Michigan Good Food Fund January 21, 2014 Michigan Good Food Fund January 21, 2014

MGFF Initiative Structure Lead Investor/ Lead Grantor W.K. Kellogg Foundation Lead Investor/ Lead Grantor W.K. Kellogg Foundation Private Co-Investors/ Co-Grantors Private Co-Investors/ Co-Grantors The Michigan Good Food Fund Public Co-Investors/ Co-Grantors Public Co-Investors/ Co-Grantors Target Borrowers Michigan Good Food Fund Task Force Pipeline Development/ Community Engagement Guidelines & Criteria Finance Public Sector Engagement Development Steering Committee Execution Fair Food Network Good Food Access Organization “Retail & Food Entrepreneurship” Fair Food Network Good Food Access Organization “Retail & Food Entrepreneurship” Michigan State University Good Food Access Organization “Production & Distribution” Michigan State University Good Food Access Organization “Production & Distribution” Capital Impact Partners Program Administrator Capital Impact Partners Program Administrator Investment Advisory Committee 2

MGFF Capital Structure Senior Debt $14 million 70% Subordinate Debt $3.5 million 17.5% Syndicated Loan Participation (Non NMTC Retail) $20 million Leverage Debt $3.5 million 70% Tax Credit Equity $1.5 million 30% Small Dollar Lending including Microlending $3 million Grant $2 million 100% Grants & Technical Assistance $2 million New Markets Tax Credits $5 million NMTC Projects 7-Year Debt Interest Only Equity Grant $2.2 million 70% Low Cost Debt $0.8 million 30% The above NMTC structure implies having access to $5 to $6 million of tax credit allocation. 3 Note: This capital structure is proposed and remains subject to change. Companion Grant $2.5 million 12.5% Development Execution Development Grants $1.7 million $1.7 million: Development Grants $3.0 million: PRI (over 3 years) $2.0 million: MDI Loan Participation $6.7 million: Total