I grew up in an entrepreneurial family. I witnessed firsthand the hard work and passion my parents poured into the South Bradford Fruit Market every day.

I also remember the many small, family-owned businesses — like Colella’s Italian Bread and the Bradco milk man — that delivered to the market daily, each playing a vital role in our local economy.

Small businesses are the heart of rural communities, including ours. They create jobs, attract visitors, give back to the community and shape the distinct character of our communities. With the right financial support, small businesses and early-stage entrepreneurs can thrive, driving local economic growth.

The enduring spirit of entrepreneurship in our community is evident — over the past five years, the Bradford Area Alliance has received more than 185 applicants for the Harvey L. Golubock Business Competition (to compete for $20,000 to start or expand their business), a testament that our deep-rooted entrepreneurial heritage remains a part of our community DNA. Expanding access to capital ensures that new entrepreneurs and, thus, our rural communities can continue to thrive. By investing in small businesses, we support individual success, strengthen the foundation of our communities and pave the way for a more dynamic and resilient future.

The importance of access to capital cannot be overstated. A Kauffman Foundation study on access to capital found that 90%-95% of businesses that hire required financing to start their business. Rural communities can have fewer options.

Our community is fortunate to have strong and integral commercial banks. At the same time, commercial banks, in general, tend to be conservative when lending to startup businesses and have regulatory constraints limiting their risk. This creates a noticeable gap between the need for startup funding and the ability to access it. If access to capital is clearly an important part of a thriving entrepreneur ecosystem, what can we do to address the challenge?

If rural businesses face an uphill battle for initial funding, then innovative and community-driven solutions, like Honeycomb Credit, a crowdfunding investment platform, are essential. Honeycomb Credit allows people in our community to easily invest and lend money to small businesses, helping the business to launch or expand while offering a return to investors. Honeycomb Credit simplifies the investment process, allowing individuals to invest as little as $100. The platform handles all the details, including distributing returns to local investors.

Innovatively, 80% of an investor’s principal is safeguarded through a grant program funded by Halloran Philanthropies and administered by the North Central PA Regional Planning and Development Commission, providing stability in times of S&P 500 market volatility.

Julie Marasco, Bradford Regional Engagement Lead with the Halloran Trust, said, “The innovation of this solution originated with Brian Fernandes-Halloran. His innovative vision has created a way for our community to grow together — by keeping our investments local and offering competitive returns. This community capital ecosystem strengthens Bradford’s economy while empowering local businesses to succeed.”

There is still more work to be done in the effort to bring access to capital opportunities to rural entrepreneurs, but exciting progress is underway. Honeycomb Credit offers a fresh way for McKean County residents to fuel local business growth. Be on the lookout for future announcements regarding investment opportunities to support local businesses through Honeycomb Credit.

For more information, contact Christian Smith at Christian@bradfordareaalliance.com.

(Carolyn Boser Newhouse is executive director of the Bradford Area Alliance.)