Since then, TRF has provided financing totaling $100 million to 93 food retailers across Pennsylvania that offer healthy food in food deserts.

To measure impact, Smith says the goal will be identifying health outcomes based on body mass index rather than simply focusing on what foods people buy.  In the meantime, she points out, these supermarkets serve as economic development tools. "They are economic anchors," she says, "and a gathering place to build social capital."

Individuals can participate in the TRF Loan Fund through a minimum $1,000 loan for a period of three to 30 years. Return rates vary from 2.25% invested for three years to 3.75% for ten years.

Modeled on TRF's success, other CDFIs engaged in similar public-private efforts include NCB Capital Impact in California, the Low Income Investment Fund in New York, IFF in Illinois and the ASI Federal Credit Union in Louisiana. And more is in the works, says food systems consultant Nessa Richman, who says that The Food Trust (TRF's nonprofit collaborator) has garnered support from The Robert Wood Johnson Foundation to lay the groundwork for similar projects in New Jersey, Colorado, Massachusetts, Maryland, Mississippi, Georgia, Tennessee, Texas, Arizona and Minnesota.

Financing The Source
As crucial as food access is, though, it's predicated on a sustainable food system and a healthy supply of farmers who have access to both land and the financing they need to produce that food.

Whereas TRF has focused on retail (and is now looking into production, aggregation and distribution and value-added processing), Coastal Enterprises Inc. (CEI) has focused on production. Since inception in l977, CEI has made $1 million in production loans (often in the form of micro-loans totaling $20,000 to $40,000) to farmers and $8 million in loans to food-related businesses.

"Farms are inextricably tied to their communities and the economics of their community, the landscape of their community, and the culture of their community," says Gray Harris, CEI's director of sustainable agriculture. "It's really a good fit because that's what we're about, too."

It's also a good fit because CDFIs have always provided gap financing, which is the high-risk capital that helps a deal actually get done. And according to Harris, CEI has found several ways in addition to healthy loan-loss reserves to reduce its risk.

For example, CEI has become a Farm Service Agency (FSA) lender--one of four CDFIs (most of whom are non-regulated lenders) to be granted that status. Although the paperwork is onerous, it means the government guarantees a portion of CEI's loans.  "Any conventional bank can apply," Harris says. "But we're finding that they don't want to lend."

CEI also prides itself on its due diligence, which includes aspects of technical assistance. Due to a strong network, Harris can quickly size up a farmer's reputation, who his market is, and how he fits into the big picture. But she puts a lot of effort into understanding a farmer's cash flow and what it would take to make the loan request a stronger proposal.