Facebook Announces $40M In Grants For Small US Businesses Affected By Coronavirus

Facebook Inc. FB is dedicating $40 million to help small businesses across the United States weather the novel coronavirus pandemic.

Sandberg Says Businesses Were Hit Suddenly 

The $40 million in funding will be distributed among 10,000 small businesses in 34 locations, the social media company's Chief Operating Officer officer Sheryl Sandberg said in a statement Thursday.

The efforts are part of a $100 -million a small business grant program that Sandberg announced last month.

"The COVID-19 pandemic has hit small businesses everywhere," Sandberg said. "Suddenly and, through no fault of their own, many simply can't do business, and for others it has become much, much harder because customers are doing the right thing and staying at home."

Facebook said it will start accepting applications for the grants next week.

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Pandemic Smothers Business Activity 

The coronavirus has infected nearly 250,000 people across the U.S., according to data from Johns Hopkins University.

Widespread lockdowns imposed to curb the spread of the virus have generally forced businesses deemed non-essential to shut down. The demand for various products and services has also decreased, putting small businesses in significant financial strain and often unable to maintain their payroll.

The number of unemployment cases filed in the U.S. over the last few weeks has skyrocketed. The $2-trillion coronavirus stimulus package passed by the federal government includes $350 billion dedicated to small businesses.

Amazon.com Inc. AMZN had previously announced a $5-million fund to help small businesses around its office in Seattle.

FB Price Action

Facebook shares were down 3.96% at $151.93 at the time of publication Friday.