Social Compact Investment Fund Fact Sheet

Social Compact, Inc., a national non-profit organization, has created the Social Compact Investment Fund (SCIF) to support the development of supermarket-anchored retail projects in underserved marketplaces. These investments will bring new grocery stores into markets that the traditional, national supermarket and grocery store chains have long overlooked. The stores supported by SCIF investments will offer high-quality general merchandise, seasonal goods and everyday consumables at very competitive prices, in addition to USDA-inspected beef, pork and poultry, farm-fresh fruits and vegetables.

Loan amount: Loans will be made for up to $150,000 for a maximum of 12 months.

Fees and interest: Loan will bear interest at a rate of 0.5% per month. There is an application/underwriting fee of $5,000 and a closing fee of 2% of the loan proceeds.

Eligible locations: Projects must be located in urban census tracts that qualify for New Markets Tax Credits.

Eligible borrowers: Established for-profit or non-profit commercial real estate development firms and/or the joint ventures, partnerships, and/or limited liability companies created by these firms, where the development firm has at least 51% management control.

Eligible projects: Eligible projects are single or mixed-use development sites in which a full service grocery retailer is a major or anchor tenant and occupies at least 30% of the proposed net leasable square footage.

Uses of funds: Loan proceeds are intended to fund predevelopment costs typically incurred after site control but before construction loan closing. Eligible uses may include Phase II environmental analyses and/or remediation, architectural and engineering fees, surveys, market studies, appraisals, financial consultants, legal fees, down payments and option agreements, and applications and building permits and fees. Loan proceeds cannot be used to fund the following costs: existing debt on the property; federal and local taxes; all costs to satisfy liens and related penalties; government impositions; and acquisition of borrower’s fixed assets except real property.

Project readiness: Prospective projects must demonstrate that they have attained the following milestones before they will be considered for funding:

  1. Ability to take control of developable site

  1. Ability to bring grocery store operator to site

  1. Financial feasibility is demonstrated



Click here to download the application.

For further information, please contact Alyssa Lee at Social Compact at alee@socialcompact.org





© 2009 Social Compact Inc.