Appearing on CNBC’s “Mad Money” on Wednesday, Sandberg said the $20 million would come from the $100 million small business grant program that Facebook announced in March.
Of the total grant amount, $40 million is to be channeled to U.S. businesses, while half that amount will go to women, minorities, and veterans. The money will be disbursed “within a few weeks.”
Sandberg acknowledged, “We know when crises hit the most vulnerable get hit the hardest.”
Why It Matters
Sandberg’s announcement comes a day after Facebook launched Facebook Shops, a service that helps companies sell their products on both the social network and Instagram.
According to Aaron Goldman, CMO of 4C, a global insights company, Facebook Shops is the “right play at the right time,” considering it extends to Facebook, Instagram, WhatsApp and Messenger “to the tune of 3 billion monthly users.”
Facebook has partnered with Shopify Inc. (NYSE: SHOP) to support small businesses on the Shops platform, through the use of commerce tools.
Facebook Price Action
Facebook shares traded 0.80% higher at $231.80 in the after-hours session on Wednesday. The shares closed the regular session 6.04% higher at $229.97.