Shopify Capital makes additional $200 million available to merchants affected by COVID-19

Shopify has added $200 million to Shopify Capital, its fund which supports its merchants with small loans, as a way to support small businesses affected by COVID-19.

Shopify Capital is currently only available to Shopify merchants in the United States, but the e-commerce giant noted that it is currently working with governments to make the funds available in more countries as soon as possible.

Shopify is currently working with governments to make the funds available in more countries.

The capital fund was launched by Shopify in 2016 as a way to help Shopify merchants secure funding. Shopify Capital offers starter loans to eligible Shopify Payments merchants, with initial loans of $200 in order to help merchants begin building their brand, adding inventory, or experimenting with marketing to grow their business.

Over the past three years, Shopify Capital reports that it has advanced more than $750 million in funding. It offers both loans and cash advances ranging from $200 to $1 million.

The additional $200 million in loans being made available through the program is in addition to other steps that Shopify is taking to support its customer base, which is made up mostly of small businesses. The company is making gift cards available for all plans and customers, as a way to free up cash flow in an attempt to reduce the impact of COVID-19.

Shopify has also had its team across Canada working to support its merchants, offering local delivery and pickup. In the coming weeks, Shopify plans to enable retailers using Shopify POS to offer in-store or sidewalk pick up for online retailers. It is unclear at this time how provincial restrictions on non-essential businesses will affect such measures.

The Ottawa-based company has also extended its typical 14-day free trial to 90 days and is offering weekly live webinars with programming designed to help businesses through uncertain times.

Meagan Simpson

Meagan Simpson

Meagan is the Associate Editor for BetaKit. A tech writer that is super proud to showcase the Canadian tech scene. Background in almost every type of journalism from sports to politics. Podcast and Harry Potter nerd, photographer and crazy cat lady.