1. Short title This Act may be cited as the Food Deserts Act of 2017 . 2. Grant program to establish grocery stores in underserved communities (a) Establishment of grant program The Secretary shall establish a program to provide capitalization grants to States for the purpose of establishing revolving funds to support the establishment and operation of grocery stores in underserved communities. (b) Administration A State receiving funds under this Act shall administer the revolving fund of the State through an instrumentality of the State with such powers and limitations as may be required to operate such fund in accordance with the requirements of this Act. (c) Projects and activities eligible for assistance Amounts in a revolving fund shall be used for the purpose of making loans— (1) to open a grocery store in an underserved community, except that such loan may not be used for the purpose of new construction; (2) to support the operations of an existing grocery store in an underserved community; (3) to facilitate the fair market value purchase of an existing grocery store in an underserved community; or (4) to support the operations of a program participant that is located in a community that would be an underserved community if the program participant was not located in such community. (d) Grocery stores eligible for assistance (1) Required criteria A State receiving a capitalization grant under this Act may only make a loan from the revolving fund of the State to an entity that the State determines— (A) is a grocery store or will be a grocery store after opening; (B) emphasizes or will emphasize unprocessed, healthful foods; (C) provides or will provide a variety of raw fruits and vegetables; (D) provides or will provide staple foods; (E) has a plan to keep such foods in stock to the extent possible; (F) charges or will charge prices at or below market averages; (G) either— (i) is sufficiently qualified to operate a grocery store