Furman (2-3, 1-1) has won two-straight after starting the season 0-3.
Williams, a preseason 1st-team All-Southern Conference selection, returned a kickoff 100 yards on Furman's first possession, and then added touchdown runs of 89 and 2 yards to give the Paladins a 21-3 lead.
McCloud's 20-yard touchdown extended Furman's lead to 28-3 with 3:28 left in the first half. McCloud finished 123 yards while Williams, who racked up 239 on the ground, became the first Paladin since 2000 to rush for over 200 yards in a game.
It was also the first time since 2005 that Furman has had two players rush for over 100 yards in the same game.
Eddie Sullivan led Western Carolina (1-4, 0-3) with 220 yards passing and 104 rushing.