Food Deserts Act of 201 7 This bill establishes a Department of Agriculture program to provide grants to states for revolving funds to support the establishment and operation of grocery stores in underserved communities. An underserved community is a community that has (1) limited access to affordable, healthy foods, including fresh fruits and vegetables, in grocery retail stores or farmer-to-consumer direct markets; and (2) a high rate of hunger, a high rate of food insecurity, or a high poverty rate. States must use the funds to make loans to support grocery stores in underserved communities, including for opening a store (excluding new construction), supporting or purchasing an existing store, or supporting a store located in a community that would be underserved without the store. States may only make loans for grocery stores that meet requirements related to: emphasizing unprocessed, healthful foods; providing staple foods and a variety of raw fruits and vegetables; having a plan to keep the foods in stock; charging prices at or below market averages; meeting specified matching requirements using nonfederal funds; and being qualified to operate a store or having partnerships with organizations that provide technical assistance. States must prioritize loan applications from entities that meet criteria related to: hiring workers from the underserved community, providing classes or educational information about a healthful diet, sourcing food from local urban farms and gardens, not selling alcohol or tobacco products, or demonstrating existing supply chain relationships in the grocery industry.