We want to see small businesses succeed. That’s the feeling I am getting from the financial community in and around Salem based on my learning of The Salem Small Business Loan Fund program. It offers low interest small business loans to Salem-based existing and start-up businesses that cannot currently access financing from a traditional bank or credit union lender.
Salem Small Business Loan Fund Terms and Conditions:
- Loans are between $5,000 and $100,000
- Fixed interest rate of 7%
- 1 to 5-year terms
- 1% Closing fee
- No Application Fee
Mill Cities Community Investments (MCCI) created it in partnership with the Essex County Community Foundation, the City of Salem, Mass Growth Capital Corporation, and several banks including Eastern Bank, East Boston Savings Bank, Boston Private Bank, North Shore Bank, Berkshire Bank, and St. Jean’s Credit Union.
To Qualify for Salem Small Business Loan Fund:
- Business owners must be 18 years of age or older
- Business must be located in Salem (later to be expanded to other North Shore areas)
- The community would benefit from the business project
- 20% investment into the business by the business owner
- Willingness and capability to repay the loan
I asked Aaron Lackman, Commercial Services Manager at Mill Cities to explain further about “the community would benefit from the business project” requirement. Could simply selling food qualify?
“Actually selling food would very much count. As would a business that is hiring employees. It’s really to detract from certain kinds of businesses such as real estate speculation or day trading,” revealed Lackman.
I like that. Way too many small biz were ripped off during the recent federal Paycheck Protection Program (PPP) loan application process. A recent article in the Wall Street Journal indicated that “tens of thousands of companies” received PPP loans for which they appeared to be ineligible.
The more specific the requirements, the greater the chance funding gets into the hands of qualifying local merchants; they have been struggling far too long to survive in a COVID devastated economy.
About Mill Cities Community Investments
Mill Cities Community Investments provides flexible loan products to small businesses and developers of residential projects — as well as to low & moderate income persons and families. MCCI lends primarily throughout Essex and Middlesex Counties, with a particular focus on the mill cities of Lawrence, Lowell and Haverhill.
MCCI is certified by the US Treasury as a community development financial institution, holds Massachusetts Banking and Brokerage licenses and is a 501 c3. As of April of 2017, MCCI is a certified Community Development Corporation.
For more information or to apply in English please contact Aaron Lackman at (978) 258-2772 ext. 18 or at email@example.com
(Para más información o para postularse en espanol contacte Kristin Wallace at (978) 258-2772 ex. 16 o en Kristin.firstname.lastname@example.org)