April 8, 2020—The Federal Reserve announced it will support the government's $349 billion small business lending program, per a report from Inc.
The Federal Reserve said it will buy loans that banks make to small businesses as part of the program. This helps create incentive for banks to engage in more lending. It will free up more cash for banks to spend, which otherwise would be required to hold some cash when making a loan in case of default.
The Federal Reserve is also expected to launch a program that would aid states and cities by buying municipal bonds.
To find out more about how small businesses can gain access to capital quickly, click here.
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