DOING BUSINESS IN SALEM - 2023A Guide to Starting and Growing Your Business 2023
DOING
BUSINESS IN
SALEM
Dominick Pangallo, Mayor
City of Salem, Massachusetts
Tom Daniel, AICP
Director of Planning & Community
Development
Kate Newhall-Smith
Principal Planner
Photo by Ty Hapworth
Doing Business in Salem
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WELCOME FROM THE MAYOR
Dear Entrepreneur:
Owning a business is an exciting venture, filled with challenges.
Realizing 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. We’re known for our
rich maritime history, for being the birthplace of the National Guard,
and for the infamous Witchcraft Trials of 1692. Salem is also a vibrant,
pedestrian-friendly city where residents, students, workers, and over a
million tourists annually can easily visit historic architecture, unique
attractions, world-famous museums, and an eclectic mix of shops and
dining options. Many consider Salem the jewel of Massachusetts’s
vibrant North Shore and businesses here benefit from a rich mix of
history, culture, and natural serenity. We hope that will take
advantage of Salem’s popularity as a year-round destination!
Particularly important to existing and prospective Salem business owners, the City offers
extensive opportunities for business development and guidance. The Salem Chamber of
Commerce, Salem Main Streets, the Enterprise Center at Salem State University, SBA Small
Business Development, Mill Cities Community Investment, MassDevelopment, and North Shore
Community Development Coalition offer programs such as competitive financing and counseling
to help you 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 vibrancy and growth - and we want you to be a part of
its success.
I hope this guide helps 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 Principal Planner in the
Department of Planning and Community Development at 978-619-5685. Also, visit
www.salemforbusiness.com and salemma.gov for the most up-to-date information on business
resources and the City of Salem.
I wish you and your business much success!
Sincerely,
Dominick Pangallo
Mayor
Doing Business in Salem
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TABLE OF CONTENTS
Introduction 4
Getting Started 6
To Be Considered
10 Things You Should Think About Before Starting a Business
What Space Do You need
Licensing and Permitting 8
Licensing and Permitting Steps
Comprehensive Pull-Out Checklist of Permits
City of Salem Contacts
State and Federal Contacts
Additional Considerations
Technical Assistance 43
Local Resources
Planning
Licensing
Main Streets
Chamber
North Shore CDC
State and Federal Resources
Enterprise Center
MA Office of Business Development
Small Business Administration
Financial Resources 43
Local Resources
Small Business Loan Program
Façade Improvement Program
Private Financial Resources
Salem Loan Fund
State and Federal Resources
Economic Development Incentive Program
Opportunity Zones
How to be a Good Business Neighbor 52
Ribbon Cutting
Plastic Bag Ban
Shoveling
Doing Business in Salem
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Solid Waste and Recycling
Street Sweeping Schedule
Appendix 54
Permitting Boards Meeting Dates & Calendar
Comprehensive Contact Information
Permitting Checklist
Glossary of Common Business Terms
Helpful Hint
The number of home-based businesses is growing throughout the Commonwealth. In
Salem, you must obtain a Special Permit from the Zoning Board of Appeals if you
are running a business out of your home that involves seeing any clients and/or the
public, displays signs, and/or has employees coming to your home to work. You will
also need to speak with the Building Inspector to determine handicap accessibility
requirements.
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INTRODUCTION
The City of Salem is committed to your success,
and we understand that the process of starting
or expanding your business is both exciting and
challenging. To make this process as
straightforward as possible, the Department of
Planning and Community Development (DPCD)
has created this guide to use as a reference.
Please reach out to us if you have any questions
along the way.
Throughout the guide, you will find answers to
frequently asked questions, descriptions of the
different processes that may be applicable, 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, as well as hyperlinks that will take you to relevant pages on the city’s website or to other
sections (listed below) within the guide itself.
Getting Started
− An overview of the guide and outline of top
considerations as you open, relocate, or
expand 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.
− City of Salem Contacts provides each of the
various departments and boards you may
need to speak with 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 may need to connect with
when opening or operating your business.
− Additional Considerations provides answers to other questions you may have
regarding permits and licenses.
Financial Resources
− Provides an overview of different local, state, and federal resources available to
you for financial assistance.
Photo by Creative Collective
Photo by Linda J. Orlomoski
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Technical Resources
− Provides an overview of different local, state, and federal resources available to
you for technical assistance.
How to be a Good Business Neighbor
− Provides tips for making your business an asset to your neighborhood.
Appendix
− A collection of helpful resources, including a comprehensive listing of city
department contacts and local, state, and federal agencies mentioned throughout;
a permitting checklist; and a glossary of commonly used business terms.
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GETTING STARTED
Opening a new business or expanding an already established business can be difficult. The City of
Salem is dedicated 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 Principal Planner in the Department of Planning and
Community Development (DPCD) at 978-619-5685.
To get started, here are a few specific things every business owner should consider:
Zoning – Consult the City Zoning Ordinances specifically section 3.0: Use Regulations
to make sure that your business meets the zoning requirements for the location. You
may need a Special Permit or Variance from the Zoning Board of Appeals. For more
information, see page 35.
Business Certificate – Any person conducting a business in the City of Salem, under
any title other than the complete real name of the owner, whether individually or as a
partnership, or any corporation doing business in a name other than the corporate
name, must file a business certificate with the Salem City Clerk. For more information,
see page 20.
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 Massachusetts
Secretary of the Commonwealth. For more information, see page 38.
Signage – If your business needs a sign, you will need to apply for a Sign Permit.
Depending on where your business is located, you may also need to work with the
through DPCD to obtain approval from one of the City’s review boards (Downtown
Urban Renewal Area, Historical 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 pages 32 and 33.
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 39.
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 37.
Financial and Technical Assistance – The City of Salem collaborates with several
agencies committed to providing quality technical assistance to Salem businesses. In
addition, the City of Salem, through the DPCD, offers direct loan and grant assistance
to qualified businesses. For more information, see page 43.
Building Permit – If you will be undertaking any construction, you will likely require a
building permit. For more information, see page 16.
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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,
identifying your potential customers and your competition, developing pricing, creating a marketing plan, and
projecting your revenues and expenses for three years.
• 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.
• Financing institutions and programs will often require a business plan before considering loaning money to
your business.
3. Have industry experience.
• If you have experience working in the business or 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.
4. You need to really know and understand your target clientele; your business should meet their needs.
• Research your market, be able to describe them in detail, and understand their desires.
• Conduct customer surveys before you open. To find out what your potential customers will want, you should
conduct initial surveys. For example: how much they are willing to pay, what they prefer to buy, how they
prefer to buy it, what they want from you, your store or service. How will your business stand out from the
competition?
5. Figure out how to meet your personal financial obligations for six months to a year - because it takes at least that
long to grow a successful business.
• Most businesses do not thrive for a few years—it will take time to create your 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 better positioned to last ten or more.
Be patient and be prepared.
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, if not, what you
need to do to repair your credit.
7. Hire professionals to support you.
• Gather a good team of professionals such as an accountant, a lawyer, a bookkeeper, and 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 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 must pay, etc. It is not an ordinary 9 to 5 job, but a thrill ride with its
true highs and lows.
Adapted and edited from Salem Harbor Community Development Corporation, Advancing Community Business (ACB) seminar
“10 Things You Should Know Before Starting a Business”
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Licensing and Permitting
Starting a business requires many different
licenses and permits. Navigating through the
permitting process can be overwhelming. On
the following pages, you will find a series of
questions to ask yourself to determine which
city departments, boards, and commissions
from whom you will need to seek approval.
Most licenses and certificates have an
associated fee. Consult the permitting checklist in the Appendix or click on the blue hyperlinks
through the guide for further details on fees.
Many applications are available online. Please use the following link to access certain
applications. Salem Online Permitting Portal
LICENSING AND PERMIT STEPS
Step One: Basic Licensing
When starting our Salem business, you should first consider if you will need any certificates or
licenses. You many need to visit the following 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.
YES NO NOT
SURE*
Are you planning to become a public guide?
Does your business involve fortune telling?
Front page of Salem's online permitting portal
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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?
Are you planning to become a public guide?
Does your business involve fortune telling?
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.
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.
YES NO NOT
SURE*
Does your business involve a vehicle(s) for hire?
If you answered “yes” to this use, you require approval from the Police Department Traffic Unit
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.
YES NO NOT
SURE*
Does your business involve limousine and/or taxi service?
If you answered “yes” to these questions you require approval from the Police Department Traffic
Unit, 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,” to any of the questions you should consult with the City Clerk to
determine if you will need to obtain a license for these items. Please click here for additional
information.
Doing Business in Salem Guide
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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 involves the cooking, serving or
preparation of food (common victualer)?
Is your business a hotel, inn, lodging house, or bed and
breakfast?
Does your business provide services as an auto dealer?
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 (i.e.
arcades, automatic amusement, etc.)?
Is your business providing services as a seasonal or Halloween
vendor?
Will your business have outdoor seating?
If you answered “yes” to any of these questions you need to obtain a License from the Licensing
Board 978-619-5631 or visit Licensing. 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.
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Step Two: Permitting
Your project may need further review by the city departments, review boards, or commissions
found on the following pages. Make this determination prior to submitting building permit
applications to the Inspectional Services Department.
Board of Health
YES NO NOT
SURE
Is your business a food establishment or does it 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. If you answered “not sure” to any of these questions, you should consult with the Health
Department to determine whether you will need to obtain a permit for these items. The Health
Department can be reached at 978-619-5654. Please click here for more information.
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Conservation Commission
YES NO NOT
SURE
Is your project going to conduct any construction or
alteration 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 any of these questions, you need to submit a Request to Determine
Applicability. The Conservation Agent is 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 click here for more information.
Historical Commission
YES NO NOT
SURE
Is your business going to erect, demolish, reconstruct, or
alter any exterior architectural feature (color, material,
design, or outward appearance) of any building or
structure within one of Salem’s four local historic districts or
require new signage? Click here for the map Local Historic
Districts.
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. If you answered “no”,
but the work may involve in kind rehabilitation or maintenance, you may need a Certificate of
Non-Applicability. The staff for the Historical Commission is 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 Historical Commission at 978-619-5685. Please click here for
more information.
NOTE: No other City department, office or board can review or issue a permit for your business
until you have received approval from the Historical Commission.
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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 construction of a new building of
more than 2,000 sq. ft. in an Entrance Corridor? See the
map of Entrance Corridors
Will your project include work on, or new construction of, a
building with 6 or more 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 the map of the NRCC . If you answered
“yes” to this question, you will also need review by the Design
Review Board as part of the Planning Board process. Please
click here for more information.
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 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
wetlands or a 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. Planning Board
applications can be found here Planning Board applications.
If you answered “not sure” to these questions, you should consult the Planning Board staff to
determine whether your project needs the approval of the Planning Board. Please click here 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.
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Salem Redevelopment Authority/Design Review Board
YES NO NOT
SURE
Will your project include alterations to the exterior of any
building or land located within the Urban Renewal Area,
including painting the exterior façade, installing exterior
lighting, window boxes, signs, and awnings? See the map
of the Downtown Renewal Area.
If you answered “yes” to either question, you need approval from the Salem Redevelopment
Authority (SRA) and their Design Review Board (DRB). The staff for the SRA and DRB is in the
Department of Planning and Community Development at 978-619-5685, applications can be
found here SRA applications. If you answered “not sure” to this question, you should consult the staff
for the SRA and DRB. Please click here for more information.
Sign Permits
YES NO NOT
SURE
Will you be installing a sign or awning with text that will be visible
from the public way?
If you answered “yes”, please answer the following questions. Visit Sign Permits for more
information. Contact the Department of Planning and Community Development at 978-619-5685
with questions.
Is your business located in a Local Historic District? See map of Local
Historic Districts
Is your business located in the Downtown Renewal Area? See map
Downtown Renewal Area
Is your business located in an Entrance Corridor? See map ECOD
Is your business located in the North River Canal Corridor? See map
NRCC
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, Design Review Board, or
the Salem Historical Commission.
All signs require a permit before being installed, see the application here. The staff in the DPCD
can assist you in determining how much signage you are allowed based on the location of your
business and the size of your storefront. Please click here for more information on sign permits.
You may find the Sign Ordinance Worksheet of use. Please consult the Commercial Design
Guidelines Manual for further guidance on sign design. If you are in the Downtown Renewal Area,
consult the SRA sign manual or additional requirements.
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Weights and Measures
YES NO NOT
SURE
Will your business include the use of weights, scales, and measuring
machines including, but not limited to: airport refuelers, cord wood
measures, gas station dispensers, industrial scales, marina pumps,
medical scales, oil truck meters, retail store scales, store scanner
scales, taxicab meters or vehicle scales?
If you answered “yes” to this question, you need approval from the Sealer of Weights and
Measures. Please click here for more information.
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 or visit Inspectional Services Permits.
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” to be permissible. If you do not meet all
the requirements of the Zoning Ordinance, you may be able to obtain a “variance.” Please visit
ZBA applications. Please click here for more information.
Helpful Hint
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 1:00 am. 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’s hours of operation.
Contact the Licensing Department for more information.
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Step 3: Building Permits
Finally, you should determine, via the following questions, whether your project will require a
Building Permit from the City’s Building Department:
YES NO NOT
SURE
Does your project involve the construction, alteration, repair,
or demolition a structure?
If you answered “yes” to this question, you probably need to obtain a Permit from the Inspectional
Services Department. You will need to answer the next four questions to determine if 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 at 978-619-5642 to determine whether you will need to obtain
a building permit for your project.
YES NO NOT
SURE
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 would retain more than 4 feet of fill?
YES NO NOT
SURE
Does your project include any of the following:
• Cutting away of any wall, partition, or portion
thereof
• Addition, alterations, replacement or relocation of
any standpipe, water supply, mechanical system,
fire protection, energy conservation; or
• 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.
• Other work affecting that could affect public
health or safety?
Will your project change the use of or any space within a
building?
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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.
Helpful Hint
At the beginning of your project, whether it includes major renovation or minor
changes, speak with a Building Inspector to ask if you need to complete an
Architectural Code Review. This review must be completed by a registered architect
who will use plans and drawings to determine if your project meets all relevant
codes and regulations. Not all projects will trigger this requirement, but it’s best to
ask up front so you can plan accordingly.
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Step Four: Miscellaneous Permits/Information
The following “what if” questions will help you to determine if you need any additional permits
and where to go to get those permits.
See Additional Considerations on page 40 for further information.
What do I do if I need a curb cut?
What do I do if I need 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
• Gas/Oil Burner Installation
• Swimming Pool Wiring Permit
• Gasoline Pump Permit
• Temporary, Renewed, or New Service Installation Permit
• Service Chanel Change Permit
• HVAC Installation without Building Permit
• Electric Sign or Siding Permit
The City of Salem Electrical Department can be found at 44 Lafayette Street, 978-745-6300.
Curb cuts can only be applied for and implemented by a qualified drainlayer. The
drainlayer must fill out an Application with the Engineering Department. Any curb cut more
than 32-feet in width requires City Council approval.
Requirements for drainlayers can be found here: Requirements.
Please contact the Engineering Department with questions. City Engineer 978-619-5673.
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What do I do if my business involves the use of public waterways or public piers?
What do I do if I am engaging in commercial fishing?
What do I do if I will be carrying passengers on the water?
Helpful Hint
Salem’s population is comprised of a variety of people who have a variety of
abilities. 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 (ADA) and to help you support customers with
different abilities. For more information, contact the ADA Coordinator at 978-619-
5630.
Any recreational or commercial use in Salem’s waters needs a Mooring Permit from the
Harbormaster. A permit is also needed from the Harbormaster for any business that will use a
public pier or will require a mooring or launch service.
The Harbormaster can be found at 51 Winter Island Road in Salem; 978-741-0098.
Businesses that include the operation of commercial fishing require approval from the
Massachusetts Department of Fish and Game, Division of Marine Fisheries
The Division of Marine Fisheries is located at 251 Causeway Street, Suite 400, Boston, MA
02114; 617-626-1520.
Businesses that involve the carrying of passengers on the water will require approval from the
US Coast Guard Marine Safety Division
The US Coast Guard Marine Safety Division is located at 408 Atlantic Ave, #5, Boston, MA
02110; 617-223-8600.
City of Salem Contacts
Detailed contact information for each City Department needed to successfully start your business
in Salem follows. Included in this information are specifics on licensing available by department,
board, and/or commission.
All information is up to date as of Spring 2023.
Office of the City Clerk
93 Washington Street, Room 3
Salem, MA 01970
978-619-6611
Ilene Simons, City Clerk, isimons@salem.com
https://www.salemma.gov/city-clerk-elections
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 permitting
checklist in the index for a list of fees.
How do I register my business with the City?
If the title of your business differs from your name or the corporate name, you need a
Business Certificate or a d/b/a (Doing Business As) from the City Clerk.
How do I apply for any licenses from the City Clerk’s Office?
Unless otherwise noted, all applications are returned to the City Clerk’s Office, 93
Washington Street, room 3. Please see the Licensing and Permitting Checklist in the
Appendix for applicable fees.
Some applications require a Criminal Offender Record Information (CORI)
acknowledgement form.
Application or License Type Where to Find It
Business Certificate
Auctioneer License* – requires sign-off from
the Police Department
City Clerk's Office Applications and
Forms
Drainlayers* Drainlayers Application
Junk Dealers and Collectors* – expires on
December 31 of each year. Junk Dealers and Collectors.
Second-Hand Clothing and Valuables* –
expires on December 31 of each year. Second-Hand Clothing and Second-
Hand Valuables
Harvest Seaworms* – expires on December 31
of each year. Seaworms
Public Guide Public Guide
* Must be renewed annually.
Doing Business in Salem Guide
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Salem Police Department Licensing and Services
Division
95 Margin Street
978-744-0171
Officer Roberson Troncoso, rtroncoso@salempd.net
https://www.salemma.gov/salem-police-department/licensing-
services
Vehicles for Hire - Applications for Vehicles For Hire (taxis, limousines, trolleys, pedicabs,
etc.) can be found here: Vehicle for Hire licenses. You can also obtain an application at
the Records Department Window in the lobby of the Police Station during regular
business hours.
Vehicle for Hire licenses expire on December 31 each year and must be renewed per
annum.
Check with the following departments during your application process.
City Clerk – The completed form must be turned into the City Clerk’s Office at 93
Washington Street, Room 3 with a $20 non-refundable application fee.
Collectors Office – Any outstanding parking violations, excise taxes, real estate
liens, etc. must be vacated at the Collectors Office at 93 Washington Street, Room
4 before the application can proceed.
Salem Police Department – Bring the completed form and a recent 2-inch by 2-
inch photo to the Salem Police Department at 95 Margin Street on any Monday
from 6 pm to 9 pm only. You will be interviewed by the Traffic Officer and, if
your application is approved, you will be issued a Temporary Operator’s License.
The application is then sent to the City Council for final approval. If approved, the Traffic
Officer will contact you to issue the Vehicle for Hire operator’s license.
Helpful Hint
No Vehicle for Hire licenses are issued during the month of November. Plan
accordingly.
Doing Business in Salem Guide
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Conservation Commission
98 Washington Street, 2nd Floor
Salem, MA 01970
978-619-5685
Kate Kennedy, Conservation Agent, kkennedy@salem.com
https://www.salemma.gov/conservation-commission
The Conservation Commission is responsible for protecting
Salem’s coast 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 projects and activities that
may impact wetlands or bodies of water. The Conservation
Commission also works to preserve open spaces and wildlife
habitats as well as investigate reported construction violations
and the destruction of wetlands.
Conservation Commission review is required when the project will alter (including any construction),
dredge, fill or remove land within 100' of a resource area. If your business will be going into an
existing storefront or building, it is unlikely that this will trigger Conservation Commission review.
Helpful Hint
If you need financing to start or expand your business, you may need to determine if the
property your business is located in is in a flood zone, thus requiring flood insurance. View
Flood Maps here: Flood Maps.
Fire Prevention
29 Fort Avenue, Salem, MA 01970
978-745-7777
Peter Schaublin, Fire Marshall, pschaeublin@salem.com
https://www.salemma.gov/fire-department/pages/fire-prevention-permits-
inspections
Fire Prevention is responsible for several permits, inspections and signature authorities for Certificates
of Inspection and Occupancy including:
Smoke & CO Alarm Inspection for the Transfer
of Real Estate
Pre-Demolition Permit
Underground Storage Tank Removal
Doing Business in Salem
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Service Station/Repair Garage Permitting
Fire Alarm System Shut Down Permit
Sprinkler/Suppression System Shut Down
Permit
Form 1 (Oil Burner Installation, Above Ground
Storage Tank Install or Removal)
Flammable/Combustible Materials Permit
Hot Works Permit
Explosive, Fireworks, Model Rocketry, Cannon
Mortar, Storage of Ammunition and Arms
Truss Construction Panel
Life Safety Plan Review (Sprinkler/Fire
Alarm/Hood Suppression/etc.)
21E Site Assessment Archive Request
Fire Prevention permit applications can be found here: Fire Prevention Permits.
Business owners are encouraged to consult with Fire Prevention early and often during the process of
opening or expanding your business.
Some permits and inspections are Annual Renewables and must be renewed every year. Other permits
and inspections are issued once per project and do not require renewal. Please see the Permitting
Checklist in the Appendix for details.
Health Department
98 Washington Street, 3rd Floor, Salem, MA 01970
978-619-5654
David Greenbaum, Health Agent, dgreenbaum@salem.com
https://www.salemma.gov/health
The Salem Health Department delivers public health services to residents, businesses, and visitors to
benefit the culturally diverse population of the City of Salem. As part of their role, the Health
Department is responsible for enforcing the state rule and regulations regarding various business
establishments to preserve public health. The Health Department can help you determine what permits
are required for your type of business.
Health Department permit applications can be found here: Health Department Permits.
Examples of permitting required through the Health Department include:
Burial or Removal of Deceased
Body Art Establishment
Body Art Practitioner
Catering
Plan Reviews (New Business & New Retail
Owner
Retail Food
Suntan Establishments
Doing Business in Salem
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Day Camps
Disposal Work Installers
Exterior Paint Removal/Abrasive Blasting
Food Service Establishments
Frozen Desserts
Mobile Food
Offensive Substances Transportation
Swimming Pool (public or semi-public)
Temporary Food
Title V (Septic System) Review
Tobacco Vendors
Well Application
Title V (Septic System) Review
Health Department – Food Permitting
The process for food permitting is two-fold: Plan Review and Food
Establishment Permit Inspection.
Part 1: Plan Review (Plan Review Application)
1. Schedule a meeting with Health Agent to discuss proposal and requirements for
licensure.
2. Schedule a site visit. The site visit allows the applicant to describe their plans for
the location and the Board of Health to provide information on work required to
ensure the facility meets compliance for licensure. Because the Public Health
codes change, facility upgrades may be necessary even if you are going to
conduct a similar type of business as previously existed at the location.
3. Submit Plan Review Application Submittal – Plans must be submitted 30 days
prior to the start of construction, and shall include:
a. Application Form
b. Professionally drawn plans that must show:
i. Site plan and floor plan
ii. Elevation and wall/floor joint details
iii. Lighting, plumbing/drainage details
iv. Lighting schedule and surface finish schedule
c. Specification sheets for all equipment and surfaces
d. Menu
e. Application Fee
Part 2: Food Establishment Permit Inspection (Food Establishment Permit Application)
To ensure that your food establishment is inspected and permitted to meet your projected
opening date, please contact the Health Department one week prior to your proposed opening
date to schedule an inspection.*
You must have the following documents in-hand in order to schedule the inspection:
a. Food Establishment Permit (Click Here)
Doing Business in Salem
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b. Certified Food Manager Certificate (for establishments that sell anything other
than prepackaged food)
c. Allergen Awareness Certificate
d. Workers’ Compensation Insurance Affidavit
e. Pest Control Contract
f. Trash Disposal Contract
g. Grease Disposal Contract
h. Choke Save Training Certificate (if establishment has 25 or more seats)
i. Lab Results (if you prepare frozen desserts)
j. Variance Requests with supporting documentation
* The food establishment permit inspection should be scheduled after other departments
(except the Building Department) have completed their inspections.
Once the inspection is completed and the facility has met the requirements for their Food
Establishment Permit, the inspector will sign the building card for the occupancy permit. They will
also advise the Licensing Department that they have completed their inspection so they can issue
the Common Victualler permit (if needed). After the Building Department has issued the
Certificate of Occupancy, the Food Establishment Permit will be issued, at which time you may
begin operating.
Health Department – Sick Employees
If you or one of your employees is sick with a communicable disease that
may be passed to another, please contact the Public Health Nurse at
978-619-5654.
Historical Commission
98 Washington Street, 2nd Floor, Salem, MA 01970978-619-5685
Patti Kelleher, Preservation Planner, pkelleher@salem.com
https://www.salemma.gov/historical-commission
The Salem Historical Commission, whose staff is 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 in the City.
Historic Chestnut Street, photo by Jim McAllister
Doing Business in Salem
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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 or call the Department of Planning and Community
Development to speak with the Preservation Planner.
As a business owner, you are required to obtain Historical Commission approval for work
proposed to the exterior of the building that is located in a Local Historic District, including, but
not limited to signage, roofing, siding, decks, mechanical
equipment, handicapped accessibility, fences, storefronts,
windows, and doors.
The application you are likely to need is a Certificate of
Appropriateness, which is issued for any exterior alterations
(including partial or full demolition and including new
construction). Alterations include changes in color, material,
design, location, and outward appearance of structures.
See application here: Application.
All Commission meetings are open to the public. The
Commission must decide 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 on appropriate signage and exterior
alterations?
The Salem Historical Commission Guidelines are an excellent resource. 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.
Helpful Hint
The Department of Planning and Community Development has Commercial Design
Guidelines to help smooth the process through many of the permitting boards and
commissions.
Doing Business in Salem
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Inspectional Services Department
98 Washington Street, 2nd Floor
Salem, MA 01970
978-619-5642
Stavroula Orfanos, Acting Building Commissioner, sorfanos@salem.com
https://www.salemma.gov/inspectional-services-building-department-public-property
The Inspectional Services (Building & Public Property) Department is responsible for building and
zoning issues, conducting inspections, enforcement actions on construction projects, and maintaining
public properties in its charge. In addition to taking appointments, the Building Commissioner and
Inspectors hold the following office hours:
Monday-Wednesday: 8 am– 9:30 am and 12 noon–1 pm
Thursday: 8 am– 9:30 am, 12 noon–1 pm, and 5 pm–7 pm
Fridays from 8 am-9 am
Zoning Enforcement – The Zoning Enforcement Officer ensures compliance throughout the City with
the numerous Zoning Regulations and Ordinances, as well as the interpretation and explanation of the
same to the members of the community. The Zoning Officer is also tasked with determining the
allowable uses for the City’s properties based on the Zoning Ordinance and Building Code.
Building Office – Comprised of the Building Commissioner, two Assistant Building Inspectors, a
Plumbing and Gas Inspector, a Weights and Measure Inspector, as well as two Clerks, the Building
Office takes in all Building, Plumbing, and Gas Permit Applications, reviews all plans and application
packages, and issues the Granting or Denial of these applications for a permit. The Building Office
also conducts all required inspections pertaining to the same, and where applicable, the granting of
Certificates of Inspection and/or Certificates of Occupancy.
Public Properties - responsible for City Hall and City Hall Annex as well as properties acquired through
enforcement actions, such as tax seizures, abandoned properties, or structures deemed unsafe by
accident or neglect.
Building Code – A legal document that protects public health and welfare by reducing potential
construction hazards and costs, providing construction standards, and contributing to community well-
being. The Massachusetts Building Code can be found here: Building Code.
Building Permit - issued to the person or entity responsible for supervising critical aspects of construction
(i.e. architect, engineer, contractor) who is licensed for work on commercial properties.
Doing Business in Salem
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Helpful Hint
If the licensed supervisor designated on the permit application leaves the project before
completion, construction 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?
• One-story detached accessory building used as a tool/storage shed, playhouse or similar
use if the floor does not exceed 120 sq-ft.
• Fences, 6-feet tall or less
• Retaining walls that are not a threat to public safety, health, or welfare and retain less than
4 feet of unbalanced fill (subject to review by a Building official).
• Ordinary repairs as defined by the Massachusetts Building Code. These do not include
removing any wall, partition, or a portion thereof, removal or cutting of any beam, column
or other load-bearing support, removal or change of any required means of egress, or
rearrangement of parts of a structure affecting egress requirements. Also not included are
additions to, alterations of, or replacement/relocation of any standpipe, water supply,
mechanical system, fire protection system, energy conservation system or other work
affecting public health or general safety.
Visit Inspectional Services Permits for the list of building permits available.
Helpful Hint
After the Building Permit work is complete, you must request the final inspection and, if
appropriate, receive a Certificate of Occupancy from the Building Department. Whether
you are opening a new business or renovating your current space, a Certificate of
Occupancy is required from the Building Department to occupy a building.
Doing Business in Salem
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Licensing Board
93 Washington Street, 2nd Floor, Room 8, Salem, MA 01970
978-745-9595 x41504
Melissa Ramos Mojica, Clerk of the Board, mpagliaro@salem.com
https://www.salemma.gov/licensing
The Licensing Board is responsible for the licensing and regulation of businesses and events. The
Licensing Board Clerk can best answer questions about licenses offered.
What do I need a license for?
The Licensing Board provides licenses for the following commercial uses:
Auto dealer Lodging House, Hotel, Inn, or Bed and
Breakfast Establishments
Automatic Amusement Street Performer
Common Victuallers (i.e., 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
Fortunetelling (both individual and
storefront)
What is the process for obtaining a license through the Licensing Board?
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 your complete application packet, with all
the necessary sign offs from city departments and the required fee. As the
applicant, you are responsible for the costs of advertising in the local paper and
any required notices.
Applications for licenses can be found here: License Applications
3. Public Hearing. A public hearing will be scheduled within approximately 10
days of the submittal of a complete application packet. You, or your
Doing Business in Salem
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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.
Liquor Licenses
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 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.
Helpful Hint
There is a possibility that a license may not be issued. The most common reasons why a
liquor license applicant is denied at the state level are:
• If taxes are owed to the Commonwealth.
• The manager is not a citizen.
• The directors are not citizens.
• The City’s quota of liquor licenses is full.
• Incomplete forms are submitted and/or fees were not paid.
• 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?
Doing Business in Salem
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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 apply online for an Extension of
Premise for Outdoor Retail here.
Helpful Hint
Did you know that an Entertainment License is needed if you plan to play a radio in your
restaurant and certain other businesses? Click here to find the application:
Amusement/Entertainment License Application
Planning Board
98 Washington Street, 2nd Floor, Salem, MA 01970
978-619-5685
Amanda Chiancola, Deputy Director of Planning, achiancola@salem.com
https://www.salemma.gov/planning-board
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 Developments, 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. All
Planning Board applications can be found here: Planning Board Applications.
Brix, Image provided by City of Salem
Doing Business in Salem
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As a business owner, you are not likely to need Planning Board review unless you need to construct or
redevelop a property on which to locate your business. If your business will be going into an existing
storefront or building, it is unlikely that you will need a permit from the Planning Board.
Planning and Community Development
98 Washington Street, 2nd Floor, Salem, MA 01970
978-619-5685
https://www.salemma.gov/planning-and-community-development
The Department of Planning and Community Development (DPCD) is
responsible for a wide range of activities and duties, 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, Port Authority, Harbor Plan Implementation Committee, Artist’s Row, Old Town Hall,
Salem Redevelopment Authority, and Design Review Board. As DPCD staffs several boards that might
affect your project, you should refer to 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.
Sign Permits
Please see the City of Salem Sign Ordinance for guidance in your application process.
Sign Permit Applications are reviewed through DPCD, and the permit is issued through
Inspectional Services. The process for obtaining a permit varies slightly depending on
where you are in the city (i.e. entrance corridor, historic district, downtown, etc.). Your
first steps are to contact DPCD, determine if your sign permit application will need
additional approval from another board or commission (SRA/DRB/Historical
Commission) and view the Sign Permit Worksheet and Sign Permit FAQ.
The Design Guidelines manual can provide further guidance. The SRA has its own
guidelines for signs in the Urban Renewal Areas, see the Sign Manual here: SRA Sign
Manual.
All permanent signs that can be viewed from the public way require a sign permit.
This includes vinyl graphics applied to windows that are 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, all window signage, including temporary window
signs may cover a maximum of 20% of the window glass.
After DPCD signs off on the application, it will be forwarded to the Inspectional
Services Department. The Inspectional Services Director will verify that it meets the Sign Ordinance and
the Zoning Ordinance. If all requirements are met, the Inspectional Services Department will issue you a
sign permit. You must have a sign permit in hand to install your sign.
Artists' Row, Photo by City of Salem
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It can take up to 3 months to obtain a sign permit depending on the location and how complete your
application is upon submittal. Talk to DPCD early in your business planning process to ensure your sign
is installed in time for your opening.
Helpful Hint
Want to open a storefront, but aren’t exactly sure of the viability of your concept? Check out
the City’s Artists’ Row incubator space. Artists’ Row contains a restaurant, and public restrooms,
as well as four arts “stalls”. As a seasonal program, managed by the City, artists and artisans
are invited through a Request for Proposal process to utilize the stalls as an opportunity to
build their audience and/or business while engaging with residents and Salem visitors. For
more information on Artists’ Row and tenant selection, contact Julie Barry, Senior Planner for
Arts and Culture at jbarry@salem.com or 978-619-5685.
Salem Redevelopment Authority (SRA)
Design Review Board (DRB)
98 Washington Street, 2nd Floor, Salem, MA 01970
978-619-5685
Kate Newhall-Smith, Principal Planner, knewhallsmith@salem.com
https://www.salemma.gov/salem-redevelopment-authority
https://www.salemma.gov/design-review-board
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.
When do I need SRA approval?
Check the map to see if your business property falls within
the downtown renewal area: Downtown Renewal Area.
The SRA requires that all changes to the exterior of a
structure and any changes to signage on properties
located within the Urban Renewal Areas undergo design
review. The SRA utilizes their Downtown Renewal Plan in
the design review. The Design Guidelines are intended to
supplement the design frameworks established by the
Urban Renewal Plan and the SRA staff are available to
help you as you put together your application. For
buildings that are older than 50 years, the SRA and the
DRB will consult with the SHC Guidelines for design
guidance.
Historic Superior Court located in the Urban
Renewal Area, photo by Aaron Usher
Doing Business in Salem
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The SRA has several permit applications:
Small Project Review
Projects that involve minor repairs or renovations, are considered “Small Projects”. SRA staff
can help you determine if your project falls under this review. A checklist of submittal
requirements for Small Projects Review is available on the SRA web page.
Sign Permits in the Urban Renewal Area
All signs proposed for the Urban Renewal Areas are required to undergo review by the DRB
with a sign-off by the SRA’s Executive Director prior to Building Department review and
issuance of a sign permit for installation. Please see the SRA Sign Manual for details on how to
successfully get a sign permit through the SRA and DRB.
A-Frame signs also require permitting. See the SRA’s Guidelines for A-frame signs
Helpful Hint
Applicants should note that it may take up to 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.
Outdoor Dining Permits
The outdoor dining permit process may take up to 2-3 months for approval. The review takes
the following steps:
1. The applicant will have to present the application to the SRA. This initial review is to
determine if the outdoor dining area can fit in the space proposed and will not
impede on 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 dining area including
the design of the tables and 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.
Please contact the Principal Economic Development Planner in the Department of Planning and
Community Development with inquiries.
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Weights and Measures
98 Washington Street, 2nd Floor, Salem, MA 01970
978-619-5619
John Doyle, Sealer of Weights and Measures, jdoyle@salem.com
https://www.salemma.gov/weights-measures
Weights and Measures enforces the law pertaining to weighing and measuring devices to protect the
interests of both buyers and sellers. 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.
The Sealer of Weights and Measures follows state standards to inspect large and small scales, meters,
scanning equipment (such as those used in grocery stores), as well as gasoline stations, to name a few.
For more information, please refer to the Weights and Measures webpage on the city website.
Zoning Board of Appeals (ZBA)
98 Washington Street, 2nd Floor, Salem, MA 01970
978-619-5642/978-619-5685
Stavroula Orfanos, Acting Zoning Enforcement Officer,
sorfanos@salem.com
Dan Laroe, Staff Planner, dlaroe@salem.com
https://www.salemma.gov/zoning-board-appeals
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. Check out Salem’s Zoning
Ordinance before applying: Zoning Ordinance.
As a business owner, you are not likely to need Zoning Board review unless you need to construct or
redevelop a property on which to locate your business (including building expansions) or if your
business is going into a building on a property that is not zoned to allow for your business. If you have
a question about whether your business is allowed to operate on a specific property or neighborhood,
consult the Zoning Enforcement Officer at 978-619-5642.
Board of Appeals
Doing Business in Salem
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Helpful Hint
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, they 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. ZBA application.
The ZBA cannot change the zoning or the allowed use of a property. Only the City Council
has the authority to rezone a property.
Doing Business in Salem
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State and Federal Contacts
The following list contains contact information for state and federal agencies that you may need to
successfully start your business in Salem. All information is current as of Spring 2023.
Massachusetts Alcoholic Beverages Control Commission (ABCC)
95 4th Street, Suite 3, Chelsea, MA 02150
617-727-3040
https://www.mass.gov/orgs/alcoholic-beverages-control-commission
The ABCC is an agency under the Massachusetts State Treasury. The objective of
ABBC is to provide uniform control over the sale, transportation, possession,
purchasing, and manufacturing of alcoholic beverages in the state. They work with
companies in the alcoholic beverage industry and municipal licensing authorities to
provide licenses, enforce legislation and regulations, and resolve license issues.
Massachusetts Department of Environmental Protection (MassDEP)
205B Lowell Street, Wilmington, MA 01887
978-694-3200
https://www.mass.gov/orgs/massachusetts-department-of-environmental-protection
MassDEP 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 Street, 7th floor, Boston, MA 02114
617-626-2600
https://www.mass.gov/orgs/massachusetts-department-of-revenue
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 page of references for your Employer Tax
Obligations, which provides specific information on a variety of state tax issues. DOR also offers Small
Business Workshops designed modules on their website to walk you through the tax issues.
Doing Business in Salem
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Massachusetts Division of Marine Fisheries
251 Causeway Street, Suite 400, Boston, MA 01970
617-626-1500
https://www.mass.gov/orgs/division-of-marine-fisheries
The Division of Marine Fisheries manages the state’s
commercial and recreational saltwater fisheries, and
overseas other services that support the marine
environment and fishing communities. If you will operate
a commercial fishing business, you should contact the Division of Marine Fisheries.
Massachusetts Division of Occupational Licensure
1000 Washington Street, Suite 700, Boston, MA 02118
617-701-8600
Division of Occupational Licensure
The Division of Occupational Licensure (DOL), through its boards and offices, licenses and
regulates more than 580,000 individuals, businesses, and schools to engage in over 150
trades and professions in Massachusetts.
Massachusetts Office of Consumer Affairs and Business Regulation
501 Boylston Street, Suite 5100, Boston, MA 02118
617-973-8787
https://www.mass.gov/orgs/office-of-consumer-affairs-and-business-regulation
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 jurisdiction.
Massachusetts Secretary or the Commonwealth, Corporations Division
1 Ashburton Place, 17th Floor, Boston, MA 02108
617-727-9640
https://www.sec.state.ma.us/divisions/corporations/corporations.htm
The Corporations Division is responsible for filings related to all for profit and nonprofit
corporations organized in Massachusetts as well as those out-of-state corporations
doing business in Massachusetts that have registered with the division.
Salem's harbor, photo by AECOM and Crowley
Doing Business in Salem
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United States Army Corps of Engineers, New England
696 Virginia Road, Concord, MA 01742
978-318-8580
http://www.nae.usace.army.mil/
The Corps has authority over construction or placement of structures, dredging, and dredged material
disposal in the waters of the United States for any project in or affecting the waters of the U.S. These
projects 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 Avenue, #5, Boston, MA 02110
617-223-8600
https://www.atlanticarea.uscg.mil/Our-Organization/District-1/
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 Guard for approval.
United States Internal Revenue Service (IRS)
JFK Federal Building, 15 Sudbury Street, Boston, MA 02203
844-545-5640
https://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
https://www.irs.gov/businesses/small-businesses-self-employed/starting-a-business. The following IRS
tax publications may be useful:
• Sole proprietor: #334 “Tax Guide for Small Business”
• Partnership: #541 “Partnerships”
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Additional Considerations
This section identifies the extraneous things sometimes forgotten when setting up a business. All
information is current as of Spring 2023.
Tax Identification Numbers
For a federal tax identification number, please use the following link to fill out the
form and have your EIN emailed to you IRS EIN application.
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, contracted through the City
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
98 Washington Street, 2nd Floor; 978-619-5673
Rayleen McGrath, rmcgrath@salem.com
https://www.salemma.gov/recycling-and-trash
Water and Sewer
Department of Public Services
5 Jefferson Avenue; 978-744-3302
Brooke Coleman, bcoleman@salem.com
https://www.salemma.gov/public-services
The Department of Public Services will connect water or sewer to your business for a
fee.
Property Taxes
If you need information regarding the assessment of your property, you should contact the City’s
Assessor’s Office.
Assessor’s Office
93 Washington Street; 978-619-5608
Gloria Felix, gfelix@salem.com
https://www.salemma.gov/assessors
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Tax Collection
If you need information regarding collection of your taxes, you should contact the
Collector’s Office.
Collector’s Office
93 Washington St., Room 4; 978-619-5621
Bonnie Celi, bceli@salem.com
https://www.salemma.gov/collectors-office
Transportation for Profit
For Businesses that are Tow Companies and Household Movers
Massachusetts Department of Public Utilities, Transportation Oversight Division
1 South Station, 5th Floor, Boston, MA 02110
617-305-3500
https://www.mass.gov/orgs/transportation-oversight-division
For Taxi businesses:
Taxi service to Logan Airport require additional permitting through Massport
Salem Police Department Licensing and Services Division
95 Margin Street
978-744-0171
rtroncoso@salempd.net
https://www.salemma.gov/salem-police-department/licensing-services
Massport
Manager of Ground Transportation
1 Harborside Dr., Suite 200S, E. Boston, MA 02128
617-428-2800
https://www.massport.com/massport/business/forms-procedures/
Bidding on Municipal Contracts
Purchasing Department
93 Washington Street, 3rd Floor
978-619-5695
Anthony Delaney, adelaney@salem.com
https://www.salemma.gov/purchasing
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.
Please note that if you are contracted for a project that is funded with federal funds,
you will need to obtain a Unique Entity ID (UEI). This can take 3 months or more to obtain. Start at
www.sam.gov .
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Electrical Service
National Grid
1-800-322-3223
https://www.nationalgridus.com/MA-Business
You should contact National Grid 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.
Gas Service
National Grid
1-800-233-5325
https://www.nationalgridus.com/ma-gas-business
You should contact National Grid 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.
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Financial and Technical Assistance
This section identifies funding and technical assistance opportunities for both new and existing business
owners.
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
The City of Salem, through the Department of Planning and Community Development
(DPCD), provides support to business owners by providing financial resources 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.
You can also find more information at the city’s business support website: www.salemforbusiness.com.
Small Business Loan Program
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 cover 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 in eligible districts. 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 $2,500 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.
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For information on these programs, contact Kate Newhall-Smith at 978-619-5695 or
knewhallsmith@salem.com
Destination Salem
245 Derby Street
800-725-3662 or 978-741-3252
https://www.salem.org
As the official destination marketing organization for the City of Salem,
Destination Salem cooperatively markets Salem as one of Massachusetts’ best
destinations for families, couples, domestic and international travelers who are
seeking an authentic New England experience, cultural enrichment, American
history, fine dining, unique shopping, and fun. Destination Salem’s marketing
initiatives focus on the following markets: Leisure Travelers, Regional Visitors,
Group Tours, LGBTQ Visitors, International Travelers, and Cruise Passengers. The organization
strategically places destination advertising and organizes cooperative advertising to reach audiences
in these markets.
The organization is a nonprofit, public-private partnership funded by both the City of Salem and the
businesses that invest in advertising in the annual Salem City Guide & Map and the annual Guide to
Haunted Happenings.
Enterprise Center
121 Loring Avenue
978-542-7528
https://enterprisectr.org/
The Enterprise Center at Salem State University 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. The Center 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 University.
Specifically, the Enterprise Center offers:
• 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.
• 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.
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MassHire Northshore Workforce Board
70 Washington Street, Suite 314
978-741-3805
https://masshire-northshorewb.com/
The North Shore Workforce Board (NSWB) is composed of
knowledgeable and influential business and community leaders who
are appointed by the Mayor of Salem on behalf of the nineteen
communities that make up the North Shore region.
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
North Shore Alliance for Economic Development
121 Loring Avenue
978-744-4430
https://northshorealliance.org
The North Shore Alliance for Economic Development serves as a regional convener
and catalyst to make things happen. It brings regional leaders from 30
communities together to explore and take action on economic development issues
that can help grow the region, including those that advance the Commonwealth as
a whole. The Alliance provides small business technical assistance and offers
educational programs including Small Business Clinics. The Alliance has shared resource and policy
information from federal, state, and local governments and other private sources to assist businesses
and policy makers alike.
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North Shore Community Development Coalition (NSCDC)
96 Lafayette Street
978-745-8071
http://northshorecdc.org/
The North Shore CDC is a non-profit agency that offers training and technical assistance
to both start-up and existing small businesses through its Small Business Technical
Assistance Program. The Small Business Technical Assistance Program provides free one-
on-one consulting and technical assistance services, with a focus on immigrant, women,
and minority-owned businesses. They offer technical assistance in marketing, financial
analysis, customer analysis, digitization, funding resources, time management, and much more. These
services also include industry-specific workshops, trainings, and focus groups.
Incubator Retail Space
The Incubator Space (104 Lafayette Street, Salem) is intended to help e-commerce businesses
and start-ups to test out physical retail space by providing a free, short-term lease. The
business receives support from the small business team on marketing, product placement,
financial management, technology, and more.
Additional Services
• One-on-One Consultation
• Business & Services Planning
• Marketing Support & Planning
• Technology Assessment
• Financial Analysis
• Customer Analysis
• E-commerce to Physical Space Assessment
• Testing the feasibility of a new business or direction
• Assistance with applying for loans, grants, special financial assistance programs
• Small Business Spotlight
• Industry Specific Workshops, Focus Groups & Community Outreach
• Resources for employees
Salem Chamber of Commerce
265 Essex Street, Suite 101
978-744-0004
http://www.salem-chamber.org/
The Salem Chamber of Commerce is a voice for member businesses, representing,
advocating, and working to enhance the business and civic environment. With over 500
members, the Chamber is Salem’s largest business organization. The Chamber offers
several networking opportunities and sponsors events that promote the business
community in Salem.
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Salem Main Streets
265 Essex Street, Suite 101
978-744-0004, ext. 15
http://salemmainstreets.org/
The Salem 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 in getting off the ground and staying informed.
Resources Outside of Salem
Center for Women and Enterprise (CWE)
44 School Street, Suite 200
Boston, MA 02108
617-536-0700
https://www.cweonline.org/About-CWE/CWE-Eastern-Massachusetts
CWE is an inclusive economic empowerment organization focused on helping women
business owners, and aspiring women entrepreneurs launch and grow their business by
providing greater access to the resources, tools and support they need.
If your business is 51% women owned, managed, and controlled, you could qualify
for the Women’s Business Enterprise National Council (WBENC), which will give you
access to a world of corporate contracts. To fuel success for women-owned businesses, WBENC offers
multiple programs and opportunities designed to support business development and growth, from pitch
competitions to executive education programs.
Commonwealth Corporation
2 Oliver Street, 5th Floor
Boston, MA 02109
617-727-8158
https://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
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E For All
614 Washington Street
Lynn, MA
833-336-7255 x7203
https://eforall.org
Entrepreneurship for All (EforAll) is accelerating economic and social impact in
communities nationwide through inclusive entrepreneurship. The organization offers
both intensive business training through immersive courses and mentorship as well
as opportunities to participate in pitch contests, attend virtual webinars, and offers neighborhood co-
working spaces.
Massachusetts Alliance for Economic Development (MAED)
101 Walnut Street
Watertown, MA 02472
617-924-4600
http://www.massecon.com/
MAED, a statewide non-profit alliance of private and public sector partners, champions
Massachusetts as the best place to start, grow or locate a business. MAED provides an
array of services to help your company grow including Site Finder, Information
Resource, Massachusetts Ambassadors, and Industrial and Research Park Directory.
Some of the Resources offered by MAED are location services, case studies, economic research, and
Ready Mass 100.
MassDevelopment, North Office
370 Merrimack Street, Suite 130
Lawrence, MA 01843
978-459-6100
https://www.massdevelopment.com/who-we-are/regional-teams/north
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. Whether you are a manufacturer, nonprofit, small
business, or real estate developer, MassDevelopment can structure a financing
package that suits your needs. 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.
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The Massachusetts Office of Business Development
136 Blackstone Street, 5th Floor
Boston, MA 02109
617-973-8600
https://www.mass.gov/orgs/massachusetts-office-of-business-development
The Massachusetts Office of Business Development assists businesses relocating to
Massachusetts as well as businesses willing to expand their current operations with
specific attention being paid to jobs created, jobs retained, and capital invested.
Mill Cities Community Investments (MCCI)
50 Island Street, Entry B, Suite 103
Lawrence, MA 01840
978-258-2772
https://mccinvest.org
MCCI’s mission is to grow the assets and wealth of historically disinvested individuals
and their communities by providing a combination of robust advice, resourced
networks, and capital in the Merrimack Valley and across Massachusetts. MICCI is a
Community Development Financial Institution, known as CDFI. Staff will work with
individuals to help them reach their financial goals by offering fair and affordable
loans for their home or business.
The Salem Small Business Loan Fund
The Salem Small Business Loan Fund offers small businesses loans to Salem based existing
and start-up businesses that cannot currently access financing from a traditional bank or
credit union lender. To qualify, businesses must demonstrate:
• The business owner(s) are 18 years of age or older
• The business is in Salem
• The community would benefit from the business project
• 20% investment into the business by the business owner
• Willingness and capability to repay the loan
• Business industries not applicable; Cannabis, Adult Entertainment, Firearms,
Pyramid based, Real Estate/Stock speculation
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North Shore Latino Business Association Inc.
33 Sutton Street
Lynn, MA 01901
781-596-8300
https://mynslba.com/
The North Shore Latino Business Association is the premiere small business organization
in Boston’s North Shore helping Latino and business owners and entrepreneurs grow. It
is a relationship-driving business networking organization with a goal of mutual support
to all. The organization advocates for small business owners in front of City and State
officials to help resolve conflicts, assist in compliance with regulations, and provide
access to legal and business resources.
Service Corps of Retired Executives (SCORE), Northeast Massachusetts
Peoples United Bank
181 Elliott Street
100L Cummings Center
Beverly, MA 01915
https://nemassachusetts.score.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. Local chapters provide free consulting and low-cost
workshops in their communities. Both working and retired executives and business
owners donate their time and expertise as business counselors.
Supplier Diversity Office
One Ashburton Place, Suite 1017A
Boston, MA 02108
617-502-8843
https://www.mass.gov/orgs/supplier-diversity-office-sdo
The SDO’s mission is to promote diversity, equity, and inclusion in state
contracting for businesses owned by minorities, women, Portuguese, veterans,
service-disabled veterans, those with a disability and LGBTQIA individuals, as
well a small Massachusetts businesses. The SDO certifies these businesses and
manages several programs that help them enhance their marketability when
bidding on public contracts.
United States Small Business Administration (SBA), Massachusetts
10 Causeway Street, Room 265
Boston, MA 02222
617-565-5590
https://www.sba.gov
The SBA is a cabinet level federal agency. Since its founding in 1953, the
SBA has helped small business owners and entrepreneurs pursue the
American dream. As the SBA has grown and evolved, their mission remains
Doing Business in Salem
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the same – to help Americans start, build, and grow businesses. The SBA offers a variety of loan
programs, an investor search tool, disaster assistance programs, offers surety bonds, and grant
programs. The organization assists businesses navigating contracting with the Federal government, and
technical assistance.
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How to be a Good Business Neighbor
Whether your business is an established entity that has a loyal clientele, or you are newly opened, it is
important to consider what effect your business will have on your neighbors. Here are a few key
elements to being a good business neighbor.
Ribbon Cutting
What better way to let your neighbors and the
community know you are here! Ribbon cuttings are
scheduled through the Chamber of Commerce and
provide great publicity. Ribbon cuttings can happen
anytime during your first six months of opening or after
a grand re-opening and are usually attended by
members of the Chamber of Commerce, local elected
officials, and others that may have helped you on your
journey to opening your business. To schedule your
Ribbon Cutting, email info@salem-chamber.org.
Plastic Bag Ban
If you are a retail business, it is important to know that Salem has had a single use plastic bag ban
since 2018. Please reference the FAQ, the City Plastic Bag Ordinance or call the Trash and Recycling
Department with any questions.
Polystyrene (‘Styrofoam’) Ban
In recognition of the damaging effects of polystyrene packaging on public health and the environment,
the City passed an ordinance prohibiting the use of foam polystyrene food and packaging containers
by food service establishments and retailers. As of September 4, 2023, restaurants will no longer be
allowed to use Styrofoam clamshell packaging for takeout orders or Styrofoam plates and cups for
food service. Grocers may not use Styrofoam trays for packaging meats or produce. Retailers of all
sizes may not stock and/or sell Styrofoam packaging such as plates or cups. Please reference the FAQ,
the Sustainable Food Containers and Packaging Ordinance, or contact Janelle Rolke at
jrolke@salem.com.
Shoveling
Sidewalk clearing after a storm is important for your customers and neighbors. Snow must be removed
from your sidewalks within six hours of snow stopping or by noon the next day if in the middle of the
night. There are fines for not complying. Snow blowing, shoveling, or throwing snow back in the street
when clearing is prohibited and subject to fines.
For more details, please see the city Snow Brochure
Solid Waste and Recycling
Trash removal will keep your business clean and your neighbors happy. There are two options for trash
and recycling pickup, municipal or private. If you choose to use the city’s trash
and recycling pickup, you will be charged $30.00 per month. If your business is
new and not in a location previously receiving municipal trash pickup, you will
need to hire private trash removal.
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Street Sweeping Schedule
Street sweeping is important for not only making your business and the surrounding community look
great, but regular street sweeping promotes the health, safety, and preservation of the entire city.
Street sweeping can prevent the presence of hazardous materials near your business, as well as homes
and schools in the area. It helps keep our drains clear for better stormwater management and keeps
trace metals and other hazardous materials from entering storm drains. Click here to see Salem’s most
current Street Sweeping Schedule.
Prohibition on Discharges to Public Sewers
Section 46-193 details the prohibition on discharging wastes and waters to any public sewers.
No person shall discharge, or cause to be discharged any of the following to any public sewers:
1. Any gasoline, benzene, naphtha, fuel oil, or other flammable or explosive liquid, solid, or gas.
2. Any waters or wastes containing toxic or poisonous soils, liquids, or gasses in sufficient quantity
either singly or by interaction with other wastes, to injure or to interfere with any sewage
treatment process, constitute a hazard to humans or animals, create a public nuisance or create
any hazard in the receiving waters of the sewage treatment plant.
3. Any waters or wastes having a PH lower than 5.5 or having any other corrosive property
capable of causing damage or hazard to structures, equipment and personnel of the sewage
works.
4. Solid or viscous substances in quantities or of such size capable of causing obstruction to the
flow in sewers, or other interference with the proper operation of the sewage works such as
but not limited to ashes, cinders, sand, mud, straw, shavings, metal, glass, rags, feathers, tar,
plastics, wood, unground garbage, whole blood, paunch manure, hair and fleshings, entrails,
and paper dishes, cups, milk containers, etc., either whole or ground by garbage grinders.
Permitted Work Hours
Construction work may occur between 8am and 5pm Mondays through Saturdays.
Blasting and/or chipping is prohibited on Saturdays.
All construction work is prohibited on Sundays.
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APPENDIX
The following additional information can help you on your way to starting or maintaining your business.
Boards and Commissions Schedule
The table below shows the monthly schedule of board and commission meetings that
you may need to appear before starting your business. Please check the calendar
section on the City website to confirm as the schedule is subject to change. Use the
individual links in the table to see application deadlines.
Month Monday Tuesday Wednesday Thursday
Week
1
Historical
Commission
(6pm)
Planning Board
(6:30pm)
Week
2
Licensing Board
(6 PM)
Board of Health
(7pm)
SRA
(6pm)
Week
3
Conservation
Commission
(6:30pm)
Historical
Commission
(6pm)
ZBA
(6:30pm)
Planning Board
(6:30pm)
Week
4
Licensing Board
(6 PM)
DRB
(6pm)
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.
City of Salem and Local Agencies
Assessor’s Office
93 Washington Street, Salem, MA
01970
978-619-5608
gfelix@salem.com
City Clerk’s Office
93 Washington Street, Room 2,
Salem, MA 01970
978-619-5611
isimons@salem.com
Harbormaster
51 Winter Island Road, Salem, MA 01970
978-741-0098
bmchugh@salem.com
Health, Board of
98 Washington Street, 3rd Floor, Salem, MA 01970
978-619-5654
dgreenbaum@salem.com
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City Council (City Clerk’s office)
93 Washington Street, Salem, MA
01970
978-745-9595
Collector’s Office
93 Washington Street, Room 4,
Salem, MA 01970
978-619-5621
bceli@salem.com
Conservation Commission
98 Washington Street, 2nd Floor,
Salem, MA 01970
978-619-5685
kkennedy@salem.com
Electrical Office
44 Lafayette Street, 2nd Floor,
Salem, MA 01970
978-745-6300
jgiardi@salem.com
Enterprise Center
121 Loring Avenue, Salem, MA
01970
978-542-7528
lswanson@enterprisectr.org
Fire Prevention
29 Fort Avenue, Salem, MA 01970
978-745-7777
pschaueblin@salem.com
Salem Redevelopment
Authority/Design Review Board
98 Washington Street, 2nd Floor,
Salem, MA 01970
978-619-5685
knewhallsmith@salem.com
Salem Chamber of Commerce
265 Essex Street, Suite 101,
Salem, MA 01970
978-744-0004
info@salem-chamber.org
Historical Commission
98 Washington Street, 2nd Floor, Salem, MA 01970
978-619-5685
pkelleher@salem.com
Inspectional Services and Public Property
98 Washington Street, 2nd Floor, Salem, MA 01970
978-619-5642
sorfanos@salem.com
Licensing Board
93 Washington Street, 2nd Floor, Salem, MA 01970
978-745-9595, ext. 41504
mpagliaro@salem.com
Planning Board
98 Washington Street, 2nd Floor,
Salem, MA 01970
978-619-5685
achiancola@salem.com
Planning and Community Development, Dept. of
98 Washington Street, 2nd Floor, Salem, MA 01970
978-619-5685
Police Department
95 Margin Street, Salem, MA 01970
978-744-0171
Public Works, Department of
5 Jefferson Avenue, Salem, MA 01970
978-744-3302
bcoleman@salem.com
Purchasing Department
93 Washington Street, 3rd Floor, Salem, MA 01970
978-619-5695
adelaney@salem.com
Service Corps of Retired Executives (SCORE)
Peoples United Bank
181 Eliot Street
100L Cummings Center, Beverly, MA 01915
Zoning Board of Appeals (ZBA)
98 Washington Street, Salem, MA 01970
978-619-5685
sorfanos@salem.com
dlaroe@salem.com
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Salem Main Streets
265 Essex Street, Salem, MA
1970
978-744-0004
kylie@salemmainstreets.org
State Agencies
Alcohol Beverage Control Commission (ABCC)
95 4th Street, Chelsea, MA 02150
978-727-3040
Department of Environmental Protection
205B Lowell Street, Wilmington, MA 01887
978-694-3200
Department of Revenue
100 Cambridge Street, 7th floor, Boston, MA
02114
617-626-2600
Division of Employment and Training
70 Washington Street, Salem, MA 01970
978-825-7200
Division of Marine Fisheries
251 Causeway Street, Suite 400, Boston, MA
02114
617-626-1500
Division of Occupation Licensure
1000 Washington Street, Suite 700, Boston, MA
02118
617-701-8600
Office of Business Development
136 Blackstone Street, 5th Floor, Boston, MA
02109
617-973-8600
Office of Consumer Affairs & Business
Regulation
501 Boylston Street, Suite 5100, Boston, MA
02118
617-973-8787
Massport
1 Harborside Drive, Suite 200S, E. Boston, MA
02128
617-428-2800
Public Utilities, Transportation Oversight
Division
1 South Station, 5th Floor, Boston, MA 02110
617-305-3500
Secretary of the Commonwealth Citizens
Information Service
One Ashburton Place, McCormack Bldg.
Boston, MA 02108
617-727-7030
Secretary of the Commonwealth
Corporations Division
One Ashburton Place, 17th floor, Boston, MA
02108
617-727-6940
Salem State Small Business Development
Center
121 Loring Avenue, Suite 310, Salem, MA
01970
978-542-6643
Supplier Diversity Office
One Ashburton Place, Suite 1017A, Boston,
MA 01970
617-502-8843
Federal
Federal Trade Commission, Northeast Office
National Museum of the American Indian
1 Bowling Green, #318, New York, NY
10004
212-607-2829
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Internal Revenue Service
JFK Bldg, 15 Sudbury Street, Boston, MA
02203
844-545-5640
Small Business Administration,
Massachusetts
10 Causeway Street, #265, Boston, MA
02222
United States Army Corps of Engineers, New
England
696 Virginia Road, Concord, MA 01742
978-318-8580
United States Coast Guard Prevention Division
408 Atlantic Avenue, #5, Boston, MA 02110
617-223-8600
Private Non-Local
Center for Women and Enterprise
24 School Street, Suite 200, Boston, MA
02108
617-536-0700
Massachusetts Alliance for Economic
Development
101 Walnut Street, Watertown, MA 02472
617-924-4600
MassDevelopment
370 Merrimack Street, Suite 130, Lawrence,
MA 01843
978-459-6100
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Permitting Checklist
REQUIRED OBTAINED FEE
Building Department
Building Permit Variable
Certificate of Inspection (110 Form) $60
Certificate of Inspection (304 Form) $100
Gas Permit Variable
Plumbing Permit Variable
Street/Sidewalk Dumpster Permit $25
Tent Permit Variable
City Clerk/Police Department
Auctioneer Variable
Billiard/Pool – 1st table/each additional
table $30/$15
Bowling Alley – 1st alley/each additional
alley $30/$15
Business Certificate $25
Fortunetelling, Palmistry, Card Reading
License $25
Fortunetelling, Individual License $50
Fortunetelling Store License $50
Fortunetelling Fair License – M-Th $25/day
Fortunetelling Fair License – F, Sat, Sun, &
Federal Holidays $50/day
Fortunetelling Fair Employee/Vendor $50
Junk Collector License $50
Junk Dealer License $100
Pawnbroker License $100
Public Guide – application fee/CORI fee $10/$25
Shellfish and Seaworms License $10
Second-hand Clothing License $50
Second-hand Valuables License $100
Transient Photographer License $50
Vehicles for Hire (taxi operators, limousines,
taxi cabs, pedicabs, horse-drawn carriages,
trolleys, etc.)
Variable
Other: _____________________________ Variable
Fire Prevention
21E Site Assessment Archive Request $50/Location
Explosives, Fireworks, Model Rocketry,
Cannon Mortar, Storage of Ammunition and
Arms $50
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Fire Alarm System Shut Down Permit $50
Flammable & Combustible Materials Permit $50
Form 1 (Oil burner Installation, Above
Ground Storage Tank Install or Removal $50
General Fire Permit $50
Hot Works Permit $50
Life Safety Plan Review
$50/less than
7500 sq ft;
$100/greater than
7500 sq ft
Pre-Demolition Permit $25
Service Station Permitting
$50/Annual
Flammable
Storage;
$50/Annual Hot
Works;
$50/Annual
Liquefied Propane
Storage;
$50/Annual Paint
Spray Booth;
$50/Service
Station/Repair
Garage
Smoke & CO Alarm Inspection for the
Transfer of Real Estate
$50/Condo/Single
Family; $100/2-
Family; $150/3-6
Units;
$500/greater than
6 units
Sprinkler/Suppression System Shut Down
Permit $50
Truss Construction Placard $25/Placard
Underground Storage Tank Removal $125
Off-Street Dumpster Permit (via Building
Department application $25
Health Department
Certificate of Fitness $50/unit
Burial or Removal of Deceased Permit $25
Body Art Establishment Permit $315
Body Art Practitioner Permit $135; $50/guest
artist
Camps (Recreation or Day) Permit $10
Catering Establishment Permit
$25/event;
$200/catering
kitchen
Food Services Establishments Permit $140 - $420
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Food Permit – Mobile $210 Food Permit – Retail $70 - $420
Food Permit - Temporary
$35/1-3 days;
$70/4-7 days;
$10/day for 7+
days
Frozen Desert Manufacturing Permit $25
Disposal Works $225/$180
Paint Removal (exterior) Permit $35
Swimming Pool (Public or Semi-Public Permit
$140/Seasonal;
$210/Annual;
$40/Nonprofit
Suntan Establishment Permit $140
Tobacco Vendors $135
Licensing Board
Auto dealer License $200
Automatic Amusement License $100;
$10/replacement
Common Victuallers License $50
Entertainment License $100
Liquor License Variable
Lodging House License
$100/1st 4 rooms
+ $25 each
additional
Street Vendors, Hawkers, and Peddlers
License Variable
Street Performers License $20 for 2 years
Planning and Community
Development (DPCD) Conservation Commission $100-$2,000
Historical Commission No Fees
Planning Board Variable
Salem Redevelopment Authority No Fees
Zoning Board of Appeals $2-$250
Sign Permit $25; $10/$1000
spent
Financial/Technical Assistance (Program:
_________________________________)
1% closing fee
based on amount
of loan
Public Services Contract Operator License $50
Drainlayer License $100
Electrical Permit $3/$1000 + $15
Electric Sign or Siding Permit $30/sign
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Gas/Oil Burner Installation Permit $15/burner
Gasoline Pump Permit
$30 + $5/each
additional
HVAC Installation w/o Building Permit $35
Service Panel Change Permit $20
Swimming Pool Wiring Permit $30
Temporary, Renewed or New Service
Installation Permit Variable
Weights and Measures Variable
Massachusetts Department of
Revenue Sales and Use Tax Vendor Registration
Certificate upwards of $100
United States Internal Revenue
Service Employee Identification Number No Fee
Other: _____________________________
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GLOSSARY OF BANKING, BUSINESS, AND FINANCIAL TERMS
The following is a list of terms that business owners should know before creating a business plan, applying
for a loan, or operating a successful enterprise.
A B C D E F G H I J L M N O P Q R S T U V W Z
A (Back to glossary)
Accountant – a financial advisor who keeps, audits, and inspects the financial records or individuals or
businesses and prepares financial and tax returns
Accounting Period – A regular period, such as a quarter or year for which a financial state is produced.
Accounts Payable – Debts owed to creditors
Accounts Receivable – Debts owed to a business, usually from customers for goods or services purchased
from the business.
Accrued Interest – Interest earned but not yet credited to an account
Amortization – 1.) An accounting practice of gradually decreasing an asset’s book value, spreading its
depreciation over time. 2.) The gradual reduction of a department by making periodic principal
payments
Annual Percentage Rate (APR) – The cost of credit on an annual basis. APR is determined by multiplying
the periodic interest rate by the number of periods in a year in which it was applied.
Annual Percentage Yield (APY) - The percentage of interest you earn on investment each year.
Appreciation – An increase in the value of an asset.
Asset – Anything that has commercial or exchange value that is owned by a business or individual.
Asset-Based-Loan – Financing that provides credit secured though the company’s assets, like inventory,
accounts receivable, equipment, or property.
Assign – To transfer ownership of an assign to another party by signing a document.
Audit – Inspection and verification of financial accounts, record, and accounting procedures.
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Audit Trail – A detailed, chronological account of accounting records or another financial details to
enable the reconstruction and examination of a sequence of events.
Available Balance – The balance in an account that can be invested, disbursed, or wired out.
B (Back to glossary)
Balance Sheet – An overview of a company’s financial position at the given time, usually at the close of a
month. A balance sheet shows the state of affairs at one point in time.
Balance Reporting System – A report by a bank or financial institution that provides detailed account
activity and balances daily.
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) for a specific period of time.
Basis Point – A standard measure for interest rates and other percentages in finance. 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 are
profits.
Broker – Induvial 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 principles.
Bottom Line – The net profit or loss of a business.
C (Back to glossary)
Capital – All property of a business, including money, used to conduct a business.
Capital Expenditure – Purchase of long-term assets, especially equipment, used in manufacturing a
product.
Cash Flow– Incoming cash minus outgoing cash during a given period.
Cash Management – The process of collecting, handling, and using cash.
Character – The combination of qualities or features, especially moral or ethical strengths. Character is
an important consideration for lenders.
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Chief Executive Officer (CEO) – The person in the highest position of authority within an organization.
Chief Financial Officer (CFO) – The person who is in the highest position of financial authority within an
organization. The CFO typically handles funds, signs checks, keeps financial records, and does the
financial planning.
Closely Held Business – A business privately owned and run by a few individuals. If the individuals are
related, it is known as a Family Business.
Collateral – Property offered to secure a loan or other credit that is subject to seizure up 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 – In earned on a 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. It helps control payments and cash flow, so a
business can avoid overdrafts, manage investments, and pay down debt.
Corporation – A type 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 a loan.
Current Ratio – Calculation of current assets divided by current liabilities, measuring the ability of a
company to pay its current obligations from its 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.
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D (Back to glossary)
Debt 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, measurement the debt
level of the business (leverage)
Debenture – Debt secured by the creditor based on the general credit worthiness 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, 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 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 available for
residential purposes.
Disbursement – Payment made to satisfy a debt or other financial obligation.
Discount Rate – the rate of interest charged by the Federal Reserve on loans it makes to a 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.
Dividend – Distribution of earnings to shareholders.
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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 not 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 (like 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 alternatives to debt financing.
Escrow -Temporary deposit with a third party of assets, by agreement between two parties to a
contract. The money is released with the conditions of the contract have been met.
Expense Account – Account often used by salesperson or executives for travel and entertainment
expenses
Extraordinary Items – Unusual or nonrecurring event that must be explained to shareholders.
F (Back to glossary)
Factoring – A transaction between a business and a third-party (the factor) which provides quick cash
flow in exchange for accounts receivable and/or other assets. A business can use its invoices (accounts
receivable) as leverage or sell off accounts receivable to the factor to obtain cash.
FDIC (Federal Deposit Insurance Corporation) – A federal agency that guarantees (within limits) funds
on deposits in member banks. The FDIC also makes loans to or buys assets from member banks to
facilitate mergers in order to prevent bank 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 another 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) – An asset-management and valuation method in which assets produced or
acquired first are sold, used, or disposed of first. FIFO assumes that the remaining inventory consists of
items purchased last.
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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 then
delivered to the issuer’s bank for payment. During this period, this 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
basis for all published statements of conditions.
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 borrow cannot.
Guaranteed/Insured Loan – Programs in which the federal government arranges to indemnify a lender
against part or all of any defaults by those responsible for payments 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 – aka EIN or FIN – A number obtained by a business from the IRS by filing an
application from 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.
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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
owner, the shareholders. No shareholder of a corporation is personally liable for the debts, obligation 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 tor which
may occur
Inventory – Value of a business’s raw material, work in process, supplies used in operation 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 balance requirement, that have
not been invested or put to use.
Insolvency – The state of being unable to pay one’s debt obligations when they come 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 liability associated with the account.
L (Back to glossary)
Lease Financing – A specialized area of equipment finance whereby the owner or 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 induvial or corporation but 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 debt 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 – The legal right to hold property of another party or have it sold or applied for in payment of a
claim.
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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 assts of a business to pay off debts.
Local Development Corporation – A organization, usually made up of local citizens, designed to
improve the economy of an 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, reducing the collection float.
London Inter-Bank Offered Rates (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, option, commodities, or money market securities.
Marginal Costs - 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 unitions, lending units of major corporations, mortgage
companies, venture capitalists, development corporations, insurance companies, 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.
Note – An instrument that outlines the repayment terms of a loan.
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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 percentages 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 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 another.
Prime Rate – The interest rate banks charge to their most creditworthy customers. Also referred to as
Base Lending Rate (BLR)
Profit – What is left after taxes are paid.
Pro Forma – Financial statements prepared based on assumption of future events that will affect the
expected condition of the company.
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Q (Back to glossary)
Qualified Plan or Trust – An employer’s plan or trust for the benefit of their 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 government backing.
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 collateral 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. Sometimes referred to as Accounts Receivable and
listed as a current asset on the balance sheet.
Retained Earnings – Net profits that accumulate in a business after dividends are paid.
S (Back to glossary)
Seasonality – Changes in business, employment, or buying patterns, which occur predictably at certain
time 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.
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.
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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 the check that facilitate 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 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 bill 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.
Variance – A variance allows an exception to certain development standards such as setbacks, building
height, lot dimensions, and other zoning 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 a new or existing firm that exhibits
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 a 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 master account to cover the total amount of checks
drawn on the ZBA than arrived for payment that day. This returns the account to a zero balance.
Doing Business in Salem
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Corporations that want central cash control while allowing decentralized disbursing operations typically
use ZBAs
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 withing that zone such as
residential, commercial, or industrial. Typical zoning regulations address building height, bulk, lot area,
setbacks, parking, signage, and density.
** ZBA is also the abbreviation for the City of Salem’s Zoning Board of Appeals**