ROCHESTER, N.Y. — Small businesses drive the American economy — and in 2023, a record-breaking 5.5 million new businesses were launched, according to the U.S. Census Bureau. But for many new business owners, the biggest challenge isn't coming up with the idea, it's figuring out how to fund it.

Inside her studio, Halligan Creative Arts Therapy, every color carries meaning. Shannon Halligan helps clients heal through creativity — one piece of art at a time.

“Art therapy is based on psychotherapy,” said Halligan, a licensed art therapist. “It treats mental health concerns of all kinds and we have a specialization in utilizing art, as a tool to work with clients."


What You Need To Know

  • In 2023, a record 5 1/2 million small businesses were launched, but many new owners struggle with how to fund their ideas

  • Shannon Halligan grew her art therapy business with support and a microloan from PathStone, a local nonprofit that helps entrepreneurs denied by traditional banks

  • PathStone, using funds from the SBA, offers low-interest loans and educational support, helping local businesses grow and create jobs in the community

Her mission is rooted in healing, but building the business behind that mission took more than passion. It took education, support and guidance.

“PathStone has been wonderful. They have a long series where you learn how to either get a mortgage loan or get a business loan,” Halligan added.'

That support came from the Enterprise Center at PathStone, where Halligan accessed their microloan program. It’s designed to help entrepreneurs across upstate New York secure funding, even if they’re denied by traditional banks.

“I was hoping to grow staffing and to buy a building in the next five to eight years, but I was actually able to do it in one to two,” Halligan said.

“Startups, which we consider not having launched yet, up to 24 months, that is considered a startup business. So for startups, they are capped at $50,000. And then for existing businesses, which is anything 24 months operational plus, those can potentially go up to the $250,000 that we offer,” said Yahaira Zapata, deputy director for economic development at the Enterprise Center at PathStone.

The Small Business Administration allocates funding to community organizations like PathStone, which then distributes the money to entrepreneurs through its microloan program.

“It allows us to lend that out to the public — in this case, small business owners — with favorable rates. That in turn obviously helps the community because you see more small businesses popping up. And not only that, but those are also creating job opportunities for folks in the community,” Zapata added.

For Halligan, it’s not just about the money. It’s about the knowledge and structure that comes with it.

“A lot of times with business, you're kind of making goals and hoping for something, but you don't know how to get there. They will help you step by step, so that's been really valuable to me,” Halligan said.