Pushing to rev up local economy, Suffolk legislator proposes nonprofit finance vehicle

Suffolk County lawmakers are considering a new independent finance corporation that would raise money to provide affordable credit and financing services to small businesses and entrepreneurs, particularly in underserved communities.

The Suffolk County Community Development Finance Corporation's mission would be to “promote equitable economic opportunity across all regions of Suffolk County,” according to the proposed bill, which specifies communities like Brentwood, Bellport, Shirley and Riverhead as underserved areas.

Legis. Jason Richberg (D-West Babylon), the minority leader and the bill’s sponsor, said the corporation, which would be formed as a nonprofit, could help make Suffolk more affordable. It comes as affordability remains a pressing concern for residents.

“It’s another tool in the tool chest for the county to use,” he said.

The corporation, the third such entity in Suffolk if approved, would seek certification as a community development financial institution, a federal designation through the U.S. Treasury Department, and would “leverage federal, state, private, and philanthropic capital," according to the bill.

CDFI’s have existed for decades as a way to provide capital in areas often underserved by traditional financial institutions like banks, according to the federal government’s CDFI Fund, which was established in 1994. By becoming a certified CDFI, the corporation would have access to federal money in that fund.

The Suffolk legislation was introduced last month and the legislature held a public hearing May 12. The hearing will resume at the June 2 general meeting in Hauppauge.

“I think the idea is we need the discussion,” Richberg said. “How do we attract businesses to the county? Obviously, folks have different ideas and different perspectives. But this is a start.”

The corporation could benefit veterans, minority-and women-owned business enterprises, agricultural enterprises and emerging industries, according to the bill.

Richberg said the bill will likely undergo some changes as he receives additional feedback.

It’s unclear whether the bill would have support of the Republican majority.

Presiding Officer Anthony Piccirillo (R-Holtsville) said he “would be cautious about setting up another bureaucracy.”

County Executive Edward P. Romaine, a Republican, would need to sign the bill into law if the legislature adopts it. 

In 2024, Newsday reported on a survey conducted by Long Island University’s Steven S. Hornstein Center for Policy, Polling, and Analysis on 176 small business owners in a variety of industries. The survey found minority owners of small businesses said they could use more assistance in accessing financing and applying for government programs.

There are more than 1,400 certified CDFIs across the country, according to Opportunity Finance Network, a Washington, D.C.-based network of about 500 nationwide CDFIs. Through 2024, the CDFIs in the Opportunity Finance Network have provided more than $136 billion in total financing to “rural, urban and Native communities.”

If created, the Suffolk corporation would be governed by a board of directors with 27 members that represent local governments, lawmakers, financial institutions, businesses, a veterans organization and a minority- and women-owned business enterprise organization.

Richberg said the new corporation would differ from the work already done by industrial development agencies that provide tax incentives to lure developers.

“An [industrial development agency]’s responsibility is really about making it easier for businesses but it’s not really about recruiting and investing,” he said. “And that’s what this would do.”

By Joe Werkmeister

joe.werkmeister@newsday.com

Joe Werkmeister joined Newsday in 2022 and covers Suffolk County government and politics. He is a graduate of St. Bonaventure University and previously worked as the editor of two North Fork community newspapers.

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