Hebron, Connecticut — Soaring construction costs are threatening to stall the expansion plans of small business owners across the country, and in Hebron, one award-winning bakery is turning to its community for help.

Michelle Nicholson, owner of The Flour Girl Bakery & Café, knows firsthand how difficult it has become to expand a small business in today’s volatile market. "This is not an easy time to be in a small business," she said.

Nicholson’s bakery began humbly — as a simple bread shelf outside her house. But its popularity quickly grew, eventually blossoming into a full-fledged café in the Hebron Historic District. Today, she leads a team of 35 and was recently named Connecticut’s 2025 Small Business Person of the Year.

Now, Nicholson is working to open a fourth building to accommodate her bakery’s continued growth — but rising prices and logistical setbacks have pushed the project nearly a year and a half behind schedule.

"It’s taken so much work, and we’re almost a year and a half behind schedule," she explained. "It’s been a huge change from where we started two years ago."

According to industry tracker Trading Economics, the cost of steel has jumped more than 8.7% since this time last year, and lumber prices have surged over 30%. These spikes, combined with equipment failures and construction delays, have placed unexpected financial pressure on the project.

“These costs can be more than what most small businesses can handle on their own,” Nicholson said.

Rather than halt expansion, Nicholson has embraced a grassroots solution. She launched an online crowdfunding campaign to raise $100,000 to offset the escalating costs. In return, donors are being offered a range of creative rewards — from helping invent a new sourdough flavor to participating in early-morning baking sessions. Higher-tier backers are being offered corporate sponsorship opportunities, such as catering credits and brand partnerships.

"So that we have the capital to build, without having to take on the loans," she explained.

As of August 6, the campaign has already raised $10,000, showing strong early momentum. This isn’t Nicholson’s first time rallying local support — a previous campaign for the bakery brought in just over $12,000.

"It's very emotional," she said. "It’s very special to see these people in this community, who have been supporting us all along, believe so heavily in what me and our team are working for. It validates the decisions we have been making for the last five years."

Nicholson’s story underscores the growing challenges that construction-related inflation is posing to small businesses — and the innovative ways entrepreneurs are responding. While federal data continues to show broad price increases across construction materials, it’s individual stories like Nicholson’s that highlight how those numbers translate to real-world impacts.

To learn more or contribute to the campaign, visit The Flour Girl Bakery’s official social media pages or stop by their main location in Hebron.

Originally reported by Steffen reals in Fox 61 News.