DOING BUSINESS IN SALEM - JULY 9, 2007DOING BUSINESS IN SALEM
A Guide to
Starting or Growing
Your Business
Kimberley Driscoll, Mayor
City of Salem, Massachusetts
Lynn Goonin Duncan, AICP
Director of Planning & Community Development
Doing Business in Salem Guide
WELCOME FROM THE MAY OR
Dear Entrepreneur:
Owning a business is an exciting venture, filled with challenges. Knowing some of
these challenges, the City of Salem Department of Planning and Community
Development (DPCD) created this guide to help you navigate the process of starting
or growing your business.
Salem is a unique community in a diverse region. Clearly, it is internationally
renowned for the colonial Witch Trials, but academic and cultural institutions,
recreational venues and citywide festivals celebrate Salem of today, attracting a
healthy tourist economy and a growing residential presence to support year-round
business activity. Many consider Salem the jewel of Massachusetts’ vibrant North
Shore, and businesses here benefit from its rich mix of history, culture and natural serenity. We
hope that you decide to take advantage of the city’s popular perception as a year-round destination.
Particularly important to existing and prospective Salem business owners, the city offers an
exceptional opportunity for business development and guidance. The Salem Chamber of Commerce,
Enterprise Center at Salem State College, SBA Small Business Development, and Salem Harbor
Community Development Corporation offer competitive financing and counseling programs to get
your ideas off the ground.
As Mayor, I invite you to invest in Salem’s bright future. Today, with restored enthusiasm and
enterprise, our community is alive with development and growth. We want you to be a part of it. I
hope this Guide helps you as you start or expand your business in our great historic city.
If you have any questions, or need assistance along the way, please contact the Economic
Development Program Director in the Department of Planning and Community Development at 978 -
619-5685. Also, visit our website at www.salem.com for the most up-to-date information on the City
of Salem.
I wish you and your business much success!
Sincerely,
Kimberley Driscoll
Mayor
Doing Business in Salem Guide
TABLE OF CONTENTS
Introduction 4
Getting Started 5
Licensing and Permitting 7
Licensing and Permitting Steps
Comprehensive Pull-Out Checklist of Permits
City of Salem Contacts
State and Federal Contacts
Additional Considerations
Financial and Technical Assistance 44
Local Resources
State and Federal Resources
Additional Financial and Technical Resources
Appendix 53
Board & Commissions Meeting Dates Calendar
Comprehensive Contact Information – Local, State & Federal Resources
Maps
Signage Worksheet
Glossary of Common Business Terms
Issued July, 2007
Doing Business in Salem Guide
Contact DPCD at (978) 619-5685 for additional assistance 4
INTRODUCTION
The process of starting or expanding your business is both exciting and challenging. We know you have
lots of questions and concerns about the types of permits and licenses you will need and th e process that
goes along with obtaining them. The City of Salem is committed to making this process as
straightforward as possible.
We created this guide as a tool to help navigate the licensing and permitting process, as well as to point
you in the right direction for additional resources available to you. It is designed to be usable in its
entirety or in sections. It provides valuable information no matter what stage your business is in, from
the new entrepreneur floating the idea of starting a business to an established company looking to
expand.
Throughout the guide, you will find answers to frequently asked questions, descriptions of the different
processes and contact information for city, state, federal, and other agencies that can assist you. We
also included web-links to these different agencies, whenever possible. The guide is broken into three
different sections—Getting Started, Licensing & Permitting, and Financial & Technical Resources.
Getting Started
Provides an overview of the guide and outlines top things you should consider as you are
getting started with the opening, relocation or expansion of your business.
Licensing & Permitting
Licensing and Permitting Steps asks questions that will help direct you to the various
departments and agencies you will need to speak with to obtain any necessary permits
and licenses.
Permitting Checklist provides a comprehensive listing of all the permits and licenses
you might need, with the Departments and the fees associated with those permits.
City of Salem Contacts provides each of the various departments and boards you
might need to speak with in order to obtain licenses and permits. The section also
provides frequently asked questions.
State and Federal Contacts provides various state and federal contact information for
those agencies you might need to connect with when opening or operating your
business.
Additional Considerations provides answers to other questions you might have
regarding permits and licenses.
Financial & Technical Resources
Provides an overview of different local, state and federal resources available to you for
financial and technical assistance.
The Appendix includes different resources that you might need or find interesting, including a
comprehensive listing of the contact information for the departments and agencies mentioned throughout
the guide, a listing of city board meeting times, maps, and a glossary of business terms.
Please remember that the City of Salem is committed to your success. Use this guide as a resource, but
do not feel you have to manage the process alone. Feel free to contact the Department of Planning and
Community Development (DPCD) staff to answer your questions, point you in the right direction, and
keep you motivated throughout the process.
Doing Business in Salem Guide
Contact DPCD at (978) 619-5685 for additional assistance 5
GETTING STARTED
Often, the most difficult part of opening or expanding a new business is getting started. The City of
Salem is committed to your success and we are here to help you get started and assist you as you work
through your licensing and permitting. We encourage you to ask as many questions as needed as you
move forward and to contact the Economic Development Program Director in the Department of Planning
and Community Development (DPCD) at (978) 619-5685.
To help you get started, here are a few specific things every business owner should consider:
Zoning – Consult the City of Salem Zoning Ordinance to make sure that your
business/property meets the zoning requirements for the site. You may need a permit from
the Zoning Board of Appeals. For more information, see page 39.
Business Certificate – Most business owners need a Business Certificate, or Doing
Business As (d/b/a), from the City Clerk. This certificate allows you to open a commercial
bank account and helps prevent others from using your business name. For more
information, see page 21.
Legal Structure – Whether incorporating or forming a limited partnership, the MA
Corporations Division requires an excise tax and filing fee. Sole proprietors do not require
registration, but you should conduct a name check with the MA Secretary of the
Commonwealth. For more information, see page 41.
Signage – If your business needs a sign, you will need to apply for a Sign Permit.
Depending where your business is located, you may also need approval from one of the
City’s review boards through DPCD (Downtown Urban Renewal Area, Historic Commission or
North River Canal Corridor District). This process can take up to 3 months, so inquire early
to ensure that you can get your sign installed by your opening. For more information, see
page 33. Also see the Appendix for an overview of the sign process.
Federal Tax or Employee Identification Number (EIN) – For tax purposes, you will
need to define your business structure and obtain identification numbers from the Internal
Revenue Service (IRS) for your business and staff. For more information, see page 41.
State Taxes – You must receive a Sales Tax Vendor Number from Massachusetts
Department of Revenue (DOR). This should be done after you have applied for your federal
tax or EIN. For more information, see page 40.
Financial and Technical Assistance – The City of Salem is host to a number of dedicated
agencies committed to providing quality technical assistance to Salem businesses. In
addition, the City of Salem, through the DPCD, offers direct loan and grant assistanc e to
qualified businesses. For more information, see Section II on page 44.
Building Permit – If you will be undertaking any construction, you most likely will require a
building permit. For more information, see page 19.
Hot Tip
The number of home–based businesses is growing throughout the Commonwealth. If you are running a
business out of your home that involves seeing any clients and/or the general public, has any display of a
sign, and/or utilizes employees, you are required to obtain a Special Permit from the Zoning Board of
Appeals. You also will need to talk with the Building Inspector in the Building Department (page 19)
to find out handicapped accessibility requirements should any of the above appl y to your home-based
business.
TEN THINGS YOU SHOULD KNOW BEFORE STARTING A BUSINESS
1. Have a viable idea. Are you offering something that people want? Can you profit? Is it proven?
2. Preparation is the key to success: Write a business plan.
A business plan is a written document you create that involves researching your industry and market
trends, your potential customers, your competition, pricing, creating a marketing plan, and projecting
your revenues and expenses for three years.
Most businesses fail because they haven’t done this important preparation. You may find you need to
change your services based upon researching your competition, alter your pricing scheme, add product
lines or even add an online store.
According to the US Bureau of Labor Statistics, 33% of businesses fail in the first two years. Most did
not have business plans. Plan for success: write a plan.
3. Have industry experience.
If you have worked in the business, or doing the type of service you plan to offer, then you know the
business, its customers and competition. If you don’t know the industry, spend some time working in it
first. This will give you an advantage in your business.
4. You need to really know and understand your target clientele.
Your business should meet their needs with your goods and services.
Research your market, describe them in detail, and understand their desires.
Conduct customer surveys before your open. In order to find out what your potential customers will
want, you should conduct initial surveys. For example: how much they will pay, what they prefer to
buy, how they prefer to buy it, what they want from you, your store or service.
5. Figure out how to meet your personal financial obligations for six months to a year because it takes that
long to grow a business, minimally.
It takes time to have a successful business. Most businesses do not really take off for a few years—you
need that long to create a large customer base, generate customer-to-customer referrals, and create
long-term customer loyalty. Many businesses are still struggling financially for up to three years. If you
can make it three years, you are very likely to last ten or more. Have patience with yourself.
6. Make sure you can fund your business.
Check your personal credit and understand your personal credit situation. Pull your credit reports. Sit
down with a banker to help understand them. Figure out if you can get a commercial loan and what
you need to do to repair your credit.
7. Hire professionals to support you.
Gather together a good team of professional advisors such as an accountant, a lawyer, a bookkeeper, a
web designer.
Spend the money to make sure your business is set up for success!
8. Be prepared to go outside of the business to solicit customers.
Attending networking events, join chambers of commerce, attend to professional meetings, find other
professionals to meet with who can refer business to you, etc.
For every new customer your business gets, you will also lose one customer through attrition. The
“hustle” is a constant in business.
9. It is lonely running a business. You are often the only one you see all day. Make sure you have a
professional group you can attend to meet other business owners like yourself.
10. It is a roller coaster ride of emotions: joy, fear, anger, pride, sadness, and more. Every week you may
experience these things over again when customers cancel appointments, no one comes into the store, you
make the big sale, you get a referral, you have a big bill you have to pay, etc. It is not an ordinary 9 to 5
job, but a thrill ride with its true highs and lows.
Adapted from Salem Harbor Community Development Corporation, Advancing Community Business (ACB) seminar “10 Things
You Should Know Before Starting a Business”.
Doing Business in Salem Guide
Contact DPCD at (978) 619-5685 for additional assistance 7
LICENSING AND PERMITTING
Doing Business in Salem Guide
Contact DPCD at (978) 619-5685 for additional assistance 8
LICENSING AND PERMITTING STEPS
Navigating the maze of regulations and requirements for the various licenses and permits can be
confusing and a bit overwhelming for new, or even the most experienced, business owner. To help you
as you go through this process, we created a list of the questions you should ask yourself to determine
from which City review boards or departments you will need approval. Following this section is a
comprehensive checklist along with permit fees. You should use your responses to the questions and the
permitting checklist in conjunction with the listing of city departments and boards starting on page 19.
Step One: Basic Licensing
When starting your Salem business, you should first consider if you will need any certificates or licenses.
You may need to visit the following city departments:
CITY CLERK’S OFFICE:
YES NO
NOT
SURE
Does the title of your business differ from your name or from a corporate name?
Does your business include a bowling alley, billiards or pool?
Are you classified as a “junk collector” or “junk dealer’”?
Does your business involve auctions?
Are you or planning to become a building mover?
If you answered “yes” to any of these questions you need to obtain a Business Certificate and/or a
License from the City Clerk’s Office at (978) 619-5611. If you answered “not sure”, you should consult
with the City Clerk to determine if you will need to obtain a license for these items. Please see page 21
for additional information.
YES NO
NOT
SURE
Are you planning to become a public guide?
Does your business involve fortune telling?
Are you considered a pawnbroker?
Does your business involve shellfish and/or seaworms?
Does your business include the sale of second-hand clothing or valuables?
Are you considered a transient photographer?
If you answered “yes” to any of these questions, you are required to obtain clearance from the City’s
Special Investigator in the Police Department and will require City Council approval. Please see the City
Clerk for the necessary forms and a referral to the Police Department. If you answered “not sure”, you
should consult with the City Clerk to determine if you will need to obtain a license for these items.
Please see page 21 for additional information.
YES NO
NOT
SURE
Are you considered a contract operator?
Are you considered a drainlayer?
If you answered “yes” to any of these questions, you must first apply with the Department of Public
Services, (978) 744-3302, before obtaining a license from the City Clerk. If you answered “not sure”,
you should consult with the City Clerk to determine if you will need to obtain a license for these items.
Please see page 21 for additional information.
Doing Business in Salem Guide
Contact DPCD at (978) 619-5685 for additional assistance 9
YES NO
NOT
SURE
Does your business involve a vehicle(s) for hire?
If you answered “yes” to these uses you require approval from the Police Department’s Traffic Division,
(978) 744-0171 and the City Council. Applicants should first bring these applications to the City Clerk’s
Office who will then forward them to the Police Department. Once the application has been cleared, it
will be sent back to the City Clerk for City Council approval. If you answered “not sure”, you should
consult with the City Clerk to determine if you will need to obtain a license for these items. Please see
page 21 for additional information.
YES NO
NOT
SURE
Does your business involve limousine and/or taxi service?
If you answered “yes” to these uses you require approval from the Police Department’s Traffic Division,
(978) 744-0171 and the City Council. Applicants should first bring these applications to the Police
Department Traffic Division who will then forward them to the City Clerk for City Council approval. If
you answered “not sure”, you should consult with the City Clerk to determine if you will need to obtain a
license for these items. Please see page 21 for additional information.
LICENSING BOARD:
YES NO
NOT
SURE
Does your business involve the sale of alcoholic beverages (including on-premises
or off-premises consumption)?
Is your business a restaurant or involve the cooking, serving or preparation of food
(common victualler)?
Is your business a hotel, inn, lodging house, or bed and breakfast?
Does your business involve providing services as an autodealer?
Will your business have entertainment (such as playing music on a radio or having
live music performed on-site)?
Is your business providing services as a street vendor, hawker, peddler or sidewalk
stand?
Is your business providing service as a public amusement (ie arcades, automatic
amusement, etc.)?
Is your business providing services as a seasonal or Halloween vendor?
Will your business have an outdoor cafe or any outdoor seating?
If you answered “yes” to any of these questions you need to obtain a License from the Licensing Board
at (978) 745-9595 x5648. If you answered “not sure”, you should consult with the Licensing Board
Clerk to determine if you will need to obtain a license for these items. Please see page 29 for additional
information.
Doing Business in Salem Guide
Contact DPCD at (978) 619-5685 for additional assistance 10
Step Two: Basic Permitting
Next, you should consider whether you will need a permit from any of the City’s departments or review
boards. You should make this determination prior to the submission of any building permit applications
to the Building Department. You may be required to have your project reviewed by the following City
review boards or departments:
ZONING BOARD OF APPEALS:
YES NO
NOT
SURE
Is your proposed business allowed by the City’s Zoning Ordinance in your
proposed location?
Does your proposed business meet all the requirements of the City’s Zoning
Ordinance?
If you answered “no” or “not sure” to either of these questions, you should consult with the Building
Department at (978) 619-5641.
According to the City’s zoning ordinance, certain land uses are not permissible in certain areas of the
City and certain land uses require a “special permit” in order to be permissible. If you do not meet all
the requirements of the Zoning Ordinance, you may be able to obtain a “variance.” Please see page 39
for more information.
SIGNAGE – DEPARTMENT OF PLANNING AND COMMUNITY DEVELOPMENT:
YES NO
NOT
SURE
Will you be installing a sign or awning visible from the street?
If you answered “yes”, please answer the following additional questions. See the maps of the districts
listed below in the Appendix on page X. If you are unsure, contact the Department of Planning and
Community Development at (978) 619-5685 for more information. Also see page 33.
Is your business located in a local Historic District?
Is your business located in the downtown Urban Renewal Area?
Is your business located in an Entrance Corridor?
Is your business located in the North River Canal Corridor (NRCC)
District?
If you answered “yes” or “not sure” to any of these questions, you should consult with the Department
of Planning and Community Development (DPCD) at (978) 619 -5685 to determine whether you need to
appear before the Salem Redevelopment Authority (SRA), Design Review Board (DRB) or the Salem
Historical Commission.
All signs require a permit before being installed. The staff in the DPCD can assist you in determining
how much signage you are allowed based on the location of your business and size of your storefront.
Please see page 33 for more information on sign permits and the Appendix fo r a worksheet to help you
navigate the sign review process. Also, consult the City of Salem Commercial Design Guidelines Manual
found both at the DPCD and at www.salem.com for guidelines on sign design. NOTE: Signage
Review can take from 3 weeks to 3 months for approval.
Doing Business in Salem Guide
Contact DPCD at (978) 619-5685 for additional assistance 11
BOARD OF HEALTH:
YES NO
NOT
SURE
Is your business a food establishment or involve the sale of food?
Will your business have an outdoor cafe or any outdoor seating?
Does your business involve frozen dessert manufacturing?
Does your business involve tanning services?
Does your business provide massage or massage therapy services?
Does your business involve body art, including tattoos?
Does your business provide funeral or burial services?
Does your business involve a public or semi-public swimming pool?
Does your project require a septic system installation?
Does your business involve the transportation of offensive substances?
Does your project involve the removal of exterior paint?
Does your business involve a recreation or day camp?
If you answered “yes” to any of these questions, you need to obtain a permit from the Board of Health.
The Health Department staff can be reached at 978-741-1800. If you answered “not sure” to any of
these questions, you should consult with the Health Department in order to determine whether you will
need to obtain a permit for these items. Please see page 26 for more information.
HISTORICAL COMMISSION:
YES NO
NOT
SURE
Is your business going to erect, demolish, reconstruct or alter any exterior
architectural feature of any building or structure within one of Salem’s four local
historic districts or require new signage? See map of the historic districts in the
Appendix.
If you answered “yes” to this question, you need a Certificate of Appropriateness or Certificate of
Hardship from the Historical Commission, depending on the type of work. The staff for the Historical
Commission is located in the Department of Planning and Community Development at (978) 619 -5685.
NOTE: No other City department, office or board can review or issue a permit for your
business until you have received approval from the Commission.
If you answered “not sure” to this question, you should consult the staff for the Historical Commission at
(978) 619-5685. Please see page 27 for more information.
Doing Business in Salem Guide
Contact DPCD at (978) 619-5685 for additional assistance 12
PLANNING BOARD:
YES NO
NOT
SURE
Will your project include a building of more than 10,000 sq. ft. of new non-
residential construction?
Will your project include a building of more than 2,000 sq. ft. in an entrance
corridor? See the map of Entrance Corridors in the Appendix.
Will your project include a building of more than 6 residential dwelling units?
Will your project include new construction in the North River Canal Corridor
(NRCC) District, other than a single or two-family home? See map of the NRCC
district in the Appendix. If you answered “yes” to this question, you will also
need to submit plans to the Design Review Board as part of the Planning Board
Process. See Design Review Board, page 35.
Are you dividing a lot, creating new property lines, or constructing a roadway
for new homes or businesses?
Are you proposing a wireless communications facility, planned unit development
(PUD), or cluster subdivision?
Are you proposing construction or redevelopment in a wetlands or flood hazard
area?
If you answered “yes” to any of these questions, you need to have the plans for your project approved
by the Planning Board. The Planning Board staff is located within the Department of Planning and
Community Development and can be contacted at (978) 619-5685.
If you answered “not sure” to these questions, you should consult the Planning Board staff in order to
determine whether your project needs the approval of the Planning Board. Please see page 31 for more
information on the Planning Board procedures.
NOTE: There are certain uses that require a special permit from the Planning Board in the NRCC District
and Business Park Development District. If you are proposing a use in either of these districts, you
should consult with the Building Commissioner.
CONSERVATION COMMISSION:
YES NO
NOT
SURE
Is your project going to conduct any construction or alterat ion of land within
100 feet of wetlands or a waterway?
Is your activity going to take place within 200 feet of a river?
Will your project take place in a waterway or resource area?
If you answered “yes” to this question, you need to submit a Request for Determination of Applicability
to the Conservation Commission. The Conservation Agent is located in the Department of Planning and
Community Development at (978) 619-5685.
If you answered “not sure” to any questions, you should consult the Conservation Agent. Please see
page 23 for more information.
Doing Business in Salem Guide
Contact DPCD at (978) 619-5685 for additional assistance 13
SALEM REDEVELOPMENT AUTHORITY/DESIGN REVIEW BOARD:
YES NO
NOT
SURE
Will your project include the alteration of any building or land located within
one of the Urban Renewal Areas, including the installation of lighting, window
boxes or signs and awnings? See map of Urban Renewal Areas in Appendix.
Will your business require an outdoor cafe or any outdoor seating?
If you answered “yes” to either question, you need approval from the Salem Redevelopment Authority
(SRA) and most likely, their Design Review Board (DRB). The staff for the SRA and DRB is located in
the Department of Planning and Community Development at (978) 619 -5685.
If you answered “not sure” to this question, you should consult the staff for the SRA and DRB. Please
see page 35 for more information.
WEIGHTS AND MEASURES:
YES NO
NOT
SURE
Will your business include the use of weights, scales and measuring machines
including: airport refuelers, cord wood measures, gas station dispensers,
industrial scales, marina pumps, medical scales, oil truck meters, retail store
scales, store scanner scales, taxi cab meters or vehicle scales?
If you answered “yes” to this question, you need approval from the Sealer of Weights and Measures.
The Sealer can be contacted at (978) 745-9595 x5619. Please see page 38 for more information?
Hot Tip
Unless otherwise noted, a typical business may not operate between the hours of 10:00 pm and 6:00 am.
The Licensing Board allows some restaurants and bars to stay open until 1:00am. Transient vendors,
hawkers and peddlers cannot operate between the hours of 6:00 pm and 8:00 am. However, there are
exceptions; a vote of the City Council can allow the extension of a business’ hours or operation. Contact the
Licensing Department for more information.
Also be aware of the Massachusetts Blue Laws, which restricts certain business uses from operating on
Sundays and holidays. These laws are administered by the Division of Occupational Safety under the
authority of the Director of Labor and are enforced by the Attorney General’s Division of Fair Labor and
Business Practices.
Doing Business in Salem Guide
Contact DPCD at (978) 619-5685 for additional assistance 14
Step Three: Building Permits
Finally, you should determine whether your project will require a Building Permit from the City’s Building
Department. The following questions can help you determine whether you will need a permit from the
Building Inspector:
BUILDING PERMIT:
YES NO
NOT
SURE
Does your project involve the construction, alteration, repair, or demolition a
structure?
If you answered “yes” to this question, you will probably need to obtain a building permit from the
Building Department. You will need to answer the next four questions to determine whether you will
need to obtain a building permit for your project.
If you answered “not sure” to this question, you should consult with the Building Inspector to determine
whether you will need to obtain a building permit for your project.
Does your project include the building of a one-story detached
accessory building that exceeds 120 square feet in floor area?
Does your project include the installation of a fence(s) that is higher
than 6 feet?
Does your project include the construction of a retaining wall(s) which,
in the opinion of the Building Inspector, is a threat to public safety,
health or welfare and which would retain more than 4 feet of
unbalanced fill?
Does your project include “ordinary repairs”, which includes the
following”: Yes Not Sure
Cutting away of any wall, partition or portion thereof
Removal or cutting of any structural beam, column or other load -
bearing support;
Removal or change of any required means of egress;
Rearrangements of parts of a structure affecting the egress
requirements;
Addition, alterations, replacement or relocation of any standpipe,
water supply, mechanical system, fire protection, energy
conservation; or
Other work affecting public health or safety?
If you answered “yes” to any of these questions, you need to obtain a building permit from the Building
Department. If you answered “no” to any of these questions, you do not need to obtain a building
permit from the Building Department. Building Inspectors and Building Department staff can be reached
at (978) 619-5641.
If you answered “not sure” to any of these questions, you should consult with the Building Department
in order to determine whether you will need to obtain a building permit for your project. NOTE: Do not
use your own judgment in determining whether you will need a building permit. The staff in
the Building Department can easily determine whether you need a building permit. Please see page 19
for more information.
Doing Business in Salem Guide
Contact DPCD at (978) 619-5685 for additional assistance 15
YES NO
NOT
SURE
Will your project change the use of or any space within a building?
Will you be working on any electrical, plumbing or gas systems?
If you answered “yes” to either question, you will need to obtain a building permit from the Building
Department. Building Inspectors and the staff in the Building Department can be reached at (978) 619-
5641.
If you answered “not sure” to this question, you should consult with the Building Inspector to determine
whether you will need to obtain a building permit for your project.
Hot Tip
At least 17% of Salem’s population is disabled (blind, deaf mobility impaired, etc.). The Salem
Commission on Disabilities is the City’s advisory board that is available to provide you with free
advice/consultation regarding compliance to the American Disabilities Act, and to help you support
the disabled consumer. For more information contact the ADA Coordinator/Liaison at (978) 619 -
5604.
Doing Business in Salem Guide
Contact DPCD at (978) 619-5685 for additional assistance 16
Step Four: Miscellaneous Permits/Information
The following questions will help you to determine if you need any additional permits and where to
go to get those permits. There is also a list of Additional Considerations on page 42 that will help
you answer any other questions you might have prior to opening your business in Salem.
Do I need a permit to get a curb cut?
If a new curb cut is necessary for the off-street parking or loading for your facility, you should fill out
an application with the Department of Public Services (DPS). DPS will review your application, send
you a bill based on the cut and site conditions, and, upon payment, schedule the work. Any curb cut
in excess of 32 ft. requires City Council approval.
Department of Public Services (DPS)
5 Jefferson Ave., Salem, MA 01970; (978) 744-3302
Principal Clerk, vcoviello@salem.com
Whom should I contact to obtain an electrical permit?
The City’s Electrical Department is responsible for the issuance and oversight of all electrical permits.
The following are the permits needed from the City’s Electrical Department:
Electrical Permit Temporary, Renewed or New Service
Installation Permit
Gas/Oil Burner Installation Permit Service Panel Change Permit
Swimming Pool Wiring Permit HVAC Installation without Building Permit
Gasoline Pump Permit Electric Sign or Siding Permit
Electrical Department
44 Lafayette St., Salem, MA 01970; (978) 745-6300
Electrician, jgiardi@salem.com
What do I do if my business involves using the public waterway or public piers?
Any recreation or commercial use in Salem’s waters needs a mooring or slip permit from the
Harbormaster. A permit is also needed from the Harbormaster for any business t hat will use a public
pier or will require a mooring or launch service.
Harbormaster
51 Winter Island Rd., Salem, MA 01970
(978) 741-0098, ecook@salem.com
Businesses that include the operation of commercial fishing require approval from the Massachusetts
Department of Fish and Game, Division of Marine Fisheries.
MA Dept. of Fish and Game, Division of Marine Fisheries
251 Causeway St., Boston, MA 01970
(617) 626-1520
Businesses that involve the carrying of passengers on the water will require approval from the United
States Coast Guard Marine Safety Division.
US Coast Guard, Marine Safety Division
408 Atlantic Ave #5, Boston, MA 02110
(617) 223-8600
Doing Business in Salem Guide
Contact DPCD for additional assistance: (978) 619-5685 17
PERMITTING CHECKLIST
Pickup Location Required Obtained Fees
Board of Health
Certificate of Fitness $25
Burial or Removal of Deceased Permit $10
Body Art Permit $200 + $90/piercer
Camps (Recreation or Day) Permit $10
Catering Establishment Permit $25/event, $200 max
Food Service Establishments Permit $100-200
Food Sales Permit $50-250
Frozen Desert Manufacturing Permit $5
Massage Therapy Permit $60
Offensive Substance Transportation $60
Paint Removal (Exterior) Permit $50
Swimming Pool (Public or Semi-Public) Permit $100-200
Septic System Installation Permit $90
Tanning Facilities Permit $75
Building Department
Certificate of Inspection $40
Certificate of Occupancy $30
Building Permit $7-11 per $1000 + $5
Gas Permit Variable
Plumbing Permit Variable
Zoning Letter $30
City Clerk/Police Department
Business Certificate $10, every 4 yrs.
Fortunetelling License $25
Fortunetelling Store License $25
Junk Collector License $50
Junk Dealer License $100
Pawnbroker License $100
Shellfish and Seaworms License $10
Second-Hand Clothing License $50
Second-Hand Valuables License $100
Transient Photographer License $50
Vehicles for Hire $50 + $10/driver
Other: ________________
Planning and Community Development (DPCD)
Conservation Commission Variable
Historical Commission Variable
Planning Board Variable
Salem Redevelopment Authority $0
Zoning Board of Appeals Variable
Sign Permit (from _____________________ ) Variable
Financial, Technical Assistance (Program: _________ ) $0
Fire Prevention
Fire Alarm System – New and Existing Permit Variable
Smoke Detector Compliance $20
Plans and Specifications Review $30
Sprinkler and/or Standpipe System Installation $50
Doing Business in Salem Guide
Contact DPCD for additional assistance: (978) 619-5685 18
Pickup Location Required Obtained Fees
Pre-Demolition or Pre-Blast Survey Variable
Blasting $50
Tent Permit $30
Burned Auto Report $5
Liquid Propane Installation and Storage $30
Under- or Above-Ground Storage Tank
Installation, Removal and Registration $100
Fuel Oil Burner and Storage $30
Fireworks or Theatrical Pyrotechnics Display $50
Spray Booth Installation and Paint Storage Variable
Kerosene Heater $25
Flammable Fluids Storage $25
Black or Smokeless Powder Storage $25
Welding and/or Cutting $25
Repair Garage or Service Station Operation $25
Tank Trunk Inspection $50
Site Assessment Report $30
Fire Report $5
Summer Camp Inspection $30
Waste Oil Storage $25
Christmas Tree Storage $10
Licensing Board
Autodealer License $100
Automatic Amusement License Variable
Common Victuallers License $50
Entertainment License $100
Liquor License Variable
Lodging House License $50
Street Vendors, Hawkers, and Peddlers License Variable
Street Performers License $0
Department of Public Services
Contract Operator License $50
Drainlayer License $50
Electrical Permit $3 per $1000 + $15
Electric Sign or Siding Permit $30/sign
Gas/Oil Burner Installation Permit $15/burner
Gasoline Pump Permit $30 + $5/add.
HVAC Installation w/o Building Permit $25
Service Panel Change Permit $20
Swimming Pool Wiring Permit $30
Temp., Renewed or New Service Installation Permit Variable
Weights and Measures
Massachusetts Department of Revenue
Sales and Use Tax Vendor Registration Certificate
United States Internal Revenue Service
Employee Identification Number
Other: __________________________
Doing Business in Salem Guide
Contact DPCD for additional assistance: (978) 619-5685 19
CITY OF SALEM CONTACTS
Building Department
120 Washington St., 3rd Floor, Salem, MA 01970; (978) 619-5641
Building Commissioner, tstpierre@salem.com
The Building Department is responsible for building and zoning issues, conducting inspections and
enforcement actions on construction projects, and maintaining publ ic properties within its charge. These
regulations and inspections insure that building construction and improvements are done in accordance
with the building code and protect public safety. The Department is divided into three groups:
Zoning Enforcement ensures compliance with the City’s Zoning Ordinance. The Building
Commissioner acts as the Zoning Enforcement Officer and interprets and determines the allowable
uses for the various properties based on the Zoning Ordinance and Building Code. For more
information about zoning, please see the Zoning Board of Appeals on page 39.
Building Office collects all Building, Plumbing, and Gas Permit Applications, reviews all plans and
application packages, and grants or denies permit requ ests. Further, it conducts all required
inspections pertaining to building permits, and grants Certificates of Inspection and/or Certificates of
Occupancy.
Public Properties is responsible for the maintenance of public properties within its charge.
The Building Commissioner and Inspectors hold regular office hours 8 am to 9 am, 12 pm to 1 pm, and 5
pm to 7 pm (Thursday only), as well as by appointment.
What is the “Building Code”?
The Building Code is a legal document that regulates the construction an d alteration of buildings. A
variety of regulations, including light, ventilation, and structural loads, are typically included in the
Building Code, which protects the public health and welfare by reducing potential construction
hazards and costs, providing construction standards, and contributing to community well being.
Who can request a Building Permit?
A Building Permit is issued to architects, engineers or licensed contractors licensed for work on
commercial property. These professionals are responsible for supervising critical aspects of the
construction. If the licensed supervisor designated on the permit application leaves the project
before completion, construction work must cease and the Building Department must be notified
immediately. A new licensed supervisor needs to be designated before construction work can
continue.
When is a Building Permit not required?
A Building Permit is not required for the following construction or alteration:
One story detached accessory building used as a tool or storage shed, playhouse or similar use, if
the floor area does not exceed 120 square feet;
Fences 6 feet high or shorter;
Retaining walls which, in the opinion of a building official, are not a threat to the public safety,
health or welfare and which retains less than 4 feet of unbalanced fill; and
Ordinary Repairs as defined in the Massachusetts Building Code - 780 CMR 2.
Ordinary repairs do not include removing any wall, partition or portion thereof, removal or cutting
of any beam, column or other load-bearing support, removal or change of any required means of
egress, or rearrangements of parts of a struct ure affecting egress requirements. Nor shall
Doing Business in Salem Guide
Contact DPCD for additional assistance: (978) 619-5685 20
ordinary repairs include additions to, alterations of, or replacement or relocation of any
standpipe, water supply, mechanical system, fire protection system, energy conservation system,
or other work affecting public health or general safety.
What are the steps in applying for a Building Permit?
1. Consult with the Building Department: Applications for a Building Permit can be obtained in the
Building Department. It is suggested that you consult with the Building Department staff when
picking up your application to determine what you will need to submit and the other departments
that will need to sign off on the Building Permit.
2. Application Package Submission: The application package must be accompanied by the necessary
required documents in addition to a complete set of working drawings with all required stamps of
approval. The plans are to be drawn to scale showing exactly what is to be built and compliance
with the State Building Code. Once your application has been reviewed and approved by the
Building Inspector, you will need to pay a fee based on the type and total cost of the project.
3. Plan Review: The Building Department will review your application for compliance with the
following codes: plumbing, wiring, handicap access, zoning, and building. If a project requires
the approval of the Planning Board, no permits can be issued by the Building Department until
the Board provides approval or conditional approval of the project. For more information on the
Planning Board, please see Page 31.
4. Approval or Disapproval of the Project : The Building Code requires that action be taken on a
Building Permit application within 30 days of the filing date. Applications are generally reviewed
in 5-10 working days. If necessary, a written list of corrections will be given to the applicant. If
approved, a Building Permit will be issued.
5. Periodic Review and Inspection: The following inspections and filings are required throughout a
building project:
Excavation inspection before any concrete is placed
Reinforcing inspection if reinforcing is used or required prior to placing concrete
Certified “As-built” survey when foundation is in place (or as otherwise directed by the office)
Foundation inspection with waterproofing in place and walls braced on 1 st deck installed (no
backfill to be placed until after the foundation is approved and braced per above)
Rough electrical, plumbing, and gas inspections signed off
Fireplace (before completing chimney and after)
Rough framing with all fire stopping in place, but prior to any insulation
Insulation inspections, after all framing corrections are done and signed off
Final electrical, plumbing and gas sign off
Smoke detector, oil burner & tank sign off (by Fire Prevention)
Final building inspections
Completed job card to be submitted to the Department after all departments have signed off.
Hot Tip
After the Building Permit work is complete, you must receive a Certificate of Occupancy from the
Building Department. Whether you’re opening a new business or renovating your current space, a
Certificate of Inspection is required from the Building Department to occupy a building.
Additionally, the Electrical Department is responsible for the issuance and oversight of all electri cal
permits in the City of Salem, and it enforces all rules and regulations of the state electrical code.
Your electrician must contact the Electrical Department for a permit.
Doing Business in Salem Guide
Contact DPCD for additional assistance: (978) 619-5685 21
City Clerk, Office of the
93 Washington St., Salem, MA 01970; (978) 619-5611
City Clerk, clapointe@salem.com
The City Clerk is responsible for various licenses, including the Business Certificate. Unless otherwise
noted, the following licenses require a fee for processing. Please see the Checklist in the Appendix for a
list of fees. All Licenses except Drainlayer/Contract Operator take two meetings for approval by City
Council. All Licenses expire December 31 of the current year. For any License for renewal that the City
Clerk receives after February 1, the fee is doubled.
How do I register my business with the City?
If the title of your business differs from your name or from a corporate name, you need a Business
Certificate, or Doing Business As (d/b/a), from the City Clerk. In addition to acting as a municipal
registration, this certificate allows you to open a commercial bank account and prevents others from
using your business name within city limits.
How do I apply for any licenses from the City Clerk’s Office?
Applications for the following licenses can be picked up at and returned to the Clerk’s Office.
Renewal terms for these applications vary.
Auctioneer
Bowling Alley, Billiards and Pool
Building Mover
Applications for the following uses can be picked up at and returned to the Department of Public
Services (located at 5 Jefferson Avenue, 978-744-3302) for initial approval. Next, the applicant
should bring the application and corresponding fee to the Clerk’s Office for processing and referral to
the City Council. They are typically approved in one meeting of the City Council. These licenses
renew annually.
Contract Operator
Drainlayer
Applications for the following uses require initial screening from the City’s Special Investigator.
Applicants should go to the City Clerk’s Office (Room 3) to pick up the forms and return it to the City
Clerk’s Office with the fee. The Clerk’s Office will send it to the Police Department. After this initial
approval, the Police Investigator will return it to the Clerk’s Office to be put before the City Council
for approval. This typically takes two meetings of the City Council for approval. These licenses
renew annually.
Fortune telling Public Guide
Fortune telling Store Second-Hand Clothing
Junk Collector Second-Hand Valuables
Junk Dealer Shellfish and Seaworms
Pawnbroker Transient Photographer
Doing Business in Salem Guide
Contact DPCD for additional assistance: (978) 619-5685 22
Applications for the following uses require approval from the Police Department’s Traffic Division
(located at 95 Margin Street, 978-744-0171) first – applicants should not bring these applications to
the City Clerk. Once approved by the Police Department, they will forward the information to the City
Clerk for City Council approval. This typically takes two Council meetings for approval. These are
annually renewed licenses.
Taxi Operator
Limousine and Taxi Cab
Applications for the following uses require approval from the Police Department’s Traffic Division,
however, you must first pick up the application in the City Clerk’s Office who will then forward the
information to the Police Department’s Traffic Division. Once approved, they will be forwarded back
to the City Clerk for City Council approval. This typically takes two Council meetings for approval.
These are annually renewed licenses.
Vehicles for Hire (pedi-cab, horse drawn carriage, amphibious vehicles or others)
Doing Business in Salem Guide
Contact DPCD for additional assistance: (978) 619-5685 23
Conservation Commission
Department of Planning and Community Development (DPCD)
120 Washington St., 3rd Floor, Salem, MA 01970; (978) 619-5685
Conservation Agent, cduques@salem.com
The Conservation Commission is responsible for protecting Salem’s coastal and inland wetland resource
areas through the implementation of the Massachusetts Wetlands Protection Act (WPA) and the City of
Salem’s Wetlands Ordinance. The Commission regulates and monitors various projects and activities that
may impact wetlands or water bodies. The Commission also works to preserve open space and wildlife
habitat and investigates reported violations of illegal construction and destruction of wetlands.
What is a wetlands?
As defined by the WPA, wetlands include both inland and coastal wetlands. Inland wetlands refer to
inland banks, marshes, swamps, wet meadows, bogs, flowing or standing surface water, area subject
to flooding, etc. Coastal wetlands are any coastal bank, salt mars h, coastal beach or mud flats,
barrier beaches, coastal dunes, rocky inter tidal area, areas subject to coastal storm flowage or
velocity waves from tidal action, and land under ocean.
What is a Riverfront Area?
The Rivers Protection Act protects nearly 9,000 miles of Massachusetts’ riverbanks – helping to keep
water clean, preserving wildlife habitat, and controlling flooding. The riverfront area is a 200-ft.-wide
corridor on each side of a perennial river or stream. A river is any natural flowing body of water that
empties into any ocean, lake, or other river and that flows throughout the year, including all
perennial rivers, streams and brooks that flow throughout the year. Rivers end where they meet the
ocean, a lake, or pond.
What projects fall under the jurisdiction of the Conservation Commission?
Any activity that is located within 100 ft. of a coastal or inland wetlands, within 200 ft. of a perennial
river and/or stream or is within an area subject to flooding (Zone A or Zone V) requires an application
for review and approval by the Commission. Since many wetlands are not always obvious, you are
encouraged to consult with the Conservation Agent, who will help you determine whether your
project falls within the Commission’s jurisdiction and whether your project will require a filing.
Additional assistance may be necessary from a wetlands biologist to determine if your project is
located in or within 100 feet of a wetlands.
What should I do if my project falls under the jurisdiction of the Conservation Commission?
If your project does fall under the jurisdiction of the Conservation Commission you should contact the
Conservation Agent to discuss your project. Applicants should file a Request for Determination of
Applicability, seeking a determination of applicability of the WPA on the proposed project from the
Commission. The Commission will review the application at a public hearing and will make a decision
and notify you in writing whether your project is not subject to the WPA, is subject to the WPA and is
approved with conditions, or is subject to the WPA and requires filing a Notice of Intent (NOI).
If your project involves the removal, filling, dredging, altering, building upon, or is located in a
Riverfront Area, within an area subject to flooding (Zone A or Zone V), or within a
wetlands/waterway or its associated 100-ft. buffer zone, you must file a Notice of Intent with the
Commission prior to beginning the work. A Notice of Intent notifies the Commission and the
Massachusetts Department of Environmental Protection (DEP) of your intentions to perform work
Doing Business in Salem Guide
Contact DPCD for additional assistance: (978) 619-5685 24
within an area subject to protection. The Commission will review all Notices of Intent at a public
hearing and will issue or deny an Order of Conditions for the work requested within 21 days of the
close of the hearing. The Order outlines the conditions under which you may perform work in a
protected area or an area within the jurisdiction of the Commission. The applicant may need
numerous environmental permits depending on the project’s scope, size and location.
Per the WPA, the applicant is also required to notify abutters located within 100 feet of the property,
as well as place a legal advertisement in the Salem News. Please speak to the Conservation Agent to
coordinate obtaining the list of abutters and posting the legal advertisement. There are also fees
associated with the filing of both a Request for Determination of Applicability and a Notice of Intent.
Please refer to the Salem Wetlands Bylaw and the DEP filing fee information regarding the cost for
your specific filing and project.
Instructions for filling out the forms, the forms, and filing fee information can be located at
http://mass.gov/dep/water/approvals/wwforms.htm.
Doing Business in Salem Guide
Contact DPCD for additional assistance: (978) 619-5685 25
Fire Prevention
29 Fort Avenue, Salem, MA 01970; (978) 745-7777
Fire Marshall, egriffin@salem.com
Fire Prevention is responsible for issuing several permits, inspections, and signature authority for
Certificates of Inspection and Occupancy. Business owners are encouraged to consult with Fire
Prevention early and often during the process of opening or expanding your business.
What’s the difference between all of the licenses that Fire Prevention is involved with?
Some permits and inspections issued by Fire Prevention are known as Annual Renewables, because
they must be renewed every year. Fees associated for the approvals are listed in the Checklist found
at the end of this Guide. The permits are:
Propane Storage for Resale Permit (commercial tanks at hardware stores)
Spray Booth Installation and Paint Storage Permit (auto body shops)
Flammable Fluids Storage Permit
Black or Smokeless Powder Storage Permit (often used in ammunition)
Welding and/or Cutting Operation Permit
Repair Garage or Service Station Operation Permit
Tar Kettle Operation Permit
Summer Camp Inspection
Waste Automotive Oil Storage Permit
Other permits, inspection and surveys are only issued once per project and do not require renewal.
Again, these approvals require fees, a list of which is available in this Guide’s Checklist. The permits,
inspections and surveys include:
Smoke Detectors/Fire Alarm System (new and existing construction)
Smoke and Carbon Monoxide Detector Compliance Permit
Plans and Specifications Review
Sprinkler and/or Standpipe System Installation Permit
Fixed Fire Extinguishing System Installation Permit
Pre-Demolition or Pre-Blast Survey
Tent (10’ x 10’ or larger; applicant must have a Building Permit first) Permit
Burned Auto Report
Liquid Propane Installation and Storage Permit
Under- or Above-ground Storage Tank Installation, Removal and Registration Permit
Fuel Oil Burner and Storage Permit
Fireworks or Theatrical Pyrotechnics Display Permit
Kerosene Heater Permit
Dumpsters and Containers
Blasting Permit
Carpet or Fabric Approval Permit
Site Assessment Report
Fire Report
Christmas Tree Storage Permit (for seasonal trees sellers)
Note: The renewal period for Tank Truck Inspection Permits is set by the Massachusetts Fire
Marshall. Fire Prevention charges a small fee for initial and renewal inspections.
Doing Business in Salem Guide
Contact DPCD for additional assistance: (978) 619-5685 26
Health Department
120 Washington St., 4th Floor, Salem, MA 01970; (978) 741-1800
Health Agent, lramdin@salem.com
The Health Department is responsible for the protection of the general health of Salem residents and
visitors. As part of their role, the Health Department is responsible for enforcing the state rules and
regulations regarding various business establishments in the city to protect public health. The Health
Department will help you determine what permits are required for your type of business.
Is there any difference between the permits that the Board of Health issues?
The Board issues several permits with varying fees and terms of renewal. The following permits are
renewed annually with the Board:
Burial or Removal of Deceased Catering Establishment
Body Art Plan Review Food Service Establishment
Body Piercing/Art Establishment Retail Food
Camps (Recreation or Day) Temporary Food
Massage Establishment Tobacco Vendors
Exterior Paint Removal/Abrasive Blasting Swimming Pool (Public or Semi-Public)
Tanning Establishment
Other permits are renewed at various terms – from seasonal to multi-year periods. Each of the
following permits also requires different application fees:
Disposal Works Installers Tanning Establishment Plan Review
Food Establishment Plan Review Offensive Substances Transportation
Mobile Food Server Swimming Pool Plan Review
Milk Pasteurization Title V (Septic System) Review
Well Application Site Assessment
Non-Alcoholic, Carbonated Beverages
Manufacturing or Bottling
Frozen Deserts and/or Ice Cream Mix
Manufacturing
What is the process for receiving a Food Permit?
1. First, contact the Health Agent to make an appointment to discuss your business and its services.
2. Upon meeting with the Agent, please bring a floor plan of your establishment and a proposed
menu to be reviewed for compliance with state regulations, which follow the 1999 U.S. Food
Code.
3. Next, the Health Agent will perform an Opening Inspection of the property. If the property
passes inspection, the business owner will receive a Food Permit.
Should I contact someone if one of my employees is sick?
The Board of Health asks employers to prevent illness from spreading in the workplace. If you or
one of your employees is sick with a communicable disease that may be passed to another person,
please contact the Public Health Nurse for Communicable Disease in the Health Department.
Doing Business in Salem Guide
Contact DPCD for additional assistance: (978) 619-5685 27
Historical Commission
Department of Planning and Community Development (DPCD)
120 Washington St., 3rd Floor, Salem, MA 01970; (978) 619-5685
Historical Commission Clerk, jguy@salem.com
The Salem Historical Commission, located within the Department of Planning and Community
Development, is responsible for the review and approval of all proposed exterior work to properties
located within Salem’s local historic districts in order to preserve the City’s unique historic character. The
Commission is also responsible for reviewing the demolition of structures 50 years or older throughout
the City.
How do I know if my business is in a Historic District?
To determine whether your business location resides in one of the four historic districts in Salem,
please consult the Historic Districts Map in the Appendix. You can also consult with the Historic
Commission staff.
When do I need Commission approval?
Property owners must receive an approved Certificate from the Commission before undertaking any
work to the exterior of properties. There is no fee for any applications. All applications must include
three or four 35mm or digital photographs of existing conditions. The more thorough your
application, the faster the process. Whenever possible, photographs, scaled drawings, catalog cuts
and paint chips can be used to illustrate the project specifications needed for the Commission to
visualize the changes in order to make a determination. There are four types of Certificates:
Certificate of Appropriateness
Property owners in historic districts are required to receive approval under a Certificate of
Appropriateness for any exterior alterations (including partial or full demolition and including new
construction) prior to commencing the work. Alterations include changes in color, material, design,
location and outward appearance of structures.
Certificate of Hardship
Property owners in historic districts may receive approval under a Certificate of Hardship for the same
type of changes as a Certificate of Appropriateness. This Certificate is used when denying a
Certificate of Appropriateness would create a substantial hardship (i.e. installing a handicap ramp.)
Certificate of Non-Applicability
A Certificate of Non-Applicability is a way to verify that a Certificate of Appropriateness is not required
for the work to be performed in an historic district. This Certificate and pictures submitted before the
work starts, protect a property owner from charges that he or she made changes without approval.
Waiver of the Demolition Delay Ordinance
For properties that are 50 years or older, outside historic districts, no demolition permit shall be
granted unless it is first submitted to the Commission for review and comment. The Commission
has a 180-day period for investigation. Property owners may request a Waiver from the
Commission, in order to waive the 180-day period, so that a demolition permit may be granted
without delay.
Is there any part of a property that the Commission does not have review over?
The Historical Commission does not review the following types of projects:
Doing Business in Salem Guide
Contact DPCD for additional assistance: (978) 619-5685 28
Landscaping plantings. Note: The Commission does have jurisdiction over barriers, such as
railroad ties or brick walls that are used in landscaping
Window air conditioners
Storm doors and storm windows
Door and window screens
Terraces, driveway materials and sidewalks (provided that they are substantially at grade level)
Antennae and similar appurtenances. Note: The Commission does have jurisdiction on satellite
dishes.
Lighting fixtures attached to the building
Interior work that does not affect the exterior
How do I apply for Commission approval? What is the process?
When planning alterations to your property, be prepared to apply for approval well in advance of the
date you wish to begin any exterior work. No work can commence until a Certificate is issued.
Applications for a Certificate of Appropriateness or Hardship and required materials must be received
by 3:00 p.m. on the Monday 16 days before a meeting in order to make the meeting agenda. All
applications for Certificates of Appropriateness or Hardship require a p ublic hearing.
Applications for a Certificate of Non-Applicability normally may be added to the agenda up to the day
of the meeting. In some cases, the Commission Clerk may issue a Certificate of Non-Applicability
without review by the full Commission after 24 hours have past from an e-mail notification to the
Commission of the application’s receipt and provided that photographs of existing conditions are
submitted with the application. The Clerk can also get expedited approval for the change of an
asphalt roof to black or charcoal gray. A public hearing is not required for this Certificate.
Applications for a Waiver of the Demolition Delay Ordinance must be submitted at least 1 week prior
to a regular Commission meeting and must include photographs to document the need for
demolition.
All Commission meetings are open to the public. The Commission must make a determination within
60 days from the date it receives the application, unless the applicant waives that requirement in
writing.
Where can I get more information or assistance?
It is suggested that the property owner call or visit the Commission staff at DPCD to discuss the
proposed alterations. The Salem Historical Commission Guidelines are located at www.salem.com,
the Salem Public Library and DPCD. These guidelines provide examples of what is historically
appropriate (or inappropriate) for Salem's neighborhoods and will help you understand what changes
are likely or unlikely to be approved. DPCD also has Commercial Design Guidelines available at
www.salem.com or you can obtain a hard copy in the DPCD office. In addition, building inventory
forms are available for review, along with various renovation guidelines, legislation and photographs
at the DPCD.
Doing Business in Salem Guide
Contact DPCD for additional assistance: (978) 619-5685 29
Licensing Board
120 Washington St., Salem, MA 01970; (978) 745-9595 x5648
Principal Clerk, bsirois@salem.com
The Licensing Board is responsible for the licensing and regulation of many different types of businesses
and events. The Licensing Board Clerk can best answer questions about licenses offered by the City.
What do I need a license for?
The Licensing Board provides licenses for the following commercial uses:
Autodealer Lodging House, Hotel, Inn, or Bed and
Breakfast Establishments
Automatic Amusement Street Performer
Common Victuallers (meaning those involved
with cooking, serving or preparing food)
Street Vendors, Hawkers and Peddlers
Entertainment Outdoor cafes
Sale of Alcoholic Beverages (both seasonal,
year-round, and one-day licenses)
Seasonal or Halloween Vendors
What is the process for obtaining a license through the Licensing Board?
The process for obtaining a license through the Board is composed of the following steps:
1. Consult with the Licensing Board Clerk. The Clerk can talk to you about the requirements of the
Board and any of the permits you may need prior to opening.
2. Application. You will need to submit one copy of your full application packet, with all the
necessary sign offs from city departments and the required fee. As the applicant, you will be
responsible for the costs of advertising in the local paper and any notices that are required.
3. Public Hearing. A public hearing will be scheduled within approximately 10 days of the submittal
of a complete application packet. You, or your representative, will be required to attend the
public hearing. At the hearing, the Licensing Board will either issue or deny your license.
4. Final Approvals (liquor licenses). In the case of licenses involving alcoholic beverages, the Board
must act on your application within 30 days. Within 3 days of local approval, the Board must
submit your application to the Massachusetts Alcoholic Beverages Control Commission (ABCC) for
review and approval. Within 7 days of receipt of ABCC approval, the Licensing Board will issue
your license.
What else should I know about obtaining a liquor license?
All individuals applying for a liquor license should be aware of the following information:
Within 10 days after the receipt of an application, the applicant must publish a notice of the
application in a Salem newspaper at the applicant’s expense and hold a hearing on the
application no sooner than 10 days after the notice appears in the newspaper.
If the proposed premises are within 500 ft. of a church, hospital or school, a copy of the
published notice must be sent, by registered mail, to any of these institutions. Applicants who
Doing Business in Salem Guide
Contact DPCD for additional assistance: (978) 619-5685 30
are inn-holders and applicants who are located 10 or more floors above street level are not
required to send these notices.
In the case of a liquor license transfer, the former owner of the premises is still liable for the
operation of the premises until a new liquor license is issued.
Applicants should know that there is a possibility that a license may not be issued. The most
common reasons that liquor license applications are denied at the state level are:
Taxes are owed to Commonwealth. Any tax delinquency must be resolved with the
Massachusetts Department of Revenue (DOR) (for both seller and buyer) before ABCC
approval.
The manager is not a citizen. This applies to all licensees.
The directors are not citizens. This applies to all licensees.
The City quota is full.
Incomplete forms are submitted or no check was submitted.
Supplemental information was not provided
Can I obtain a seasonal liquor license?
Yes, you can obtain a seasonal liquor license. The season runs from April 1 to January 15. The
process to obtain the license is the same as obtaining a regular liquor license.
Can I get a special liquor license for an event in my store?
Yes, you can obtain a one-day liquor license for an event, such as a wine-tasting, in your store. In
fact, a Special Alcoholic Beverage License is required for any activity at which alcoholic beverages are
served. A License may be issued to the responsible manager of any activity or enterprise for wine
and malt beverages only. A Police Officer is required to be at all activities where alcoholic beverages
are served and the cost of obtaining the officer is the responsibility of the applicant. Applications can
be obtained by the Licensing Board Clerk.
Can I sell items outside of my store?
The Licensing Board does allow merchants to sell items outside of their store, as long as the display
is not blocking a public way and they obtain the proper approval from the Board. Those interested in
selling items outside of their store should pick up a vendor application from the Licensing Board
Clerk. The vendor fee is waived for storeowners wishing to sell items outside their store.
Hot Tip
Did you know that you need an Entertainment License if you plan to play a radio in your restaurant
and certain other businesses? Go to the Licensing Department and all City agents with detailed
descriptions of your business use and its operations to get the most accurate information about the
permits and licenses you will need.
Doing Business in Salem Guide
Contact DPCD for additional assistance: (978) 619-5685 31
Planning Board
Department of Planning and Community Development (DPCD)
120 Washington St., 3rd Floor, Salem, MA 01970; (978) 619-5685
Planning Board Staff, alash@salem.com
The Salem Planning Board is responsible for long range community/master planning, implementation of
the Subdivision Control Act in conformance with the City of Salem Subdivision Regulations, and the
issuance of special permits for Wetlands and Flood Hazard District projects, Cluster Development s,
Planned Unit Developments (PUDs), Wireless Communications facilities, North River Canal Corridor
District Special Permits, Business Park Development Special Permits and Site Plan Review. The Board
meets regularly on the first and third Thursday of each month.
How do I know if my project requires Site Plan review?
Site Plan Review is required for all non-residential construction/reconstruction over 10,000 square feet,
unless located in the Entrance Corridor Overlay District, which is more restrictive. In the Entrance
Corridor Overlay District, Site Plan Review is required for all construction of 2,000 square feet or more.
Site Plan Review is also required if 6 or more residential units are constructed/reconstructed.
For all projects triggering this requirement, no Building Permits can be issued until the Planning Board
grants approval or conditional approval of the project. Applicants for Site Plan review are encouraged to
schedule a meeting with the Planning Board Staff in order to review Planning Board submission
requirements well in advance.
What does the Planning Board review during the Site Plan review process?
The Planning Board reviews adequacy of:
Parking and loading facilities
Traffic and pedestrian circulation systems
Access to and from the site
External lighting
Landscaping & vegetative screening
Sewage disposal
Water distribution system, including fire protection
Drainage system
Compatibility of the architecture with nearby buildings
How do I submit my Site Plan for review by the Planning Board?
The Planning Board Site Plan review process usually follows the following steps:
1. Consult with Planning Board Staff. The Planning Board staff can talk with you about the
requirements for Site Plan Review and provide you with the necessary application.
2. Application. You will need to submit 15 copies of your application packet, along with an
application fee. A Public Hearing will be scheduled within 65 days from the date you submit
your application. As the applicant, you will be responsible for the costs of advertising in the
local paper for the public hearing.
3. Public Hearing. A public hearing will be held within 65 days of the submission of your
application and you, or your representation will need to attend. You will be called upon to
provide information and answer questions regarding your Site Plan. The Planning Board
Doing Business in Salem Guide
Contact DPCD for additional assistance: (978) 619-5685 32
review process will ultimately result in the approval, approval with conditions or denial of
your Site Plan.
The Planning Board will make a decision regarding your Site Plan within 90 days of the close of
the public hearing. In Definitive Subdivision Plans, the Planning Board will make a determination
within 90 days from the date of submission of your application. If a Preliminary Subdivision Plan
has been filed, or if 45 days has not elapsed from the submission of the Preliminary Plan to the
Definitive Plan's application, the Planning Board will make a determination within 135 days of
submission of your application.
What is an Approval Not Required (ANR) Plan?
An Approval Not Required (ANR) Plan is a plan in which lot lines are either changed or affirmed and
does not require the construction of a new roadway to serve the lots. It does not require a public
hearing and allows 21 days from the date received for the Board’s approval. Aside from this
deviation, the other steps are the same.
Does the Board review any other criteria?
Subdivision Plans are required for any division of land that is not eligible to be divided through the ANR
process. If a Subdivision Plan is required, the Subdivision Regulations of the City of Salem must b e
adhered to in all new construction of public roadways and utility services.
Furthermore, the Planning Board must review all new construction, except a single or two-family home,
located in the North River Canal Corridor (NRCC) District. The Board must a lso review all uses for the
district listed as” Special Permit Uses”.
The Planning Board also issues the following Special Permits:
Wireless communications facility
Wetlands and flood hazard
Certain North River Canal Corridor (NRCC) uses
Planned unit development (PUD)
Cluster subdivision
Business park development
Waiver of frontage
Doing Business in Salem Guide
Contact DPCD for additional assistance: (978) 619-5685 33
Planning and Community Development, Department of
Department of Planning and Community Development (DPCD)
120 Washington St., 3rd Floor, Salem, MA 01970; (978) 619-5685
The Department of Planning and Community Development (DPCD) is responsible for a wide range of
activities and responsibilities, including economic development, land use planning, affordable housing,
transportation projects, historic preservation, open space conservation, and neighborhood improvement
projects. DPCD coordinates the City’s efforts with state agencies and the regional planning commission
and it oversees the operation of the Planning Board, Conservation Commission, Historical Commission,
Zoning Board of Appeals, Harbor Plan Implementation Committee, Artist’s Row, Salem Redevelopment
Authority and Design Review Board.
What permits do I need from DPCD?
As stated above, DPCD staffs a number of boards that might affect your project. You should
reference those sections for more information about the Boards and their review process. DPCD also
is your first stop for obtaining a sign permit and provides financial resources to help your business,
which are explained further on page 46.
How do I know if I need a sign permit?
All permanent signs that can be viewed from a public way require a permit. This includes vinyl
graphics applied to windows visible from the public way. Temporary signs do not require a sign
permit, however, they can only be displayed for 14 days and must be hung inside the window, taking
up a maximum of 30% of the window. In the Urban Renewal Area, temporary signs can only take up
a maximum of 20% of the window.
What is the process for obtaining a sign permit?
Applications for all sign permits are processed through DPCD and the permit is then issued by the
Building Department. The process for obtaining a permit varies depending on where you are located
in the city. Your first step will be to check in with the staff at DPCD to confirm whether you fall into a
local Historic District, downtown Urban Renewal Area, Entrance Corridor, or the North River Canal
Corridor (NRCC) area. You can also reference the maps located in the Appendix.
The following outlines the review process for each of these areas:
Local Historic District – Signs located in a local historic district must be approved by the Salem
Historical Commission under a Certificate of Appropriateness. For more information, see page
27.
Urban Renewal Area – Signs located in one of the Urban Renewal Areas must be approved by the
Salem Redevelopment Authority and its Design Review Board. For more information see page
35.
Entrance Corridor – Signs located in one of the entrance corridors must adhere to the Entrance
Corridor Overlay District regulations, which restrict the size of the signs. The design of all
signage changes must be reviewed and approved by DPCD and the Building Department.
North River Canal Corridor (NRCC) Area – Signs located in the NRCC area must adhere to the
NRCC zoning regulations, which restrict the size of the signs. If the project requires Site Plan
Doing Business in Salem Guide
Contact DPCD for additional assistance: (978) 619-5685 34
Review, the design of all proposed signs must be reviewed by the Design R eview Board, and a
recommendation received by the Planning Board prior to action being taken on the site plan
review application.
The next step, after fulfilling any of the requirements of the location, is DPCD staff review of your
application. DPCD will ensure that the sign you are proposing adheres to the City of Salem Sign
Ordinance and that your application is complete.
After DPCD signs off on the application, it will be forwarded to the Building Department. The Building
Inspector will verify that it meets the Sign Ordinance and the Zoning Ordinance. If all requirements
are met, the Building Department will issue you a sign permit. You must have a sign permit in hand
in order to install your sign.
How long does it take to obtain a sign permit?
It can take anywhere from 3 weeks to 3 months to obtain a sign permit depending on where you are
located in the city and how complete your application is when you submit it. Applicants are
encouraged to talk to DPCD early in the business planning stages to ensure that you can install your
sign in time for your opening.
Is there any assistance available to help me with my sign?
There is a worksheet in the Appendix to help work through the sign regulations and sign permit
information is located on the city website. In addition, the DPCD staff is available to help you
navigate the process.
You can view the Commercial Design Guidelines posted on the City’s website or pick up a hard copy
at DPCD. These guidelines are intended to provide ideas, stimulate thinking and promote good
design in the commercial districts throughout Salem.
The City also offers a Storefront Improvement Program, which provides design and financial
assistance to businesses looking to complete exterior improvements to their storefront, including
signage. Eligible businesses can apply for up to $5,000 for exterior improvements to their storefront.
The program requires a match of funds by the applicant; every dollar paid by the City must be
matched by a dollar from the applicant. For more information talk to the Economic Development
Program Director in DPCD.
Hot Tip
Nearly all businesses want a sign outside their doors, but all sign p roposals need to be reviewed by
DPCD prior to being installed. Depending on… you guessed it… location, your sign designs may also
be reviewed by the Historical Commission or Salem Redevelopment Authority (SRA) and their Design
Review Board (DRB).
Doing Business in Salem Guide
Contact DPCD for additional assistance: (978) 619-5685 35
Salem Redevelopment Authority (SRA)
Design Review Board (DRB)
Department of Planning and Community Development (DPCD)
120 Washington St., 3rd Floor, Salem, MA 01970; (978) 619-5685
SRA/DRB Staff, planning@salem.com
The Salem Redevelopment Authority (SRA) and its Design Review Board (DRB) were created in 1962 to
help the redevelopment of downtown Salem and help preserve its unique character. Over the past four
decades, the SRA has made significant contributions to the revitalization of the Central Business District
in downtown Salem. Critical to this success is its commitment to preserving the social fabric and
architectural heritage of the City. The SRA and DRB meet monthly, with the SRA meeting the second
Wednesday of each month and the DRB meeting the fourth Wednesday of each month.
How do I know if my business is in an Urban Renewal Area?
To determine whether your business is located in one of the two Urban Renewal Areas, consult the
maps located in the Appendix. You can also consult with the SRA staff located in DPCD.
When do I need SRA approval?
The SRA requires that all improvements to the exterior of a structure and any changes to signage to
properties located within the Urban Renewal Areas undergo design review. The SRA utilizes their
Urban Renewal Plans in that design review. The Commercial Design Guidelines are intended to
supplement the design frameworks established by the Urban Renewal Plans and the SRA staff are
available to help you as you put together your application.
What is the review process for exterior building improvements or new construction?
All major development projects proposed in the Urban Renewal Areas are required to undergo a two -
step review process by the SRA prior to any work being started. This pr ocess involves: 1) Preliminary
Approval at the Schematic Design Review phase; and 2) Final Approval of the final design of the
project.
Applicants or their designated developers are required to attend all SRA and DRB meetings in which
the project is being discussed. No application will be reviewed without representation by
the applicant. Materials for the SRA and DRB are required to be submitted two Fridays before the
meetings (checklist available at DPCD and on the SRA web page).
Applicants should note that it takes approximately 2 -4 months for Schematic Approval and 2-4
months for Final Approval. Every effort will be made to expedite complete applications.
What if my project is minor, such as painting my storefront and adding lights?
Projects that involve minor repairs or renovations, considered “Small Projects” only require Final
Approval of the design and do not require Schematic Design Review. SRA staff can help you
determine if your project falls under this review. A checklist of submittal requirements for Small
Projects Review is available at DPCD and on the SRA web page).
Doing Business in Salem Guide
Contact DPCD for additional assistance: (978) 619-5685 36
What is the review process for signage?
All signs proposed for the Urban Renewal Areas are required to undergo review by the SRA and DRB
prior to installation. A checklist of required documents is available at DPCD and at the website: on
the SRA web page. The review process for sign installation involves the following 6 steps:
1. Applicant submits Application Packet including a completed, signed applicatio n, application fee
and all of the required documents (checklist available at DPCD and at SRA web page) two Fridays
before the next DRB Meeting. Submission to the DRB must include 7 color copies of the
entire packet.
2. The DRB reviews the application at their monthly meeting and provides a recommendation to the
SRA on the sign design. Applicants or their designated representative ar e required to attend all
DRB meetings at which their sign is discussed. No application will be reviewed without
representation by the applicant.
3. Applicant has one week from the DRB meeting to prepare the changes recommended by the DRB
and submit the final sign design packet to the SRA. This packet should include all the same
information as was provided to the DRB, with the required changes. Submission to the SRA
must include 7 color copies of the entire packet.
4. The SRA will review the final sign application packet and will vote for final approval of the
proposed sign. Applicants are not required to attend this meeting.
5. If the SRA approves the sign, the applicant is then able to file a City of Salem Sign Permit
Application with the DPCD.
6. The permit application will require approval by the Director of DPCD and the Building Inspector
prior to a permit being granted by the Building Department.
Applicants should note that it takes approximately 2-3 months before a permit will be granted from
the time the application is submitted to the DRB. Every effort will be made to expedite complete
applications.
What is the review process for outdoor cafe permits in the downtown?
The cafe permit process typically requires three meetings for approval. The review takes t he
following steps:
1. The applicant will have to present his/her application to the SRA. This initial review is to
determine if the cafe can fit in the area proposed and will not block a public way.
2. If the SRA approves the concept, they will then forward it to the Design Review Board (DRB) for
detailed review on the design of the outdoor cafe including the design of the tables/chairs, chain
or fencing around the cafe and other accessories such as umbrellas and lighting.
3. When the DRB finalizes a recommendation, it will then come back to the SRA for final approval.
The SRA will not give final approval on a café permit unless the applicant has received approval by
the Licensing Board and the Board of Health. A checklist of required documents is available at DPCD
and on the SRA web page.
What is the review process for projects located in the North River Canal Corridor?
All projects proposed in the NRCC Neighborhood Mixed Use District (see map in Appendix) that
require Site Plan Review are required to receive a recommendation by the Design Review Board
(DRB). Development shall be designed to complement and harmonize with adjacent land uses
(existing and proposed) with respect to architecture, scale, landscaping and screening.
Doing Business in Salem Guide
Contact DPCD for additional assistance: (978) 619-5685 37
The DRB review can take place concurrently with the Planning Board review; however, applicants
must have filed with the Planning Board before going before the DRB . Applicants or their
designated developers are required to attend all DRB meetings in which the project is being
discussed. No application will be reviewed without representation by the applicant.
Materials for the DRB are required to be submitted two Fridays before the meetings. Submitta ls to
the DRB require 7 copies. All copies should include the entire application packet and photographs
or photographic representations must be in color. A checklist of required documents is available at
DPCD and at the website: on the DRB web page.
The DRB meets monthly, typically meeting the fourth Wednesday of each month. If multiple
meetings are required, the DRB may schedule a special meeting. Applicants should note that it takes
approximately 1-3 months for approval. Every effort will be made to expedite complete applications.
Doing Business in Salem Guide
Contact DPCD for additional assistance: (978) 619-5685 38
Weights and Measures
120 Washington St.,4th Floor, Salem, MA 01970; (978) 619-5641
Sealer of Weights and Measures, mtracchia@salem.com
Weights and Measures enforces the law pertaining to weighing and measuring devices to protect the
interests of both buyers and sellers. The Sealer of Weights and Measures follows state standards to
inspect large and small scales, meters, scanning equipment and gasoline stations, to name a few. For
more information, please refer to the Weights & Measures webpage on the city website.
What requires inspection by Weights and Measures?
Weights and Measures inspects the following for accuracy and suitability:
Airport refuelers
Cord wood measures
Gas station dispensers
Industrial scales
Marina Pumps
Medical Scales
Oil truck meters
Retail store scales
Store scanner systems
Taxi cab meters
Vehicle scales
How often are the devices tested?
Most devices are tested annually. A seal is usually put on to show that the equipment has been
tested and found accurate. In Massachusetts the color of the seal is either green or red, changing
from odd year to even year.
Doing Business in Salem Guide
Contact DPCD for additional assistance: (978) 619-5685 39
Zoning Board of Appeals (ZBA)
Building Department
120 Washington St., 3rd Floor, Salem, MA 01970; (978) 619-5641
Zoning Enforcement Officer, tstpierre@salem.com
The Zoning Board of Appeals (ZBA) has the authority to grant “special permits” for specific uses and
“variances” or waivers to the Zoning Ordinance for certain hardships and conditions, while protecting and
preserving the general purpose and intent of the Zoning Ordinance.
What is a “Special Permit”?
Certain uses are only allowed in certain zones of the City if a Special Permit is granted by the ZBA.
For example, if a business owner wanted to open a veterinary clinic in a B-4 zoning district for
wholesale or automotive uses, s/he would need to go before the ZBA to petition for a Special Permit.
The ZBA has the authority to place conditions on any Special Permit granted.
What is a “Variance”?
A Variance is a waiver of certain requirements, typically dimensional requirements, of a zoning
ordinance. A Variance can only be granted by the ZBA if the request satisfies certain conditions
relating to the soil conditions, shape or topography of the land, literal enforcement involves
substantial hardship, and the relief may be granted without substantial detriment to the public good
and without nullifying or substantially derogating from the intent and purpose of the city’s ordinance.
An example of a Variance would be to allow an applicant to construct an addition to a dwelling
without the required side yard setback due to the particular shape of the property.
Can I get a “Variance” to change the zoning or use of my property?
No. The ZBA cannot change the zoning or allowed use of a property. Only the City Council has the
authority to rezone a property.
How do I submit a request for a Special Permit or Variance to the ZBA?
The ZBA review process is comprised of the following steps:
1. Go to the Building Department to determine whether your proposed plan for an addition,
alteration or new construction conforms to the City’s Zoning Ordinance. If your project does not
conform, you will receive a Letter of Denial for your project. You cannot apply to the ZBA
without a Letter of Denial.
2. Bring your Letter of Denial to the Building Department and pick up an Application for Variance or
Special Permit. You will need to submit 9 copies of your application, plot plan(s), the Letter of
Denial, tax certification, certified abutter list, and any other requested supporting documentation
along with a $75 application fee. Applicants must a lso pay for the required placement of two (2)
ads in the City’s newspaper. During the application process, you will be able to work with the
ZBA Administrator to develop a certified abutter list, which is a list of parties of interest in your
project area, for public notification purposes.
3. Attend the public hearing that will be held within 65 days of the submission of your application.
You will be called upon to present evidence to the ZBA regarding your position. The ZBA will
ultimately approve or deny your requested Special Permit or Variance. The ZBA will make a
decision regarding a Special Permit within 90 days of the closing of your public hearing, and will
make a decision regarding a Variance within 100 days of the filing of your application.
Doing Business in Salem Guide
Contact DPCD for additional assistance: (978) 619-5685 40
STATE AND FEDERAL CONTACTS
Massachusetts Alcoholic Beverages Control Commission (ABCC)
239 Causeway St., Salem, MA 01970; (617) 727-3040
www.mass.gov/abcc/
The ABCC is the sole agency in Massachusetts responsible for directly licensing or permitting specific
participants in the alcoholic beverages industry in Massachusetts. All manufacturers of alcoholic
beverages, all wholesalers and importers, all out-of-state suppliers of alcoholic beverages, all brokers, all
salesman, all warehouses, all planes, trains, ships, ship chandlers and most every motor vehicle
transporting alcoholic beverages in Massachusetts require direct licensing from the ABCC. Approximately
10,000 licenses and permits are issued by the ABCC annually.
Massachusetts Department of Environmental Protection (DEP)
205B Lowell St., Wilmington, MA 01887; (978) 694-3200
http://www.mass.gov/dep/
DEP works to ensure clean air and water, the safe management of toxic and hazards, the recycling of
solid and hazardous wastes, the timely cleanup of hazardous waste sites and spills, and the preservation
of wetlands and coastal resources. Depending on the nature of your business or location, the City of
Salem may refer your project to DEP for further examination and approval.
Massachusetts Department of Revenue (DOR)
100 Cambridge St., Boston, MA 02114; (617) 887-6367 or 1-800-392-6089
http://www.dor.state.ma.us/
If you will be selling products or services for which sales tax must be collected, you will need to apply for
a Massachusetts Sales Tax Vendor Number and a Sales and Use Tax Registration Certificate from DOR.
Certain businesses may also be required to pay Trustee and/or Excise Taxes. Also, most businesses are
required to pay some amount of Income Tax.
DOR has compiled a useful online reference, “Guide to Massachusetts Tax and Employer Obligations,”
which provides specific information on a variety of state tax issues. DOR also offers a free Small Business
Workshop designed to walk you through the tax issues. This workshop is co-sponsored by the IRS and
also covers important federal tax issues.
Massachusetts Division of Marine Fisheries
251 Causeway St., Boston, MA 01970; (617) 626-1520
http://www.mass.gov/dfwele/dmf/
The Division of Marine Fisheries manages the Commonwealth's living marine resources and the
harvesting of those resources by the commercial and recreational fisheries, while maintaining a diverse
number of self-sustaining fish populations at healthy levels of abundance in balance with the ecosystem.
If you will operate a commercial fishing business, you should contact the Division of Marine Fisheries.
Massachusetts Division of Professional Licensure (DPL)
239 Causeway St., Boston, MA 02114; (617) 727-3074
http://www.mass.gov/dpl/home.htm
DPL serves as the Commonwealth’s source for regulatory jurisdiction over 40 different trades and
professions. It is responsible for licensing and regulating the activities of over 330,000 individuals,
corporations and partnerships to protect the public health, safety and welfare by licensing qualified
Doing Business in Salem Guide
Contact DPCD for additional assistance: (978) 619-5685 41
individuals who provide services to consumers and by fair and consistent enforcement of the statutes and
regulations of the boards of registration.
Massachusetts Office of Consumer Affairs and Business Regulation
1 Ashburton Pl., Boston, MA 02108; (617) 727-7755
http://www.mass.gov/?pageID=ocahomepage&L=1&L0=Home&sid=Eoca
The Office of Consumer Affairs and Business Regulation protects consumers through advocacy, education
and ensuring fair, honest business practices among companies and licensees within its rule.
Massachusetts Secretary of the Commonwealth, Corporations Division
1 Ashburton Pl., Boston, MA 02108; (617) 727-7030
http://www.sec.state.ma.us/cor/coridx.htm
The Corporations Division of Secretary of the Commonwealth's Office is the repository for certain records
of over four hundred thousand business and nonprofit corporations organized or registered to do
business in Massachusetts. This site provides information and forms required to operate a corporation.
United States Army Corps of Engineers, New England
696 Virginia Rd., Concord, MA 01742; (978) 318-8580
http://www.nae.usace.army.mil/
The Corps has jurisdiction over construction or placement of structures, dredging, and dredg ed material
disposal in the waters of the United States for any project in or affecting the waters of the U.S. must
comply with the conditions of the Massachusetts Programmatic General Permit (PGP) or, in the case of
larger projects, the conditions of an Individual Permit. The Corps’ involvement sometimes parallels
review from the Conservation Commission.
United States Coast Guard, Prevention Division
408 Atlantic Ave #5, Boston, MA 02110; (617) 223-8600
http://www.uscg.mil/d1/prevention/default.htm
The Marine Safety Division protects public health and safety, the environment, national security, and U.S.
economic interests by ensuring coordinated, integrated, efficient and effective response to minimize the
consequences of pollution incidents, maritime contingencies, and incidents of national security. If you
will operate a passenger ship in Salem, you need to contact the U.S. Coast G uard for approval.
United States Internal Revenue Service (IRS)
JFK Bldg., 15 Sudbury St., Boston MA 02203; (617) 316-2850
http://www.irs.gov/
Among other duties, the IRS provides Federal Tax or Employee Identification Numbers (EINs) to identify
a business. Business owners may not transfer EINs if he or she sells or otherwise transfers their business
and the new business owner and operator may not use your EIN.
Tax information for starting a business can be found by going to www.irs.gov/businesses/index.html.
The following IRS tax publication may be useful:
Sole proprietor: #334 “Tax Guide for Small Business”
Small Business Tax Kit #454
Partnership: #541 “Partnerships”
Doing Business in Salem Guide
Contact DPCD for additional assistance: (978) 619-5685 42
ADDITIONAL CONSIDERATIONS
How do I get a tax identification number?
For a federal tax identification number, please contact the Internal Revenue Service for Form SS4.
This form is available through their website at www.irs.gov/pub/irs-pdf/fss4.pdf. You can also
contact the IRS at 1-800-829-1040 and ask for the Small Business Tax Kit #454.
Who should I contact regarding trash collection?
The Department of Public Services Trash Recycling Division is the municipal contact for questions
regarding trash collection throughout the City. Any commercial establishment which utilizes
municipal collection of solid waste and recycling shall be charged a monthly fee of $30 per month.
There is a maximum of 8 bags or containers per business. A private operator, Northside Carting,
performs curbside collection throughout the week. Contact the Department of Public Services Trash
Recycling Division for a schedule of your pick-up day and time.
Department of Public Services Trash Recycling Division
120 Washington Street, 4th Floor, Salem, MA 01970; (978) 619-5673
Principal Clerk, bconnors@salem.com
Who should I contact to have my water service or sewer turned on or connected?
The Department of Public Services will connect water or sewer to your business for a fee.
Department of Public Services (DPS)
5 Jefferson Ave., Salem, MA 01970; (978) 744-3302
Principal Clerk, vcoviello@salem.com
Who should I contact regarding the taxes on my property?
If you need information regarding the assessment of your property, you should contact the City’s
Assessor’s Office.
Assessor’s Office
93 Washington St., Salem, MA 01970; (978) 619-5608
City Assessor, fkulik@salem.com
If you need information regarding your tax bill or the payment status of your account, you should
contact the Treasurer’s Office.
Treasurer’s Office
93 Washington St., Salem, MA 01970; (978) 619-5637
Treasurer, abusteed@salem.com
If you need information regarding collection of your taxes, you should contact the Collector’s Office.
Collector’s Office
93 Washington St., Salem, MA 01970; (978) 619-5621
Collector, bceli@salem.com
Doing Business in Salem Guide
Contact DPCD for additional assistance: (978) 619-5685 43
Who should I contact if my business involves the use of vehicles as transportation for compensation?
The Massachusetts Department of Telecommunication and Energy, Transportation Division regulates
vehicles used in business such as tow companies and household movers.
MA Dept. of Telecommunication and Energy, Transportation Division
1 South Station, Boston, MA 02110
(617) 305-3559
If you will be operating a taxi business, you should first contact the Salem Police Department, Traffic
Division for a referral to the City Council. If you plan to service Logan Airport, you should also
contact Massport, Manager of Ground Transportation.
Salem Police Department, Traffic Division
95 Margin St., Salem, MA 01970
(978) 744-0171
Massport, Manager of Ground Transportation
1 Harborside Dr., Suite 200S, E. Boston, MA 02128
(617) 428-2800
Who should I contact to bid on a municipal contract?
Purchasing is a service department responsible for contracting all goods and services to support the
City. If you’re interested in doing business with the City, please talk to the Purchasing Agent.
Purchasing Department
120 Washington St., Salem, MA 01970; (978) 619-5697
Purchasing Agent, ahill@salem.com
Who should I contact regarding having my electrical service established?
You should contact National Grid in order to request new service, to reconnect or disconnect service,
to obtain your account balance and payment history, to make changes to your account information,
to change your account information, to report a power outage, to discuss credit and collection issues.
National Grid
25 Research Dr., Westboro, MA, 01582; (508) 389-2000
Who should I contact regarding having my natural gas service established?
KeySpan operates and manages natural gas distribution in Salem. If you need to connect to a
natural gas line, please consult with a KeySpan representative.
KeySpan Energy Delivery – Customer Correspondence
52 Second Ave., Waltham, MA 02451, (617) 469-2300 or (800) 233-5325
Doing Business in Salem Guide
Contact DPCD for additional assistance: (978) 619-5685 44
Blank
Doing Business in Salem Guide
Contact DPCD for additional assistance: (978) 619-5685 45
FINANCIAL AND TECHNICAL
ASSISTANCE
Doing Business in Salem Guide
Contact DPCD for additional assistance: (978) 619-5685 46
FINANCIAL AND TECHNICAL ASSISTANCE
This section identifies sources of funding and assistance from those who know what it takes to run a
successful business in Salem.
Chart of Financial and Technical Assistance Resources
This chart briefly summarizes the available programs for financial and technical assistance available
to you in the City. More information about each agency can be found in the next section of this
chapter.
$ - Those organizations offering Financial Assistance in the listed areas
- Those organizations offering Technical Assistance in the listed areas
Financing Tax Credits, Incentives B2B Networking Permitting & Licensing Business Counseling Start-up Workshops Loan Preparation Other Products and Services Local
Planning & Community Development (DPCD), Page 46 $ $
Enterprise Center, Page 47
Salem Chamber of Commerce/Main Streets, Page 47
Salem Harbor Community Development Corp., Page 47
Small Business Development Center, Page 48
Service Corp. of Retired Executives (SCORE), Page 48
North Shore Workforce Investment Board, Page 49 $
Other Resources
MA Business Resource Team, Page 50 $ $
Center for Women and Enterprise (CWE), Page 50
Commonwealth Corporation, Page 50
MassDevelopment, Page 51 $ $
MA Alliance for Economic Development, Page 51
Office of Minority and Women Business Asst, Page 52
US Small Business Administration, Page 52 $
Doing Business in Salem Guide
Contact DPCD for additional assistance: (978) 619-5685 47
LOCAL AGENCIES
Salem enjoys a reputation as the heart of Boston’s North Shore. Regional and state offices responsible
for business assistance are located right in your backyard. The following agencies are located within
Salem and are ready to help you as you move toward your business goals.
City of Salem, Department of Planning and Community Development (DPCD)
120 Washington St., 3rd Floor, Salem, MA 01970; (978) 619-5685
Economic Development Planner, planning@salem.com
The City of Salem, through DPCD, provides support to business owners by providing financial res ources
to expand and grow their business. In addition, DPCD is available to help business and property owners
navigate the City’s permitting process and refer them to the wealth of technical assistance agencies
located in Salem.
Financial Resources
DPCD provides financial assistance to local business owners through its Business Loan Program,
Storefront Improvement Program, and Tax Increment Financing (TIF) Agreements. For more information
on any of these programs, contact the Economic Development Planner in DPCD at (978) 619-5685 or
planning@salem.com. You can also find more information on the www.salem.com.
Small Business Loan Program
The Small Business Loan Program works to expand financing opportunities for local entrepreneurs,
while creating jobs and revitalizing the city’s downtown and eligible neighborhoods. The program
provides low-interest loans to qualified entrepreneurs to co ver the gap between the amount of
financing needed for an economic development project and the amount that conventional lenders can
finance. Funds are available for acquisition, construction, or rehabilitation of real property and for
financing related to the purchase of equipment, fixtures, inventory, leasehold improvements and
working capital. Terms and conditions vary.
Storefront Improvement Program
This program is designed to encourage private investment and reinvestment by new and existing
property/business owners. The program allows a one-to-one match for moderate to substantial
exterior and/or façade improvements in the designated areas. The match from the city is up to
$5,000 for each project.
Tax Increment Financing (TIF) Agreements
Tax Increment Financing (TIF) Agreements are an economic development tool that gives companies
an incentive to improve their property and/or expand their facilities in exchange for the City to
exempt the property taxation of a portion of those improvements. In addition, the company will
qualify for the State’s 5% Investment Tax Credit and would be exempt from personal property taxes.
The company continues to pay taxes on the value of the property prior to the improvements (the
“base” tax bill). The program aims to create new, permanent full-time jobs for residents of
Massachusetts. Typically projects that qualify for this program will achieve one or more of the
following goals: improve the appearance of a blighted property, add to the local tax base, return a
vacant building to active use, and stimulate future investment.
Doing Business in Salem Guide
Contact DPCD for additional assistance: (978) 619-5685 48
Enterprise Center
121 Loring Ave., Salem, MA 01970; (978) 542-7528
www.enterprisectr.org
The Enterprise Center at Salem State College is both a business incubator where start -up small
businesses may lease space in the center's building and a virtual center for North Shore entrepreneurs at
every stage of business development.
Specifically, the Enterprise Center offers:
Dozens of free programs designed to help small business owners and employees improve their
business skills
An annual Business Plan Competition aimed at finding high growth companies and helping
them find financing
An initiative to grow the creative economy on the North Shore with a part of the center
focused on creative economy businesses
Office space for start-up as well as established companies
Assistance to small businesses at every stage through free advice and help from the Small
Business Development Center, located within the Enterprise Center.
The Enterprise Center at Salem State College provides a supportive and nurturing environment for new
and expanding enterprises whose services and development efforts benefit from and contribute to the
academic, social and cultural mission of Salem State College.
Salem Chamber of Commerce/Salem Main Streets Program
265 Essex Street, Suite 101, Salem, MA 01970; (978) 744-0004
www.salem-chamber.org
The Salem Chamber of Commerce serves as the voice for member businesses, representing, advocating
and working to enhance the business and civic environment. Wit h over 600 members, the Chamber is the
largest business organization in Salem. The Chamber offers a number of networking opportunities and
sponsors events that promote the business community in Salem.
The Chamber of Commerce also oversees the Main Street program. The Main Streets approach is a
preservation-based, volunteer-driven strategy for commercial district revitalization. Seeking to recognize,
enrich and preserve the unique character of the city's neighborhood commercial districts, the Main
Streets program's success is based on a comprehensive strategy of work tailored to local needs and
opportunities. Business owners throughout the city regularly comment about the initiative’s assistance to
getting off the ground and staying informed.
Salem Harbor Community Development Corporation (CDC)
102 Lafayette St., Salem, MA 01970; (978) 745-8071
www.shcdc.org
The Salem Harbor CDC offers training and technical assistance to both start -up and existing small
businesses through its Advancing Community Business program, Small Business Technical Assistance and
Entrepreneurial Training Program. The mission of these programs is to assist low-income, female and
minority business owners with business planning, access to financing and training.
Small Business Technical Assistance
As part of its commitment to the community, the Salem Harbor CDC offers consultations to all area
businesses, beginning with an assessment of the entrepreneur’s skills and business, developing a
Doing Business in Salem Guide
Contact DPCD for additional assistance: (978) 619-5685 49
plan to help the business achieve its goals, whether it is opening a business, expanding it, assessing
its strengths and weaknesses, developing a marketing plan, obtaining a commercial loan, or any
other business goal. This service is free to low-income entrepreneurs or businesses that will primarily
serve low-income clientele.
Entrepreneurial Training Program
The Entrepreneurial Training Program is a free 20-week daytime program for qualified prospective
entrepreneurs to research, analyze and realize their business dream. The first ten weeks of the
program are held in a classroom setting, in which instructors and students assist each other in the
preparation of business plans tailored to each individual entrepreneur and guest speakers discuss all
aspects of starting and running a business. The last ten weeks of the program are unscheduled so as
to offer participants an opportunity to implement their business plans while continuing to meet with
the instructor individually.
Salem State College Small Business Development Center (SBDC)
121 Loring Ave., Suite 310, Salem, MA 01970; (978) 542-6343
http://www.salemstate.edu/sbdc/
The Salem State College Small Business Development Center (SBDC) provides free and confidential
management counseling and free or low-cost business seminars to help you raise capital or to start or
grow your business in Massachusetts.
Business counseling and workshop topics cover a wide array of management concerns. They may
include business plan development, pre-venture feasibility, buying or selling a business, financing,
cash flow analysis, marketing and personnel issues. Special programs include assistance with
international trade, minority business assistance, and state and federal government contracting.
Business counseling services are available at the Salem office in the Enterprise Center and at
chambers of commerce and community colleges across the region.
Business seminars are held at the Enterprise Center in Salem and throughout the region.
Service Corps of Retired Executives (SCORE), Northeast Massachusetts
Beverly Cooperative Bank, 73 Lafayette St., Salem, MA 01970; (978) 745-1941
http://www.scorenemass.org/
The Service Corps of Retired Executives (SCORE) provides professional guidance and information,
accessible to all, to maximize the success of America's existing and emerging small businesses.
SCORE has 389 chapters in locations throughout the United States and its territories, with 12,400
volunteers nationwide. Local chapters provide free counseling and low-cost workshops in their
communities. Both working and retired executives and business owners donate their time and expertise
as business counselors. SCORE was founded in 1964.
SCORE Counselors come with a wealth of experience from years of business management and
ownership. Our counselors come from many areas of the business world, including: accounting, banking,
engineering, human resources, law, manufacturing, marketing, real estate, retailing, insurance, and
sales.
The local SCORE office is located at the Beverly Cooperative Bank in Salem at 73 Lafayette Street.
Counseling sessions are free and take place on Tuesdays between 10:00am and 2:00pm. Contact SCORE
at (978) 745-1941 to set up an appointment.
Doing Business in Salem Guide
Contact DPCD for additional assistance: (978) 619-5685 50
Northshore Workforce Investment Board
North Shore Career Center of Salem, 70 Washington St., Salem, MA 01970; 978.825.7200
http://www.northshorewib.com/
The North Shore Workforce Investment Board (WIB) was established as a concerted effort among
business, education and community leaders to strengthen human resource development in a competitive
labor market.
The North Shore WIB believes and understands that a skilled workforce will ensure the State’s
competitive economic advantage. The WIB overseas the North Shore Career Center of Salem, which is
designed to help companies and individuals get available services in the simplest and most efficient
manner. These services are provided free of charge.
One Stop Services available at the North Shore Career Center for Employers include the following:
Pre-screening job applicants
Placement services
Planning and/or hosting job fairs
Listing of job openings on America’s Job
Bank
Access to recent training graduates
Access to economic data and labor market
information
Information on employment tax credits
Information about various training vendors
and programs
Access to financial support for training
programs
Customized recruitment fairs, either on-site
at the company or at the Career Center
Information on various employment laws and
regulations
Information on how to access other
company-support initiatives, such as small
business loans, relocation support, and
related programs
Doing Business in Salem Guide
Contact DPCD for additional assistance: (978) 619-5685 51
OTHER RESOURCES
Business Resource Team (BRT), Northeast Office
600 Suffolk St., 5th Floor, Lowell, MA 01854; (978) 970-1193
http://www.state.ma.us/mobd
The Massachusetts Office of Business Development is committed to assisting companies who want to
locate, expand, grow, or maintain a presence in Massachusetts. Through their six regional offices,
MOBD works with companies and municipalities to help them take advantage of available economic
incentive programs that are available. MOBD also assists companies in navigating and accessing the
technical, human, financial, training, educational and resource s necessary to expand or locate in
Massachusetts.
Committed to job creation, job retention, and private investment in the Commonwealth, MOBD leads
and coordinates the Business Resource Team (BRT), which provides a single point of contact for
businesses looking to create and retain jobs in Massachusetts. The BRT is a one-stop shop, which
aggregates government and other economic development programs and services, making them
easier to access and providing a higher level of service to businesses.
If you are a business locating to locate, expand, access working capital or hire new employees in
Massachusetts, please call the Business Resource Team Northeast Office at (978) 970 -1193
or contact the BRT online.
Center for Women and Enterprise (CWE)
24 School Street, 7th Floor, Boston, MA 02108; (617) 536-0700
http://www.cweboston.org/
Established in 1995, CWE is a nationally recognized non-profit organization dedicated to helping women
start and grow their own businesses. CWE has served over 12,000 diverse entrepreneurs, offering
education, training, technical assistance, women's business enterprise certification and access to both
debt and equity capital to entrepreneurs at every stage of business development.
In addition, if your business is 51% women ow ned, managed and controlled, you could qualify for the
Women’s Business Enterprise National Council Certification (WBENC), which will give you access to a
world of corporate contracts. Pursue supplier diversity contracts with Fortune 500 companies and beyo nd.
The CWE Certification Specialist will discuss with you the requirements for certification, benefits to your
business, and process to become certified.
Commonwealth Corporation
The Schraft Center, 529 Main Street, Suite 110, Boston, MA 02129, (617) 727-8158
http://www.commcorp.org
The Commonwealth Corporation is a quasi-public organization responsible for administering and
delivering a wide range of public and privately-funded initiatives designed to meet the labor needs of
businesses; improve current and emerging workers’ skills; foster career success through lifelong learning;
and retain, sustain, improve and create job-generating businesses.
The Commonwealth Corporation offers two different programs for businesses: Applicant Assistance
Program (AAP) and The Economic Stabilization Trust (The Trust).
The AAP was developed to link private sector training needs with public sector training funds. Their
senior professional staff helps employers develop effective training plans and competitive applications
Doing Business in Salem Guide
Contact DPCD for additional assistance: (978) 619-5685 52
to the Massachusetts Workforce Training Fund (WTF). This is a state-level fund, operated by the
Division of Career Services, Department of Workforce Development.
The Trust lends working capital to small and medium sized, value-added businesses in the
Commonwealth. By providing loans where traditional financing is not available or where credit is no
longer extended, companies are able to implement restructuring plans to create a stable financial
future for the company and its employees. The Trust’s experienced staff also works hand -in-hand
with management to assist in the turn-around of businesses.
MassDevelopment, Northeast Office
600 Suffolk St., 5th Floor, Lowell, MA 01854; (978) 459-6100
http://www.massdevelopment.com/
MassDevelopment is the state’s leading economic development authority. It combines a private sector
business approach and a public sector mission to strengthen the state’s regional and sector economies.
The organization’s seasoned professionals increase jobs and housing in Massachusetts by providing
finance, real estate and development solutions to nonprofits, employers, developers, municipalities, and
other government offices.
Whether you are a manufacturer, nonprofit, small business or real estate developer, MassDevelopment
can structure a financing package that suits your needs. Their experienced staff has resources and
extensive financing experience to get the job done. Utilizing a wide range of financing tools, such as
development funds, tax-exempt bonds and a variety of loan guarantee programs, they work to
strengthen communities across Massachusetts.
For more information on the different programs offered through MassDevelopment, please contact the
Northeast Office.
Massachusetts Alliance for Economic Development (MAED)
892 Worcester St., Wellesley, MA 02482; (781) 489-6262
http://www.massecon.com/
The Massachusetts Alliance for Economic Development (MAED) is a private, non-profit partnership of
business, industry leaders, and government dedicated to the economic growth of Massachusetts. MAED
provides an array of services to help your company grow including: Site Finder, Information Resource,
Massachusetts Ambassadors, and Industrial and Research Park Directory.
The Site Finder is a service in which the MAED staff will conduct a customized property search if you
represent a company seeking to relocate or expand in Massachusetts and are seeking industrial, R &
D space, or a related use for a minimum of 10,000 square feet or land to develop a minimum of
20,000 square feet.
Through the Research and Information Service, MAED can help support your relocation or expansion
efforts through customized staff-supported research, extensive collection of online resources and
connecting you with individuals in key government agencies, trade associations and relevant firms
across the state.
The Massachusetts Ambassadors are a network of executives throughout Massachusetts who serve
as peer contacts for companies evaluating Massachusetts as an expansion location.
The Massachusetts Industrial and Research Park Directory is an onl ine database featuring 100
business parks in Massachusetts. This one-of-a-kind Directory features many pre-approved, fully
permitted, master planned properties offering sites that are currently ready for development.
Doing Business in Salem Guide
Contact DPCD for additional assistance: (978) 619-5685 53
State Office of Minority and Women Business Assistance (SOMWBA)
10 Park Plaza, Suite 3740, Boston, MA 02116; 617.973.8692
http://www.somwba.state.ma.us/
SOMWBA provides state and federal Disadvantaged Business Enterp rise certification and SOMWBA
certification for women and minority-owned businesses that meet all state and federal requirements and
services for those businesses. Certification allows businesses to participate in certain state and federal
business assistance programs. In addition to certification, SOMWBA also provides procurement and
marketing services, publishes a quarterly newsletter, Certified Business Bulletin and conducts advocacy
work.
United States Small Business Administration (SBA), Massachusetts
10 Causeway Street, Room 265, Boston, MA 02222; (617) 565-5590
http://www.sba.gov/ma/
The US Small Business Administration (SBA) was created in 1953 as an independent agency of the
federal government to aid, counsel, assist and protect the interests of small business concerns, to
preserve free competitive enterprise and to maintain and strengthen the overall economy of our nation.
Although SBA has grown and evolved in the years since it was established in 1953, the bottom line
mission remains the same. The SBA helps Americans start, build and grow businesses.
The SBA is charged with the responsibility of providing four primary areas of assistance to America n
Small businesses. These are: Advocacy, Management, Procurement, and Financial Assistance. Financial
Assistance is delivered primarily through SBA’s Investment programs, business Loan Programs, Disaster
Loan Programs and Bonding for Contractors.
For more information about SBA programs and services available visit the SBA website.
Doing Business in Salem Guide
Contact DPCD for additional assistance: (978) 619-5685 54
Blank
Doing Business in Salem Guide
Contact DPCD for additional assistance: (978) 619-5685 55
APPENDIX
______________________________________________________________________________
Doing Business in Salem Guide
Contact DPCD for additional assistance: (978) 619-5685 56
Blank
Doing Business in Salem Guide
Contact DPCD for additional assistance: (978) 619-5685
MEETINGS CALENDAR
This calendar shows when several municipal boards and commissions meet during the four weeks of
any given month. To verify up-to-date information, see the Meetings Calendar at www.salem.com.
Monday Tuesday Wednesday Thursday
Historical Commission
7.30 pm
120 Washington St.
Third Floor
Planning Board
7.00 pm
120 Washington St.
Third Floor
Licensing Board
6.00 pm
120 Washington St.
Third Floor
Board of Health
7.00 pm
120 Washington St.
Third Floor
SRA
6.00 pm
120 Washington St.
Third Floor
Conservation Commission
6.00 pm
120 Washington St.
Third Floor
Zoning Board of Appeals
6.30 pm
120 Washington St.
Third Floor
Historical Commission
7.30 pm
120 Washington St.
Third Floor
City Council -
Smte. On Ordinances,
Licenses & Legal Affairs
6.30 pm
93 Washington St.
Council Chambers
Planning Board
7.00 pm
120 Washington St.
Third Floor
Licensing Board
6.00 pm
120 Washington St.
Third Floor
DRB
6.00 pm
120 Washington St.
Third Floor
Conservation Commission
6.00 pm
120 Washington St.
Third Floor
Conservation Commission: 2nd and 4th Thursdays at 6:00pm at 120 Washington St., 3rd Floor.
Board of Health: 2nd Tuesday at 7:00pm at 120 Washington St., 3 rd Floor.
Historical Commission: 1st and 3rd Wednesdays at 7:30pm at 120 Washington St., 3rd Floor.
Licensing Board: 2nd and 4th Mondays at 6:00pm at 120 Washington St., 3rd Floor.
Planning Board: 1st and 3rd Thursdays at 7:00pm 120 Washington St., 3rd Floor.
Salem Redevelopment Authority (SRA): 2nd Wednesday at 6:00pm at 120 Washington St., 3rd Floor.
Zoning Board of Appeals: 3rd Wednesday at 6:30pm at 120 Washington St., 3rd Floor.
Design Review Board (DRB): 4th Wednesday at 6:00pm at 120 Washington St., 3 rd Floor.
Doing Business in Salem Guide
Contact DPCD for additional assistance: (978) 619-5685
CONTACT INFORMATION
This is a complete list of the numerous local, state, federal and private non-local departments,
offices, boards, commissions and agencies mentioned throughout this Guide.
Local
Assessor’s Office
93 Washington St., Salem, MA 01970
978.745.9595 x-5608
Building Department (Public Property)
120 Washington St., 3rd Floor, Salem, MA 01970
978.745.9595 x-5641
City Clerk’s Office
93 Washington St., Salem, MA 01970
978.745.9595 x-5611
City Council
93 Washington St., Salem, MA 01970
978.745.9595
Collector’s Office
93 Washington St., Salem, MA 01970
978.745.9595
Conservation Commission
120 Washington St., 3rd Floor, Salem, MA 01970
978.745.9595 x-5685
Electrical Office
44 Lafayette St., Salem, MA 01970
978.745.6300
Enterprise Center
121 Loring Ave., Salem, MA 01970
978.542.7528
Fire Prevention
29 Fort Ave., Salem, MA 01970
978.745.7777
Harbormaster Department
51 Winter Island Rd., Salem, MA 01970
978.741.0098
Health, Board of
120Washington St., 4th Floor, Salem, MA 01970
978.741.1800
Historical Commission
120 Washington St., 3rd Floor, Salem, MA 01970
978.745.9595 x-5685
Licensing Board
120 Washington St., Salem, MA 01970
978.745.9595 x-5648
Planning and Community Development, Dept. of
120 Washington St., 3rd Floor, Salem, MA 01970
978.745.9595 x-5685
Planning Board
120 Washington St., 3rd Floor, Salem, MA 01970
978.745.9595 x-5685
Police Department
95 Margin St., Salem, MA 01970
978.744.0171
Public Works, Department of
5 Jefferson Ave., Salem, MA 01970
978.744.3302
Purchasing Department
120 Washington St., Salem, MA 01970
978.745.9595 x-5696
Salem Redevelopment Authority (SRA)
120 Washington St., 3rd Floor, Salem, MA 01970
978.745.9595 x-5685
Salem Chamber of Commerce
265 Essex Street, Suite 101, Salem, MA 01970
978.744.0004
Salem Harbor Community Development Corp.
102 Lafayette St., Salem, MA 01970
978.745.8071
Salem Main Streets Downtown Program
265 Essex Street, Salem, MA 01970
978.744.0004
Service Corps of Retired Executives
73 Lafayette St., Salem, MA 01970
978.745.1941
Doing Business in Salem Guide
Contact DPCD for additional assistance: (978) 619-5685
Zoning Board of Appeals (ZBA)
120 Washington St., 3rd Floor, Salem, MA 01970
978.745.9595 x-5641
State
Alcohol Beverage Control Commission
239 Causeway St., Salem, MA 01970
617.727.3040
Department of Environmental Protection
205B Lowell St., Wilmington, MA 01887
978.694.3200
Department of Revenue
100 Cambridge St., Boston, MA 02114
617.887.6367 or 1.800.392.6089
Div. of Marine Fisheries
251 Causeway St., Boston, MA 01970
617.626.1520
Division of Employment and Training
70 Washington St., Salem, MA 01970
978.825.7200
Division of Professional Licensure
239 Causeway St., Boston, MA 02114
617.727.3074
Office of Business Development
600 Suffolk St., 5th Floor, Lowell, MA 01854
978.970.1193
Office of Consumer Affairs & Business Regulation
1 Ashburton Pl., Boston, MA 02108
617.727.7755
Massport
1 Harborside Dr., Suite 200S, E. Boston, MA 02128
617.428.2800
Secretary of the Commonwealth, Citizens Info. Svc.
1 Ashburton Pl., Boston, MA 02108
617.727.7030
Secretary of the Commonwealth, Corporations Div.
1 Ashburton Pl., Boston, MA 02108
617.727.7030
Salem State Small Business Development Center
121 Loring Ave., Suite 310, Salem, MA 01970
978-542-6343
Office of Minority and Women Business Asst.
10 Park Plaza, Suite 3740, Boston, MA 02116
617.973.8692
Transportation Division
1 South Station, Boston, MA 02110
617.305.3559
Federal
Army Corps of Engineers, New England
696 Virginia Rd., Concord, MA 01742
978-318-8580
Coast Guard, Marine Safety Division
408 Atlantic Ave #5, Boston, MA 02110
617.223.8600
Federal Trade Commission
101 Merrimack Rd., Boston, MA 02222
617.424.5960
Internal Revenue Service
JFK Bldg., 15 Sudbury St., Boston MA 02203
617.316.2850
Small Business Administration,
Massachusetts
10 Causeway St., Room 265, Boston, MA 02222
617.565.5590
Private Non-Local
Center for Women and Enterprise
24 School Street, 7th Floor, Boston, MA 02108
617.536.0700
Mass. Alliance for Economic Development
892 Worcester St., Wellesley, MA 02482
781.489.6262
MassDevelopment
600 Suffolk St., 5th Floor, Lowell, MA 01854
978.459.6100
Doing Business in Salem Guide
Contact DPCD for additional assistance: (978) 619-5685
MAPS
Please click on the links below:
Local Historic Districts
North River Canal Corridor District
Urban Renewal Areas
Zoning Map (including Entrance Corridors)
Note: In the printed version of this guide, the maps listed will follow this page.
Doing Business in Salem Guide
Contact DPCD for additional assistance: (978) 619-5685
SIGNAGE WORKSHEET
Please click on the link below:
Salem Sign Ordinance Worksheet
Note: In the printed version of this guide, the worksheet listed will follow this page.
Doing Business in Salem Guide
Contact DPCD for additional assistance: (978) 619-5685
GLOSSARY OF BANKING, BUSINESS AND FINANCIAL TERMS
There are several terms that business owners should know before creating a business plan, applying
for a loan, or operating a successful enterprise. Please use this glossary often to better acquaint
yourself with the lingo.
A B C D E F G H I J L M N O P Q R S T U V W
A (Back to Glossary)
Accountant – A financial advisor who keeps, audits and inspects the financial records of indi viduals or
businesses and prepares financial and tax returns.
Accounting Period – A regular period of time, such as a quarter or year for which a financial statement
produced.
Accounts Payable – Debts owed to creditors.
Accounts Receivable – Debts owed to a business, usually due from customers for goods or services
purchased from the business.
Accrued Interest – Interest earned but not yet credited to an account.
Amortization –
• An accounting practice of gradually decreasing an asset’s book value spreading its depreciation over
time.
• The gradual reduction of a dept by making periodic principal payments.
Annual Percentage Rate (APR) – The cost of credit on an annual basis. APR is expressed as a
percentage, resulting from an equation that considers three factors: the amount financed, the finance
charge and the terms of the loan.
Annual Percentage Yield (APY) – The return earned on an investor’s capital investment, expressed as
a percentage.
Appreciation – An increase in the value of an asset.
Asset – Anything that has commercial or exchange value that is owned by a business or an individual.
Asset-Based Loan (ABL) – Financing that provides credit secured by a company’s balance sheet
assets. Such as inventory, accounts receivable or other collateral other than real estate.
Assign – To transfer ownership of an asset to another party by signing a document.
Audit – Inspection and verification of financial accounts records and accounting procedures.
Audit Trail – A chronological record of systems activity or banking transactions that is sufficiently clear
and detailed to enable reconstruction and examination of a sequence of events.
Available Balances – The balances in an account that can be invested, disbursed or wired out.
B (Back to Glossary)
Balance Sheet – Financial statement showing assets on the left side and liabilities on the right. A
balance sheet provides an overview of a company’s financial position at the given time, usually at the
close of a month. Unlike a profit and loss statement, which shows the result of operations over a
period of time, a balance sheet shows the state of affairs at one point in time.
Balance Reporting System – A system whereby a corporate customer is provided with detailed
account activity and balances daily. These systems are often automated and on-line.
Doing Business in Salem Guide
Contact DPCD for additional assistance: (978) 619-5685
Balloon Payment – The last payment on a loan, significantly larger than previous installments, which
pays the loan in full.
Bank Statement – A periodic statement of a customer’s account detailing credits (deposits) and debits
(withdrawals) posted to the account during a specific time period and the book balance as of the
statement cut off date.
Basis Point – One basis point is calculated as 1/100th of a percentage point.
Boilerplate – Standardized "fine-print" language in a contract or other agreement detailing terms and
conditions.
Break-Even Point – Volume of sales at which total costs equal total revenues. Sales above this volume
generate profits.
Broker – Individual or company authorized to buy or sell something for another party without ever
owning the goods.
Business Plan – A detailed description of a new or existing business, including the company’s product or
service, marketing plan, financial statements and projections and management pr inciples.
Bottom Line – The net profit or loss from a business.
C (Back to Glossary)
Capital – Property of a business, including money, used to conduct its business.
Capital Expenditure – Purchase of long-term assets, especially of equipment, used in manufacturing a
product.
Cash Flow – Incoming cash less outgoing cash during a given period.
Cash Management – The systematic gathering of information about a business’ collections,
disbursements, and balances and the use of that information to effectively manage the funds
available to the business.
Character – The combination of qualities or features especially moral or ethical strengths that
distinguishes one person from another. Character is an extremely important consideration for
lenders when giving loans.
Chief Executive Officer (CEO) – The person who holds the highest position of authority within a
company or organization.
Chief Financial Officer (CFO) – The person who holds the highest financial authority within a company
or organizations. Responsibilities include handling funds, signing checks, keeping financial records
and doing financial planning.
Closely Held Business – A business privately owned and run by a few individuals. If the individuals are
related, also know as a Family Business.
Collateral – Property that is offered to secure a loan or other credit and that becomes subject to seizure
upon default.
Commercial Credit – Short-term credit extended by a seller to the buyer to finance the purchase of a
product or service.
Compensating Balance – Money required by a bank to be left in a deposit account as part of a loan
agreement.
Compound Interest – Interest earned on previously accumulated interest as well as the principal.
Controlled Disbursement – A checking account service that provides a detailed summary of all activity
having an impact on a customer account each business day.
Doing Business in Salem Guide
Contact DPCD for additional assistance: (978) 619-5685
Corporation – Form of business ownership that is a legal entity on its own in which stockholders and
the board of directors are in control.
Covenant – A promise in a debt agreement that certain things will happen and others will not.
Credit Advice – A written bank notice that describes the crediting of funds to a specific account.
Credit Bureau – Company that compiles and maintains information on consumer credit and provides the
information to potential creditors for a fee.
Credit Rating – Evaluation of an individual or corporation’s history of repaying past loans. Credit
ratings are used as a benchmark to assess the future ability of a creditor to pay back loans.
Current Ratio – Calculation of current assets divided by current liabilities, measuring the ability of a
company to pay its current obligations from current assets.
Current Assets – Cash or other assets that the business expects to use in the operation of the company
within one year.
Current Liabilities – Debts that the business expects to pay within one year.
Current Yield – The dividends or interest paid, expressed as a percentage of the current price of a
security; also known as the current rate of return.
D (Back to Glossary)
Debit Advice – A written bank notice that describes the withdrawal of funds from a specific account.
Debt – An obligation to repay money, goods or services in accordance with an agreement.
Debt Ratio – Calculation of total liabilities divided by total liabilities plus capital, measuring the debt level
of the business (leverage).
Debenture – Debt secured by the creditor based on the general creditworthiness of the debtor, as
opposed to security based on specific assets.
Default – Failure of a borrower to make interest and/or principal payments when due.
Demand Deposit Account (DDA) – Funds that are available to a bank customer at any time and which
require no advance notice of withdrawal. A non-interest bearing checking account is the most
common form of a DDA.
Demand Loan – A loan with no fixed maturity date, and payable at the discretion of the bank.
Deposit Cutoff – Time of day before which checks must be deposited at a bank in order to ensure that
the funds are credited on the same day.
Depreciation – Decrease in the value of equipment from wear and tear and the passage of time.
Depreciation on business equipment is generally deductible (over a period of time) for tax purposes.
Direct Loans – Financial assistance provided through the lending of federal monies for a specific period
of time, with a reasonable expectation of repayment. Such loans may or may not require the
payment of interest.
Disaster Loans – Various types of physical and economic loan assistance are available to individuals and
businesses that have suffered loss due to natural disaster. This is the only SBA loan program
available for residential purposes.
Disbursement – Payment made to satisfy a debt or o ther financial obligation.
Discount Rate – The rate of interest charged by the Federal Reserve on loans it makes to member
banks. This rate has an influence on the rates banks charge their customers.
Distribution – Payment made to the owner(s) of an asset, such as stock dividends or funds in a
retirement plan.
Doing Business in Salem Guide
Contact DPCD for additional assistance: (978) 619-5685
Dividend – Distribution of earnings to shareholders.
E (Back to Glossary)
Earnings Credit Rate (ECR) – Rate used by a bank to determine the earnings allowance for a
customer’s demand deposit balances. Such allowances are used to offset bank fees. This rate is
usually indexed to some market rate.
Electronic Funds Transfer System (EFTS) – The paperless transfer of funds.
Endorsement – Refers to the signature placed on the back of a check which transfers that check or
note to another party.
Enterprise – A business venture.
Equity – The value of an asset that exceeds any claim or lien on it. In banking, the difference between
the market value of an asset and the amount of claims (such as mortgages) against it. In investing,
equity refers to financing by means of shareholders investment in a venture, usually through stock.
Equity financing is the major alternative to debt financing (borrowing.)
Escrow – Temporary deposit with a third party of assets by agreement between two parties to a
contract. The money is released when the conditions of the contract have been met.
Expense Account – Account often used by salespersons or executives for travel and entertainment
expenses.
Extraordinary Items – Unusual or nonrecurring event that must be explained to shareholders.
F (Back to Glossary)
Factoring – Type of accounts receivable financing in which receivables are assigned to a factoring
company which is responsible for collecting the receivables.
Federal Deposit Insurance Corporation (FDIC) – A federal agency that guarantees (within limits)
funds on deposit in member banks and performs other functions, such as making loans to or buying
assets from member banks to facilitate mergers or prevent failures.
Federal Reserve – The central money authority of the United States. The Federal Reserve system is
divided into 12 districts, each having its own reserve bank. Each of the 12 regional banks is owned
by the member bank in its district.
Fiduciary – Person or company entrusted with assets owned by an-other party (beneficiary), and is
responsible for investing the assets until they are turned over to the beneficiary.
Financial Projections – Estimates of the future financial performance of a company.
First In, First Out (FIFO) – A system of inventory valuation where items purchased earliest are
considered to have been used first in the firm’s operations. The result is that the cost of items
purchased most recently is assigned to the inventory on the firm’s financial statements.
Fiscal Year – Any 12-month period used by a company or government as an accounting period.
Float – The processing period between the time that a check is presented for payment and t hen
delivered to the issuer’s bank for payment. During this period, the issuer is still earning interest on
his money and the payee is waiting for funds to be collected.
Foreign Exchange – The trading in or exchange of foreign currencies in relation to U.S. funds or other
foreign currencies.
G (Back to Glossary)
General Ledger (GL) – Consolidated summary books of account for a business entity. The GL provides
the bases for all published statements of condition.
Doing Business in Salem Guide
Contact DPCD for additional assistance: (978) 619-5685
Goodwill – An intangible asset that arises from considerations such as a company’s strong reputation,
favorable location and good customer relations.
Grace Period – Time allowed a debtor in which the creditor will not undertake legal action when
payment is late.
Gross Profit – Revenues of the business before consideration of operating expenses, calculated by
subtracting cost of goods sold from net sales.
Guarantee – Pledge by a third party to repay a loan in the event that the borrower cannot.
Guaranteed/Insured Loans – Programs in which the federal government makes an arrangement to
indemnify a lender against part or all of any defaults by those responsible for repayment of loans.
Guarantor – A third party who promised to repay a loan if the borrower does not.
H (Back to Glossary)
Home Equity Line of Credit – Credit line offered by banks and brokerage firms that allow a
homeowner access to the built-up equity in his or her home.
Hypothecation – The pledging of property as collateral for a loan. The bank is not given the title to the
property, but has the right to sell it in the event of default.
I (Back to Glossary)
Identification Number – a/k/a EIN or FIN. A number obtained by a business from the IRS by filing
application form SSA. This number is to be shown on all business tax returns, documents and
statements. Wholesalers often request this number when offering wholesale prices to retailers.
Income Statement – Financial statement that provides a historical perspective about a company’s
revenues, costs, and profitability for a specific time period. Also called profit and loss statement.
Incorporation – A legal process through which a company receives a charter and the state in which it is
based allows it to operate as a corporation. A corporation is a legal entity that is separate from its
owners, the shareholders. No shareholder of a corporation is personally liable for the debts,
obligations or acts of the corporation.
Incubators – Incubators provide a facility within which a number of enterprises may share services that
are common business overhead expenses, such as meeting areas, secretarial services, and
accounting and bookkeeping. In this manner they encourage entrepreneurship and minimize
obstacles to new business formation and growth.
Indemnity – Obligation of one party to reimburse another party for losses that have occurred or which
may occur.
Inventory – Value of a business’ raw materials, work in process, supplies used in operations, and
finished goods.
Investor – Individual who takes an ownership position in a company, thus assuming risk of loss in
exchange for anticipated returns.
Idle Funds – Available funds in an account, in excess of the compensating balances requirement, that
have not been invested or put to use.
Insolvency – The state of being unable to pay one’s debt obligations when they become due.
Installment Loan – Loans that are repaid in fixed, periodic payments.
J (Back to Glossary)
Joint Account – Any investment, charge, bank account or other account that lists two or more persons
who share equally in the rights and liabilities associated with the account.
Doing Business in Salem Guide
Contact DPCD for additional assistance: (978) 619-5685
L (Back to Glossary)
Lease Financing – A specialized area of equipment finance whereby the owner of a specific piece of
equipment agrees to rent the equipment for a specified time period to the user of that equipment.
Letter of Credit (LOC) – An instrument issued by a bank to an individual or corporation, by which the
bank substitutes its own credit for that of the individual or corporation.
Leverage – The process of incurring debt in order to continue or expand the scope of a business
operation. An enterprise is said to be highly leveraged if it relies heavily on d ebt financing as
opposed to equity financing.
Liability – A financial obligation, or the cash outlay that must be made at a specific time to satisfy the
contractual terms of such an obligation.
Lien – Legal right to hold property of another party or to have it sold or applied in payment of a claim.
Line of Credit – A financial institution’s promise to lend up to a specific amount during a specific time
frame.
Liquid Assets – Business assets easily convertible into cash.
Liquidation – Sale of the assets of a business to pay off debts.
Local Development Corporation – An organization, usually made up of local citizens, designed to
improve the economy of the area by inducing business and industry to locate there. A local
development corporation usually has financing capabilities.
Loan – The rental of money.
Loan Agreement – A document that outlines the terms and conditions of a loan.
Lockbox – A service provided by the bank whereby the customer’s mail, containing payments, bypass
corporate offices and is sent directly to the bank for deposit. This reduces the collection float.
London Inter-bank Offered Rate (LIBOR) – An international inter-bank rate, sometimes used as a
pricing mechanism for commercial loans.
M (Back to Glossary)
Magnetic Ink Character Recognition (MICR) – The process by which the information magnetically
encoded in the printed characters; located on the bottom of checks is optically scanned and read by
computer.
Money Market Account – A limited-transaction, interest-bearing corporate or personal account.
Mutual Funds – A fund operated by an investment company that raises the money from shareholders
and invests it in stocks, bonds, options, commodities or money market securities.
Marginal Cost – Additional cost associated with producing one more unit of output.
N (Back to Glossary)
Net Income – Sum remaining after all expenses have been met or deducted: net profit or net loss.
Net Worth – Excess of assets over debt.
Non-bank Lenders – Any commercial lender not classified as a bank. Examples include investment
companies, savings & loan associations, credit unions, lending units of major corporations, mortgage
companies, venture capitalists, development corporations, insurance compani es, and independent
lenders.
Negotiable Instrument – An unconditional order or promise to pay an amount of money, easily
transferable from one person to another. Examples include checks, promissory notes or bills of
exchange.
Doing Business in Salem Guide
Contact DPCD for additional assistance: (978) 619-5685
Net Worth – The excess of assets over liabilities.
Note – An instrument that outlines the repayment terms of a loan.
Not Sufficient Funds (NSF) – A term indicating that the amount of a requested withdrawal is greater
than the amount of money currently in the account.
O (Back to Glossary)
Operating Expenses – Costs associated with the day-to-day activities of the business.
Operating Profit/Loss – Income (or loss) before taxes and extraordinary items (resulting from
transactions other than those in the normal course of business) are deducted.
Outsource – To obtain products or services formerly delivered in-house from an external supplier.
Overdraft – The result of drawing checks on a bank account for more than the balance of the account.
Overhead – Business expenses not directly related to a particular good or service produced. Examples
are insurance, utilities, and rent.
P (Back to Glossary)
Partnership – A company owned by two or more people, who are jointly and personally liable for debts
and assets of the company. General partners, who have control, have unlimited liability; limited
partners have limited liability.
Prime Rate – The interest rate that banks charge their best commercial customers. Rates charged to
other borrowers are expressed in terms of the prime rate plus a number of percentage points.
Principal – The currently unpaid balance of a loan, not including interest owed.
Profit Sharing – Compensation arrangements whereby employees receive additional pay or benefits
when the company earns or increases profits.
Prompt Pay – If federal government agencies do not pay invoices for goods and services within 45 days
of billing, they have to pay interest to the vendor on any amount overdue.
Personal Identification Number (PIN) – A code, usually four or seven digits long, that customers
use to access their accounts at ATM locations and when conducting transactions by phone.
Power of Attorney – The legal contract by which one party is authorized to act on behalf of anoth er.
Prime Rate – The interest rate banks charge tot their most creditworthy customers. Also refereed to as
the Base Lending Rate (BLR)
Profit – What is left after taxes are paid.
Pro Formas – Financial statements prepared based on assumptions of future ev ents that will affect the
expected condition of the company.
Q (Back to Glossary)
Qualified Plan or Trust – An employer’s plan or trust for the benefit of his or her employees or their
beneficiaries. Usually used with retirement plans, a qualified plan or trust entitles the employer to
deduct the payments made to the plan or trust for income tax purposes.
Quasi-Public Corporation – A corporation that is operated privately but with a public mandate and
sometimes with government backing.
Doing Business in Salem Guide
Contact DPCD for additional assistance: (978) 619-5685
R (Back to Glossary)
Receivable Financing – Type of financing in which a business borrows money with the expectation of
repaying it quickly upon the receipt of certain receivables. The receivables are pledged as c ollateral
on the loan.
Receivables – Unsettled claims and transactions representing money owed to a creditor, usually the
result of a sale of the creditor’s product or service. Also referred to as Accounts Receivable and listed
as a current asset on the balance sheet.
Retained Earnings – Net profits kept to accumulate in a business after dividends are paid.
S (Back to Glossary)
Seasonality – Changes in business, employment or buying patterns, which occur predictably at given
times of the year.
Seed Money – Funds used to start a new business or to finance a new venture by an existing firm.
Simple Interest – Interest paid only on the principal of a loan. No interest is paid on interest accrued
during the term of the loan.
Sole Proprietorship – Business or financial venture in which the owner has full control and liability.
Stale Dated Check – A check dated six months or more prior to being cashed.
Stop Payment – A depositor’s instructions to the bank directing it to dishonor a specific check.
Surety Bonds – Surety bonds provide reimbursement to an individual, company or the government if a
firm fails to complete a contract. SBA guarantees surety bonds much like SBA’s guaranteed loans.
T (Back to Glossary)
Tax Number – A number assigned to a business by a state revenue department that enables the
business to buy wholesale without paying sales tax on goods and products. Contact the state
government’s department of revenue.
Term Loan – Credit granted to a company to finance capital equipment, fixed assets or real estate with
a repayment term of greater than one year.
Time Deposit – An account on which time limitations on withdrawal are required in order to receive a
given return. Penalties for early withdrawal are usually applicable. An example of a time deposit is a
Certificate of Deposit (CD)
Transit Routing Symbol (TRS) – The number on the face of a check that facilitates routing for
collection funds from the drawee bank by the Federal Reserve. TRS appear in the magnetically
encoded line at the bottom of the check as well as in the upper right-hand corner.
U (Back to Glossary)
Uncollected Funds – The portion of a deposit balance not yet collected by the depository bank.
Unsecured Loan – An obligation not backed by specified assets.
U.S. Treasury Bills (T-Bills) – Direct obligations of the U.S. Government. T-bills with three and six
month maturities are sold weekly so that bills maturing each week up to six months are available in
the secondary market. T-bills are sold at a discount, with the amount of the discount determining
the investment return.
V (Back to Glossary)
Variable Cost – Any costs which change significantly with the level of output.
Variable Rate – A rate on a note that is adjusted up or down each time the base rate changes.
Doing Business in Salem Guide
Contact DPCD for additional assistance: (978) 619-5685
Variance – A variance allows an exception to certain development standards such as setbacks, building
height, lot dimensions and other zoning code requirements.
Venture Capital – Money used to purchase an equity stake in a new or existing enterprise; equity, risk
or speculative investment capital. This funding is usually provided to new or existing firms that
exhibit potential for above-average growth.
W (Back to Glossary)
Wire Transfer – A transaction by which funds are moved electronically from one bank to another upon
the customer’s instructions.
Withdrawal – The removal of money or valuables from a bank or other place of deposit.
Working Capital – The difference between the firm’s current assets and current liabilities. This is also
the amount of money available for use in operating the business.
Z (Back to Glossary)
Zero Balance Account (ZBA) – A unique type of corporate checking account that companies use for
disbursement control, where a daily closing balance of zero is maintained. At the close of each
business day, a transfer of funds is made from a corporation’s master account to cover the total
amount of checks drawn on the ZBA that arrived for payment that day. This returns the account to a
zero balance. Corporations that want central cash control while allowing decentralized disbursing
operations typically use ZBAs. (Note: The letters ZBA also stand for the City of Salem’s Zoning Board
of Appeals.)
Zoning – The public regulation of the use of land. It involves the adoption of ordinances that divide a
community into various districts or zones. Each district allows certain uses of land within that zone,
such as residential, commercial, or industrial. Typical zoning regulations address building height,
bulk, lot area, setbacks, parking, signage, and density.
Doing Business in Salem Guide
Contact DPCD for additional assistance: (978) 619-5685
NOTES