$240M program and tax credit sale aims to attract & strengthen supermarkets in food desert communities; enables NJEDA to establish innovative programs to combat food insecurity

TRENTON, N.J. (April 12, 2023) – The New Jersey Economic Development Authority (NJEDA) Board today approved proposed rules for the $240 million Food Desert Relief Tax Credit Program, which will help address food access challenges by attracting and retaining new supermarkets in the 50 Food Desert Communities (FDCs) designated by the NJEDA last year. Additionally, the Board approved the sale of up to $50 million of the $240 million in tax credits in 2023, the proceeds of which will fund future grant, loan, and technical assistance programs under the Food Desert Relief Act (FDRA). These programs will help increase availability of nutritious foods and develop new approaches to alleviate food insecurity.

The FDRA was established by the New Jersey Economic Recovery Act (ERA) of 2020 and signed into law by Governor Phil Murphy in January 2021. As authorized by the ERA, the Board approved proposed rules that will allow the NJEDA to launch the Food Desert Relief Tax Credit Program this year.

“Food insecurity is a widespread and longstanding issue that has been exacerbated by the pandemic, and New Jersey is taking innovative steps to ensure no resident goes hungry,” said Governor Murphy. “By expanding grocery options in an intentional manner, more families across our state’s food desert communities will be able to put affordable and healthy food on their tables. Fighting food insecurity fosters greater wellbeing for countless communities and families, advancing our vision for a truly stronger, fairer New Jersey economy.”

“Every New Jersey resident deserves equitable access to fresh and healthy food options, no matter their zip code. The NJEDA is committed to fighting food insecurity and the Food Desert Relief Tax Credit program will help bring new grocery options to food deserts across the state,” said NJEDA Chief Executive Officer Tim Sullivan. “Under Governor Murphy’s leadership and in partnership with Speaker Craig Coughlin and the legislature, New Jersey is working to ensure nutritious foods are accessible and affordable in every community, and this program will further advance the ERA’s goals of fighting food insecurity, creating jobs, and uplifting neighborhoods.”

“I am thrilled to see this program moving forward as we prioritize addressing the problem of food insecurity in New Jersey. This program will help those communities build and sustain healthy, affordable options and grow local business. This is good health and economic policy, in addition to meeting our moral obligations,” said Assembly Speaker Craig J. Coughlin. “This is among my proudest moments in public life. Fighting hunger and food insecurity in our state has been close to my heart for decades. I thank all the partners who have worked together to make this program a reality.”

The Food Desert Relief Tax Credit program establishes two types of tax credits that encourage resiliency of supermarkets for a lasting impact on communities. Both are available to new and rehabilitated supermarkets within the areas designated as FDCs, which span all 21 New Jersey counties and are home to over 1.5 million residents. The Financing Gap Tax Credit will provide up to 40 percent of project’s costs for development of the first new supermarket located in any one FDC, and up to 20 percent for the second new supermarket. The Initial Operating Cost Tax Credit will be available to supermarket operators to help fill a shortfall in initial operating income.

To be eligible, stores must be located within the boundaries of NJEDA-designated FDCs. Applicants must demonstrate that the project would not be feasible without the tax credit award and demonstrate that the supermarket will remain open for business for at least seven years. Applicants must also commit that the supermarket will accept federal benefits such as the Supplemental Nutrition Assistance Program (SNAP) and the Special Supplemental Nutrition Program from Women, Infants, and Children (WIC). Additionally, supermarkets must devote at least 10 percent of retail space to fresh and/or frozen fruits and vegetables and host a community listening session in the FDC at least once a year. A complete overview of the rules and more information on the Food Desert Relief Tax Credit program can be found here.

The FDRA allocates $40 million per year for six years, totaling $240 million, in tax credits and enables NJEDA to sell a portion of the tax credits to support future grant, loan, and technical assistance programs. Today, the Board approved the sale of up to $50 million in tax credits. Proceeds from the sale will be used to support programs that will advance the priorities established by the FDRA and be available to a wide array of organizations, companies, and retailers to strengthen food security in FDCs. These programs will support costs associated with equipment and technology to make nutritious foods more accessible and affordable, as well as other initiatives to ensure food security of FDC residents.

“This is another critical step in Governor Murphy’s comprehensive plan to address food insecurity and bring nutritious foods to every community,” said NJEDA Executive Vice President for Economic Security Tara Colton. “New supermarkets in food deserts will help ensure every resident has access to groceries regardless of their address and income. Furthermore, the sale of tax credits will expand NJEDA’s toolkit to eliminate barriers to nutritious foods by creating innovative programs that will improve the lives of families, kids, and seniors – empowering the transformation of entire communities.”

In line with the Murphy Administration’s Executive Order 63 and the NJEDA’s commitment to transparency and accountability, and in anticipation of today’s vote, the NJEDA publicly posted a summary the Food Desert Relief Tax Credit program proposed rules at the end of 2022 and actively sought public feedback. This process included two public listening sessions and opportunities to submit written feedback.

The NJEDA, in collaboration with the Departments of Community Affairs and Agriculture, previously designated 50 FDCs across the state, approved by the NJEDA Board in February 2022. These FDCs will be served by a variety of programs to increase access to affordable, nutritious food through funding for supermarkets, small- and mid-size retailers, and other entities that support food security initiatives.

The Food Desert Relief Tax Credit Program is part of NJEDA’s broader portfolio of work focused on food security, including the Food Security Planning Grant, Sustain & Serve NJ, and Food Retail Innovation in Delivery Grant (FRIDG). More information on the Food Desert Relief Act and Food Desert Community designations can be found here.

In addition to the FDRA, the ERA creates a suite of programs that includes tax credits to incentivize job creation, new construction, and revitalization of brownfields; financial resources for small businesses; new funding opportunities for early-stage companies in New Jersey; and support for the growing film and digital media industry. Additional information on these programs is available here.

The NJEDA Board’s approval of the proposed regulations are subject to the Governor’s veto period and Office of Administrative Law review prior to becoming effective.

About the NJEDA

The New Jersey Economic Development Authority (NJEDA) serves as the State’s principal agency for driving economic growth. The NJEDA is committed to making New Jersey a national model for inclusive and sustainable economic development by focusing on key strategies to help build strong and dynamic communities, create good jobs for New Jersey residents, and provide pathways to a stronger and fairer economy. Through partnerships with a diverse range of stakeholders, the NJEDA creates and implements initiatives to enhance the economic vitality and quality of life in the State and strengthen New Jersey’s long-term economic competitiveness.

To learn more about NJEDA resources for businesses, call NJEDA Customer Care at 844-965-1125 or visit https://www.njeda.gov and follow @NewJerseyEDA on Facebook, Twitter, Instagram, and LinkedIn.

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Subsidies to Adopt New Grocery Delivery Models to Aid Food Desert Community Residents

TRENTON, N.J (January 6, 2023) – The New Jersey Economic Development Authority (NJEDA) Board announced at its December meeting the approval of a new grant program targeted at strengthening food security in the state’s 50 Food Desert Communities (FDC), which are home to 1.5 million New Jersey residents across a diverse range of communities in all 21 counties. This spring, food retailers will be able to apply for the Food Retail Innovation in Delivery Grant (FRIDG) to assist in the purchase and installation of temperature-controlled lockers to expand food delivery options and improve food access for Food Desert Community residents. FRIDG will provide last mile solutions that help FDC residents tap into the exponential growth in online grocery shopping with delivery to a convenient location in their community.

The $2.5 million allocation appropriated through the Fiscal Year 2022 state budget is aligned with Governor Phil Murphy’s commitment to combating food insecurity, including Sustain & Serve NJ, the Food Security Planning Grant and the Food Desert Relief Act, which will provide up to $40 million per year to support a variety of programs that increase access to affordable, nutritious food through funding for supermarkets, small- and mid-size retailers, and other entities that support food security initiatives. NJEDA is also currently seeking public feedback on the Food Desert Relief Tax Credit Program, which aims to support the development and initial operations of new supermarkets and grocery stores in FDCs.

“The FRIDG program will build upon Governor Murphy’s vision and the work being done to uplift those in the state’s targeted Food Desert Communities,” said NJEDA Chief Executive Officer Tim Sullivan. “People should be able to benefit from the advancements in grocery delivery and access nutritious food regardless of their zip code. With this new program, we will make New Jersey a leader in pioneering a new approach to food access in partnership with food retailers.”

“The creation of crucial resources and programs, such as the FRIDG program, plays an important role in our work to stem food insecurity in households across New Jersey,” said Assembly Speaker Craig J. Coughlin (D-Middlesex). “This program will help bridge the gap in access to balanced, nutritional meals for working families living in food desert communities in our state, building on our efforts to put food on the table of all New Jerseyans. Meeting the most basic needs of our residents must be our priority and the FRIDG program helps us accomplish this by building on our existing hunger-fighting initiatives.”

Food retailers with at least one physical location in New Jersey can apply for up to $250,000 in funding to purchase and install self-contained, temperature-controlled lockers in one of New Jersey’s 50 designated FDCs. These companies must be authorized to accept online orders paid with Supplemental Nutrition Assistance Program (SNAP) benefits. As of September 2022, there were 789,276 New Jersey residents receiving SNAP benefits, including nearly 350,000 children. In 2020, the NJ Department of Human Services (NJDHS) launched a pilot program to allow SNAP recipients to use their benefits to purchase groceries online. This aligns with the broader growth in online grocery ordering, which now accounts for almost 10 percent of all grocery sales nationwide and is projected to surpass 20 percent by 2026. New Jersey SNAP recipients can now purchase groceries online from 16 retailers, but many FDC residents remain unable to receive groceries as they lack a reliable delivery location due to unpredictable work schedules, family obligations or housing insecurity. The FRIDG lockers are intended to provide FDC residents with a safe, convenient location where their grocery orders – including fresh produce and dairy – will stay fresh until they are retrieved at a convenient time. 

“Food assistance through SNAP puts food on the table for many New Jersey families. But for residents without ready access to fresh, nutritious food, this assistance is incomplete,” NJDHS Commissioner Sarah Adelman said. “The FRIDG program bridges the gap by allowing retailers who participate in the states’ online ordering flexibility to better serve customers where they live and work. This program, with the strong leadership and partnership of NJEDA, truly demonstrates the Murphy Administration’s whole-of-government approach to addressing food insecurity.”

Retailers must submit an application detailing their plan to purchase these lockers before actually buying one. The FRIDG grants will cover at least 30 percent of the initial costs, including the installation, which is subject to the state’s prevailing wages and affirmative action laws for installation costs above $2,000. Applicants may increase their grant award through bonuses to cover up to 50 percent of the project costs for commitments such as waiving delivery fees (including for SNAP recipients) and partnering with community-based organizations to host the lockers. The lockers must be installed in public places with easy general access to the public to allow residents to easily access to groceries. such as community centers or libraries, not lobbies of apartment complexes with keycards or locks or other sites with restricted access. The Authority will disburse funds to the purchasing companies following the installation, which will be the lower amount between the determined percentage or $250,000.

“There is no single solution to alleviating food deserts, and FRIDG is a vital element of Governor Murphy’s growing portfolio of food security initiatives,” said NJEDA Executive Vice President for Economic Security Tara Colton. “This program is pioneering a new approach to food access in partnership with food retailers. By meeting people where they are – literally – we aim to eliminate some of the structural and logistical barriers to fresh and nutritious food that should be the standard for all New Jersey residents, regardless of where they live.”

“True food security exists when all people, at all times, have physical, economic, and social access to safe, sufficient, and nutritious food,” said Mark Dinglasan, Director of the Office of the Food Security Advocate (OFSA). “The FRIDG program is an innovative approach to food security that encourages public/private partnerships, decreases stigma, leverages technology, and fulfills a good portion of the definition of food security. OFSA is proud to support the NJEDA in this effort and looks forward to continued innovation and collaboration that we can bring to bear when we all work together and push each other to think outside the box.”

Retailers can apply for multiple grants, providing they offer one locker unit per FDC and do not try to install one in a FDC that has already received approval.  The application window will be open for 18 months from the start date or until the funds are exhausted, whichever comes first. This is not a competitive application process, and all candidates will be evaluated separately as applications are received. Upon approval, grantees will have 12 months to install the lockers, with up to two six-month extensions available, pending Authority approval.

About the NJEDA

The New Jersey Economic Development Authority (NJEDA) serves as the State’s principal agency for driving economic growth. The NJEDA is committed to making New Jersey a national model for inclusive and sustainable economic development by focusing on key strategies to help build strong and dynamic communities, create good jobs for New Jersey residents, and provide pathways to a stronger and fairer economy. Through partnerships with a diverse range of stakeholders, the NJEDA creates and implements initiatives to enhance the economic vitality and quality of life in the State and strengthen New Jersey’s long-term economic competitiveness.

To learn more about NJEDA resources for businesses, call NJEDA Customer Care at 844-965-1125 or visit https://www.njeda.gov and follow @NewJerseyEDA on Facebook, Twitter, Instagram, and LinkedIn.

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Now funded at $57.5M, Sustain & Serve NJ helps program grantees buy meals from local restaurants and feed families over the holidays

TRENTON, N.J. (December 20, 2022) – The New Jersey Economic Development Authority (NJEDA) today announced plans to allocate an additional $5 million in state funding to Phase 3 of its Sustain & Serve NJ program. Sustain & Serve NJ provides nonprofit organizations with grants to support the purchase of meals from New Jersey restaurants that have been negatively impacted by COVID-19 and the distribution of those meals at no cost to recipients. The announcement comes at a time of year when nonprofits are facing peak demand for food assistance.  The funding announced today is expected to support the purchase of an additional 450,000 meals.

Sustain & Serve NJ launched during the pandemic as a $2 million pilot program to boost restaurants impacted by COVID-19 while combatting rising food insecurity and has grown into an over $57 million program that continues to bring much-needed food to people across New Jersey. Since February 2021, Sustain & Serve NJ has already supported the purchase of more than four million meals from over 400 restaurants in all 21 counties with grants totaling $57.5 million through three rounds of funding.

“Sustain & Serve NJ is a unique tool with a proven track record of enabling nonprofits to buy meals from local restaurants to combat food insecurity,” Governor Phil Murphy said. “Food banks and other nonprofits statewide are seeing a rising demand this holiday season and this added $5 million for Sustain & Serve NJ will significantly aid their efforts to connect New Jerseyans with nutritious meals.”

Earlier this year, 31 New Jersey nonprofits were approved to receive a total of $17.5 million through Phase 3 of Sustain & Serve NJ. Each of these awardees will now receive additional funding to support their efforts.

“Sustain & Serve NJ grantees are working extra hard this holiday season to feed their neighbors and support their communities,” said NJEDA Chief Executive Officer Tim Sullivan. “Governor Murphy has championed Sustain & Serve NJ since the beginning, and we are grateful to him and the Legislature for continuing to provide the resources we need to combat hunger every day of the year while supporting local restaurants throughout the Garden State.”

“This additional $5 million committed to Sustain & Serve NJ partners will go extra lengths in making sure more families see hot and freshly prepared foods on their tables this holiday season, into the New Year, and beyond,” said Assembly Speaker Craig J. Coughlin. “And that’s incredibly critical as our food banks report sharp increases in food insecurity among our communities.”

Sullivan noted that Sustain & Serve NJ is a key part of the NJEDA’s efforts to strengthen the economic security of all New Jerseyans. The Authority is putting forth a multi-pronged strategy to eliminate food deserts within the state and to bolster the child care sector, an industry whose critical importance was highlighted during the COVID-19 pandemic. The NJEDA is also working with partners statewide to create a Maternal and Infant Health Innovation Center in Trenton as part of First Lady Tammy Murphy’s Nurture NJ initiative to make New Jersey the safest and most equitable place to give birth in the country.

“Under Governor Murphy’s leadership, we are taking a holistic approach to ensuring New Jerseyans’ basic needs are addressed and have placed a large focus on food security,” said NJEDA Executive Vice President of Economic Security Tara Colton. “Sustain & Serve NJ has the ability to transform lives – both by bolstering the restaurant industry and bringing nourishment to New Jerseyans in a respectful and dignified manner.”

Grantees and restaurant owners alike welcomed the news of additional funding and focused on the impact it will have statewide:

“As the cost of living has risen over the past year, many pantries at the Jersey shore are reporting that they are serving even more people than at the height of the pandemic,” Fulfill President and CEO Triada Stampas said. “Sustain & Serve NJ has been a critical tool to help address the food security needs of our neighbors. Over the past two and a half years, we were able to work with 35 restaurant and catering businesses to provide over 701,000 meals to our neighbors, while also helping those businesses survive during a really challenging time. Fulfill is grateful to Governor Murphy and our legislature, as well as Tim Sullivan and Tara Colton at the NJEDA, for their leadership in this expanded support.”

“Sustain & Serve NJ is just one of the programs Governor Murphy has initiated to help New Jersey make it during this period of time,” said Randy Glover, Chairman/Executive Director of All Access Community Development Corporation. “It is abundantly clear that the governor and his administration understand so well the pain and challenges of those at all income levels being faced in New Jersey. His mandates that have been articulated from the beginning of Covid-19 through this current economic crisis, putting food on the tables of all New Jerseyans illustrates his commitment to people, his compassion to all of New Jersey. New Jersey Pride, New Jersey Strong, that’s our Governor, that’s my Governor. Thank you, Governor Murphy, for your vision to see us throughout this time in history.”

“This program has really helped me keep our doors open and serve our community,” said Mohamed Elrawy, owner of Newark-based Pita Square. “Partnering with Coalition Equity has helped me serve my community by giving not only food but fresh and healthy food — something that everybody should be able to have, no questions asked. If you would have told me pre pandemic that I would be able to help people struggling everyday with hunger while keeping my doors open, I wouldn’t have believed you. It’s put a whole new meaning to what my restaurant can do and is doing for Newark and the surrounding community. I can’t tell you how thankful I am to participate in this program and partner with programs like Coalition Equity, Newark Working Kitchen and University Hospital to serve the community.” 

About the New Jersey Economic Development Authority

The New Jersey Economic Development Authority (NJEDA) serves as the State’s principal agency for driving economic growth. The NJEDA is committed to making New Jersey a national model for inclusive and sustainable economic development by focusing on key strategies to help build strong and dynamic communities, create good jobs for New Jersey residents, and provide pathways to a stronger and fairer economy. Through partnerships with a diverse range of stakeholders, the NJEDA creates and implements initiatives to enhance the economic vitality and quality of life in the State and strengthen New Jersey’s long-term economic competitiveness.

To learn more about NJEDA resources for businesses call NJEDA Customer Care at (844) 965-1125 or visit https://www.njeda.gov and follow @NewJerseyEDA on Facebook, Twitter, Instagram and LinkedIn.

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