Where can a small business find venture capital in today's economy?

Networking. Try to contact your local Chamber of Commerce. There are some companies out there that claim to match up investors with capital, but I can't vouch for any of them. However, I've heard some about Angel investors. I don't know if that's just a term or if it's an actual group. Google it.

*Edit* There is no government funding. You still need to go through a bank. All the SBA does is guarantee the bank will recoup the loan if you default, and it's pretty hard to be qualified for. Believe me, I've tried.

It's a hard thing to do in todays economy unless you can put up a little money yourself and offer a rock solid business plan/venture. Best way is to try and go through the SBA or government funding.

friends ? and family ? no bank is going to touch small firms,

there are websites set up that the Puplic can put up their money for loan of a % they picked, of course you would have to go thru a credit check,

http://uk.zopa.com/ZopaWeb/

im in the UK so my comments are based on here :)