Healthy Food Retail Lending

Financing Guidelines

TRF’s financing will be subject to all terms and conditions typically required by TRF for supermarket projects, as well as ones unique to a particular transaction. The terms presented below are typical of TRF’s financing but vary according to specific project and borrower circumstances, geography and the availability of TRF’s capital for special lending programs.

Eligible Customers:	Supermarket operators and developers of supermarket spaces where the supermarket square footage exceeds 50% of the gross square feet of the shopping plaza.
Healthy Food Retail Location:	Pennsylvania, New Jersey, Maryland, Delaware and Washington, DC Predominantly in low-income communities or serving a low-income population and a community with inadequate supermarket access or limited healthy food retail choices
Uses:	Predevelopment Acquisition Construction/Renovation Leasehold Improvements Equipment Energy-Efficient Improvements Permanent
Amount:	Up to $4,500,000 or more Determined by the cost of the project, the availability of collateral, the borrower’s financial history and the borrower’s ability to repay
Rate:	Varies by product and term
Term:	Predevelopment, acquisition or construction loans: Up to 12 months Permanent loans: 5 to 7 years; amortizations up to 25 years Leasehold improvement loans: Loan term not to exceed term of lease
Advances:	Construction advances for work-in-place as verified by a TRF inspector, subject to 10% retainage
Collateral:	Mortgage or leasehold mortgage Security interest in personal property
Repayment:	Interest only during predevelopment and construction, with committed permanent take-out Permanent loans may require balloon payment at maturity
Fees:	1% for construction; 1% for permanent Borrower pays all of TRF's costs in closing the transaction, including, but not limited to, outside legal costs, recording fees, search fees, title insurance, appraisal fees, plan review, inspection costs, and environmental assessments

Loan Criteria

TRF will underwrite and structure a loan by considering the strength of the supermarket, borrower and project, as evidenced by the following:

Strong financial condition of supermarket, borrower and, if applicable, guarantor
Management experience and depth
Wholesaler reference and/or trade history
Viable supermarket location as supported by market study or other market potential analysis
Loan to value ratio < 90%, based on satisfactory appraisal
Loan to project cost < 90%, for leasehold improvements
Debt service coverage ratio > 1.25x for five to seven year operating projections

Grants

In some cases, loans may be paired with a predevelopment or capital grant. There is not a separate grant application as grants are considered for loan applicants only.

TRF Energy

TRF Energy helps organizations reduce their energy costs through financing for energy efficiency improvements and energy conversation practices. Learn more about TRF Energy lending guidelines or review TRF Energy’s Eligible Building Measures.

For more information

To learn more about TRF’s healthy food retail lending, call Christina Szczepanski at 215-574-5800 or email Supermarkets@TRFund.com.