The Federal Reserve announced new measures against the effects of the coronavirus crisis to secure up to 2.3 trillion USD, including through the creation of support programs for small and medium-sized businesses, as well as for state and local governments.

“Our country’s top priority should be to tackle this public health crisis by providing care for the sick and limiting the spread of the virus”, said Fed Governor Jerome Powell.

“The Fed’s role is to provide as much relief and stability as possible during this period of limited economic activity, and our actions today will help ensure that the final recovery is as strong as possible”, says the text.

The announcement shows that up to 500 billion USD in lending through short-term direct debt repayment will be offered to municipalities through the liquidity facility.

Another program, the so-called Main Street Lending Facility, will provide loans to small and medium-sized businesses totaling up to 600 billion USD. The plan is also to include larger companies that previously had no access to financial aid. It will include companies with up to 10,000 employees or up to 2.5 billion USD in annual revenue. The loans will range from 1 million USD to 150 million USD.

It will also receive up to 850 billion USD in additional corporate lending.

The Fed also said it would continue to closely monitor the primary and secondary market conditions of municipal securities and evaluate whether additional measures were needed to support local authorities.