Reinvestment Fund is partnering with peer CDFIs to finance the expansion of Honor Capital’s network of Save-A-Lot grocery stores. With the financing, it will own and operate 10 grocery stores in six states.
Honor Capital was founded in 2014 by a group of post-9/11 veterans with a dual mission to promote veteran entrepreneurship and improve access to healthy food in underserved communities. Honor Capital is also committed to growing it model by bringing in new veteran entrepreneurs and providing a pathway to store ownership.
Located in both rural and urban areas, its stores serve low-income communities in or adjacent to USDA defined low-income, low-access census tracts. The stores are expected to serve nearly 40,000 low-income households and will employ over 270 people in communities with unemployment rates as high as 18%.
Honor Capital opened its first store in 2015 in South Carolina. By late 2016, it had opened three other stores, including one in Winfield, KS, that Reinvestment Fund helped finance.
This transaction provides permanent financing to its three current stores in Oklahoma and Kansas; helps Honor Capital acquire three stores in Augusta, GA, Danville, VA, and Aiken, SC; and allows it open three new stores in Mooresville, NC, and Altus and Oklahoma City, OK. Reinvestment Fund partnered with peer CDFIs Enterprise Community Loan Fund and IFF to provide a leverage loan that is part of a $8.8 million New Markets Tax Credit (NMTC) transaction. JPMorgan Chase and Enterprise Community Loan Fund provided the NMTC allocations, and Chase is also the investor.