Shopify has launched its small business loan fund, Shopify Capital, in Canada.
As of Monday, Canadian merchants on Shopify’s platform will have access to Shopify Capital loans. This comes as the e-commerce company invested an additional $200 million into the fund to help small businesses affected by COVID-19.
“This funding will fill in the gaps that banks generally can’t satisfy right now.”
When it announced the $200 million, Shopify noted it was working with governments to make the funds available outside of the United States (US) as soon as possible.
“Canada holds a special place in our hearts at Shopify. It’s where we’ve established roots as a company and it’s where so many of us call home,” Shopify said in a statement. “Right now, many small businesses are struggling to survive in the new reality that confronts us all. That’s why, starting today, we’re introducing Shopify Capital in Canada to provide fast relief to cash-strapped businesses across the country.”
Launched in 2016, Shopify Capital was previously only available in the US. According to Shopify’s website, the loans are now available in the United Kingdom as well.
The capital fund was launched as a way to help Shopify merchants secure funding. In January, Shopify added a new product line to Shopify Capital, offering starter loans for Shopify Payment users from $200. Now, Shopify merchants are able to access loans ranging from $200 to $1 million. The loans are expected to be repaid through future sales.
Canadian merchants will have more limited access to the loan program, with the potential for loans between $200 to $500,000 CAD. Shopify noted that approvals will be provided within a few days after merchants go through an online application process.
“This funding will fill in the gaps that banks generally can’t satisfy right now and provide businesses with the cash flow they need, when they need it most – now, not months from now,” said Shopify.