The Federal Reserve has announced a new program for small business support that allows commercial banks to transfer small business loans directly to the US central bank.

The Fed has said it will announce later this week details of the new so-called Workplace Safety Program. The job protection program is part of the institution’s response to the economic effects of the coronavirus pandemic.

The purpose of the program is to encourage banks to lend at low rates, with the understanding that they can transfer them to the central bank in order to receive cash and continue lending.

The Workplace Safety Program is one of the key measures adopted as part of a package of more than 2 trillion USD to offset the economic impact of the coronavirus crisis. It devotes 350 billion USD in loans so small businesses can continue to pay their employees and be able to cover their basic costs.

But some bankers said ways to tackle the potential risks of bad credit remain unclear, although the Treasury said they would provide guarantees.

The Fed is working on a separate lending tool that is expected to focus on employers with 500 to 10,000 employees.

Fed Governor Jerome Powell is expected to provide an updated outlook for the economy Thursday during a web conference hosted by the Brookings Institution, a Washington-based think tank.