Kevin M. Tierney, Sr., Chief Executive Officer of North Shore Bank recently announced that the bank has made a $100,000 commitment to the Salem Small Business Loan Fund. This $1 million loan fund is the result of government, non-profit, and for-profit entities working together to provide capital and technical assistance to Salem businesses during the COVID pandemic and beyond.
The Small Business Loan Fund will offer financing to existing and start-up businesses in Salem that cannot currently access financing from a traditional bank or credit union. Loans will range from $5,000 to $100,000, feature a fixed interest rate, and have terms of up to five years. There is a one percent closing fee for any credit recipients.
In addition to the loan opportunity, the program offers technical assistance to businesses seeking funding. Qualified community partners can assist business owners with the loan application, and, if a business is not ready to take on a loan, they can help with financial planning and forecasting. The technical assistance providers will be able to connect businesses to networks that can offer guidance and help the business advance to a point where accessing funding in the Loan Fund makes sense.
Salem’s Mayor, the Honorable Kimberly Driscoll, said of the program:
The Salem business community is resilient and has been navigating the economic upheaval caused by the COVID-19 pandemic. This program is another way the City, its partners, and local and regional financial institutions, including North Shore Bank, can support Salem businesses during the pandemic and beyond.” She continued, “The technical assistance piece is an integral part of the program, a unique offering that is not often associated with a loan program. Not only will businesses be able to seek the financial resources they need, but they will receive invaluable advice and support as they navigate the program and position their business for success.
To qualify for the Small Business Loan Fund, businesses owners must be 18 years old or older; the business must be located, or will be located, in Salem; the community must benefit from the business project; the owner must invest a minimum of 20% in the project and have a willingness and capability to repay the loan. Businesses not applicable for the fund included Cannabis, Adult Entertainment, Firearms, Pyramid Based, Real Estate/Stock Speculation.
Mr. Tierney stated:
As the economic impact of the COVID-19 pandemic continues, more small businesses in our community will be relying on financial assistance. North Shore Bank has been a part of Salem’s business community for many years, and we are pleased to be a part of this worthwhile program.” He added, “We applaud Mayor Driscoll, the City of Salem, and all of the organizations involved, for coming together to help the small businesses in our community during this unprecedented time.
This program is the result of a joint effort between the City of Salem, Mill Cities Community Investments, Essex County Community Foundation, the Salem Partnership, Eastern Bank and the Commonwealth of Massachusetts through Massachusetts Growth Capital Corporation in collaboration with technical assistance providers and local financial institutions.
Business owners that are interested in the Salem Small Business Loan Fund can learn more about it at http://mccinvest.org/salem/