The Federal Reserve on Thursday announced $2.3 trillion in programs designed to finance small businesses and assist pinched governments.
The Fed said that loans would be geared toward businesses with under 10,000 employees and less than $2.5 billion in revenues for 2019. It also included the Payroll Protection Program and a $500 billion lending program for states and municipal finances.
"Our country's highest priority must be to address this public health crisis, providing care for the ill and limiting the further spread of the virus," Fed Chairman Jerome Powell said in a statement. "The Fed's role is to provide as much relief and stability as we can during this period of constrained economic activity, and our actions today will help ensure that the eventual recovery is as vigorous as possible."
The Fed also said it will expand three existing credit facilities that will increase credit to both households and businesses, putting $850 billion into the three facilities. The move will be backed by $85 billion from the Treasury.
The programs are designed to protect against the faltering economy which has been paralyzed by the coronavirus pandemic.