Statutes, codes, and regulations
Colorado Administrative Code
Department 1200 - Department of AgricultureDivision 1204 - Markets Division
Rule 8 CCR 1204-9 - RULES PERTAINING TO THE SMALL FOOD BUSINESS RECOVERY AND RESILIENCY GRANT AS PART OF THE COMMUNITY FOOD ACCESS PROGRAM
Section 8 CCR 1204-9-3 - Grant Eligibility Requirements

8 Colo. Code Regs. § 1204-9-3

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Current through Register Vol. 47, No. 19, October 10, 2024
Section 8 CCR 1204-9-3 - Grant Eligibility Requirements
3.1. LILA Requirement
3.1.1. An applicant for a Grant Award must demonstrate that the applicant's proposed project will have a Direct Impact on a LILA community. An applicant may demonstrate that its project will have such an effect in one of the following ways:
3.1.1.1. Define the geographical area that the project will affect to show that the project will be placed in an area that:
3.1.1.1.1. Has at least 500 people, or 33 percent of the population, living more than 1 mile (an urban area) from the nearest supermarket, supercenter, or large grocery store or
3.1.1.1.2. Has at least 500 people, or 33 percent of the population, living more than 10 miles (a rural rea) from the nearest supermarket, supercenter, or larger grocery store; and
3.1.1.1.3. Is within a United States census tract whose poverty rate is 20 percent or greater; or
3.1.1.1.4. Is within a United States census tract where the median family income is less than or equal to 80 percent of Colorado's state-wide median family income; or
3.1.1.1.5. Is within a United States census tract is in a metropolitan area where the median family income is less than or equal to 80 percent of that metropolitan area's median family income.
3.1.1.2. Identify that the project is located in a census tract adjacent to a census tract meeting the above criteria with median family income less than or equal to 120 percent of area median family income;
3.1.1.3. Identify that the project is located in a Limited Supermarket Access Area;
3.1.1.4. Identify that the project is operated by a Tribal government or on Tribal Lands;
3.1.1.5. Identify the Qualified Census Tract in which the project is located; or
3.1.1.6. Provide a narrative explanation to establish any other factors that the applicant believes should qualify its project as located in or serving a low-income, low-access community, including by use of locally aggregated data.
3.2. Eligible Business Requirements
3.2.1. A person or business that desires to apply for a Grant Award must demonstrate eligibility for a Grant Award by meeting the following minimum requirements:
3.2.1.1. A Small Family Farm must:
3.2.1.1.1. Be Colorado-owned and Colorado-operated; and
3.2.1.1.2. Have an annual gross revenue below $350,000.
3.2.1.2. A Small Food Retailer must:
3.2.1.2.1. Be an independent or nonprofit-managed retailer and must:
3.2.1.2.1.1. Be Colorado-owned and Colorado-operated;
3.2.1.2.1.2. Have less than 10,000 square feet of retail space;
3.2.1.2.1.3. Carry at least three categories of staple foods; and
3.2.1.2.1.4. Be located in or provide food to low-income, low-access communities; or
3.2.1.2.2. Be a farmer's market or farm-direct operation that is already or demonstrates an intent to become SNAP- and WIC-authorized where allowed.
3.3. Eligible Use Requirements
3.3.1. An Applicant must demonstrate in its application for a Grant Award that its proposed project will use any awarded funds on Eligible Uses; and
3.3.2. An Awardee may only use funds from a Grant Award on Eligible Uses.
3.3.3. For an expense to qualify as an Eligible Use, it must reasonably demonstrate a Direct Impact toward increasing healthy food access or lowering healthy food prices in a LILA community, and
3.3.4. Fit within one of four categories:
3.3.4.1. Operating Expenses (set forth below in part 3.4);
3.3.4.2. Equipment (set forth below in part 3.5);
3.3.4.3. Accounting and Book Management (set forth below in part 3.6); or
3.3.4.4. Point of Sales Equipment (set forth below in part 3.7);
3.3.5. An applicant for a Grant Award may identify multiple proposed Eligible Uses in its application, up to the maximum of $50,000 per calendar year.
3.3.6. The Department reserves the right to qualify, in consultation with the Advisory Committee, other expenses as Eligible Uses of a Grant Award if such uses demonstrate similarity in nature and effect to those identified in Part 3.3.
3.3.7. Applicants must demonstrate how any proposed equipment purchases will result in increased access to healthy food or lower prices of healthy food in a LILA community.
3.3.8. An applicant may, at the time of application, provide additional, proposed uses of a requested Grant Award. To do so, the applicant must adequately justify in its application how the additional purchase or expense is similar and how the additional use will increase access to healthy food in a LILA community. It is in the Commissioner's sole discretion to approve a proposed Eligible Use.
3.3.9. Grantees are responsible for maintaining compliance with all food safety standards and operating within the scope of their permit type. In some cases, adding additional equipment to an existing facility may require a regulatory review.
3.4. Operating Expenses
3.4.1. Eligible Distribution Expenses:
3.4.1.1. Inventory tracking systems;
3.4.1.2. Mileage to deliver to small food retailers;
3.4.1.3. Shipping costs, pallet rates, and other delivery fees from distributors;
3.4.1.4. Packaging materials and incidental costs associated with distribution;
3.4.1.5. Shipping costs for culturally relevant healthy food -- does not include the cost of the food;
3.4.1.6. Contract delivery services, including last-mile delivery; and
3.4.1.7. Direct to consumer online order systems and delivery costs.
3.4.2. Eligible Personnel Expenses:
3.4.2.1. Services or staff time associated with the installation of eligible equipment;
3.4.2.2. Staff time associated with becoming SNAP or WIC authorized, maintaining authorization, or managing an ongoing healthy food incentive program;
3.4.2.3. Services or staff time associated with small construction projects or build outs related to expanding access to healthy food;
3.4.2.4. Services or staff time related to creating educational material highlighting new healthy food offerings;
3.4.2.5. Services or staff time related to hosting events promoting new healthy food offerings; and
3.4.2.6. New staff to maintain supply, stock, ensure proper storage, and ensure rotation of new perishable healthy food offerings.
3.4.3. Eligible Packaging and Storing Supply Expenses:
3.4.3.1. Packaging materials for healthy foods;
3.4.3.2. Contract services for packing and storing; and
3.4.3.3. Construction of buildings for storage.
3.4.4. Eligible Education Expenses:
3.4.4.1. Educational material related to healthy food that directly targets LILA communities in Colorado;
3.4.4.2. Translation and interpretation services;
3.4.4.3. Educational consultants or community organizations to specifically target LILA communities in Colorado;
3.4.4.4. Events promoting healthy food education;
3.4.4.5. Signage related to healthy food promotion, SNAP, WIC, Double Up Food Bucks, or any healthy food incentive program; and
3.4.4.6. Signage/educational materials for local products and local producers;
3.4.4.7. Costs associated with media promotion of new healthy food offerings.
3.4.5. Eligible Retail Operating Expenses:
3.4.5.1. Remodeling to accommodate display and storage of healthy foods;
3.4.5.2. Increased utility expenses related to recent (within one year of grant application opening) or new purchase of equipment to expand healthy food access/options; and
3.4.5.3. Equipment for mobile stands to sell healthy foods at temporary locations, including tents, coolers, and tables.
3.4.6. Eligible Operating Expenses Associated with Becoming Authorized to offer SNAP, WIC, or another Incentive Program:
3.4.6.1. Technical Assistance (contractors) to support becoming or remaining authorized;
3.4.6.2. Tuition or registration for education and training;
3.4.6.3. Subscription for SNAP or WIC payment processing application; and
3.4.6.4. Other operating expenses the Commissioner determines qualify as directly improving food access to LILA communities.
3.4.7. Non-Eligible Operating Expenses:
3.4.7.1. Direct purchase of food;
3.4.7.2. Existing and recurring retail and farm operation expenses that do not directly provide increased access to healthy food for LILA communities;
3.4.7.3. Down payments, mortgages, or lease payments;
3.4.7.4. Loan repayment;
3.4.7.5. Utility expenses unrelated to expansion of healthy food access;
3.4.7.6. Taxes and insurance;
3.4.7.7. Travel expenses (lodging, meals, and transportation);
3.4.7.8. Salaries for new employees not related to expanding capacity to increase access to or lower prices for healthy foods for LILA communities;
3.4.7.9. Salaries or bonuses for existing staff not related to expanding capacity to increase access to or lower prices for healthy foods for LILA communities;
3.4.7.10. Expenses related to alcohol or cannabis products; and
3.4.7.11. Funds cannot be used to satisfy settlements or judgments and payments of debt services, make deposits into pension funds, or fund programs, services, or capital expenditures that include terms or conditions that undermine the effort to stop the spread of Covid-19.
3.5. Equipment Purchases:
3.5.1. Eligible Equipment Expenses:
3.5.1.1. Cold Storage: Refrigeration and freezer units (consumer-facing or storage);
3.5.1.2. Display shelving and display cases;
3.5.1.3. Produce scales;
3.5.1.4. Food preservation equipment in order to extend the availability of healthy food for customers beyond the local harvest or slaughter calendar;
3.5.1.5. Deli slicers and meat grinders for fresh meat;
3.5.1.6. Dry storage containers;
3.5.1.7. Major repairs or updates to existing equipment listed above;
3.5.1.8. Delivery trucks that will be primarily used for the transportation of healthy food to LILA communities (refrigerated or standard vehicles);
3.5.1.9. Major repairs or updates to delivery vehicles that provide transportation of healthy foods; and
3.5.1.10. New or used farming and ranching equipment that will demonstrably and significantly increase retail healthy food access in LILA communities, including but not limited to equipment that is essential for planting, raising food-producing animals, harvesting, packing, storing, extending the growing season, or shipping healthy food.
3.5.2. Non-Eligible Equipment Expenses
3.5.2.1. Storage or retail display equipment for alcoholic beverages, soft drinks, sports and energy drinks or cannabis products;
3.5.2.2. Vending machines that do not offer healthy food;
3.5.2.3. Storage or equipment for prepared foods; and
3.5.2.4. Equipment that will not result in expanded access to or lowered prices for healthy food for LILA communities.
3.6. Accounting and Book Management Support
3.6.1. Eligible Accounting and Book Management Support
3.6.1.1. Online accounting systems; and
3.6.1.2. Technical support through contracted services
3.6.2. Non-Eligible Accounting and Book Management Support
3.6.2.1. CPA financial audits not related to SNAP, WIC, or other healthy food incentive programs.
3.7. Purchasing or Updating Point of Sales (POS) Equipment for Food Incentive Programs
3.7.1. Eligible Purchasing or Updating Point of Sales Equipment
3.7.1.1. New POS systems, including software, hardware, monitors, printers, and incidental supplies that are directly related to implementing or improving SNAP, WIC, or other food incentive programs;
3.7.1.2. Staff POS training expenses; and
3.7.1.3. Upgrades to existing POS systems.
3.7.2. Non-Eligible Purchasing or Updating Point of Sales Equipment for Food Incentive Programs:
3.7.2.1. POS systems that are not equipped to accept SNAP or WIC.

8 CCR 1204-9-3

46 CR 17, September 10, 2023, effective 9/1/2023, exp. 12/7/2023 (Emergency)
46 CR 23, December 10, 2023, effective 12/30/2023