural areas. provides financial support to grocery stores for cost reduction efforts and operational efficiencies to ensure sustainable sustainability.”

If the bill passes, the Iowa Economic Development Authority would oversee the grant and loan programs. The funds will be available to grocery stores that sell canned and frozen foods. fresh fruits and vegetables. and fresh meat, fish, and poultry. Companies must employ no more than 25 employees and plan to create new jobs or increase the compensation of existing employees.

Located in an underserved area, serving primarily low- or moderate-income communities, able to provide funding equal to at least half of the total project cost, and eligible for Supplemental Nutrition Assistance Program (SNAP) and Companies that can accommodate women will be given priority consideration. Infant and Child (WIC) Welfare.

“The Grocery Store Reinvestment Fund and Program allows recipients to upgrade their facilities, adopt new business practices, effectively promote their business, find alternative product sourcing, and develop their employees through enhanced training. “It helps,” Farmer said. “We urge the subcommittee to recommend advancement of SSB 3074.”