Small Business Funding Guide: Fueling Your Next Big Idea

 
 

Starting or growing a small business takes more than passion and a great idea - it takes funding. Whether you're launching a new venture, expanding your services, or investing in equipment, understanding your funding options is key to long-term success.

At the Kricker Innovation Hub, we work with entrepreneurs every day who are navigating the complex world of small business finance. This guide is designed to help you explore the most common and often overlooked funding sources available to small business owners in our region and beyond.

1. Traditional Loans

Best for: Established businesses with strong credit and a clear business plan.

Banks and credit unions offer small business loans with competitive interest rates. These are ideal for businesses with a proven track record and collateral. Be prepared to provide financial statements, tax returns, and a detailed business plan.

Tip: Check out local lenders who understand the Appalachian market and may offer more flexible terms.

2. Microloans

Best for: Startups and early-stage businesses needing smaller amounts of capital.

Microloans (typically under $50,000) are offered by organizations such as our partners at the ECDI Women’s Business Center of Central Appalachia at SSU. These loans often come with technical assistance and are more accessible to entrepreneurs with limited credit history.

3. Grants

Best for: Mission-driven businesses, nonprofits, and innovation-focused startups.

Grants are non-repayable funds but they’re competitive. Look for:

  • Local economic development grants

  • State and federal programs (like SBA or USDA Rural Development)

  • Private foundations supporting entrepreneurship, especially in rural communities

Tip: Tailor your grant applications to show both economic and community impact.

4. Friends, Family & Community

Best for: Entrepreneurs with strong personal networks.

Early-stage funding often comes from those who believe in you. Be clear about expectations and consider formalizing the agreement with a promissory note or equity agreement.

5. Crowdfunding

Best for: Consumer-facing businesses with a compelling story or product.

Platforms like Kickstarter allow you to raise funds from the public in exchange for rewards or early access. Crowdfunding also doubles as a marketing tool to build your audience.

6. Angel Investors & Venture Capital

Best for: High-growth startups with scalable business models.

Angel investors and VCs provide capital in exchange for equity. While less common in rural areas, the Hub is fortunate to partner the Tri-State Angel Investment Group on potential investment.

7. Business Competitions & Accelerators

Best for: Entrepreneurs looking for funding and mentorship.

Programs like Ignite Portsmouth offer pitch competitions, mentorship, and access to funding. Many alumni have gone on to secure grants, loans, and investment thanks to the foundation built during the program.

Final Thoughts

There’s no one-size-fits-all approach to funding. The best strategy often combines multiple sources and starts with a clear understanding of your business model, financial needs, and growth goals.

Need help navigating your options? The Kricker Innovation Hub is here to support you with:

  • Business planning

  • Programming for new and existing business owners

  • Connections to local lenders and investors

The Hub is happy to partner with SSU Professor Marc Scott to offer our Fall Grant Writing Workshop Series: From Idea to Impact.

Join us for a hands-on, four-part workshop series designed to help aspiring and experienced grant writers sharpen their skills and increase their chances of success. Whether you're just getting started or refining a proposal, this series will guide you through the full grant writing process.

Learn more.

Kricker Innovation Hub