Washington (AFP) – The Federal Reserve on Monday announced a program to help facilitate the government’s massive lending program for small businesses devastated by the coronavirus shutdowns.

It was yet another move by the central bank to use its monetary firepower to help cushion what is likely to be a devastating and sudden economic downturn as the death toll from COVID-19 mounts.

The Fed said it will essentially buy loans that banks make to small businesses under the Paycheck Protection Program launched Friday, but did not provide details.

The program offers a nearly government guaranteed $350 billion in financing through private lenders, which will be forgiven if businesses ranging from shops to restaurants use the funds largely to pay their workers.

The program, part of the $2.2 trillion rescue package approved in late March, was rushed out by the Treasury and the Small Business Administration, and banks complained that they did not receive detailed guidance on how to manage the process.

White House economic advisor Larry Kudlow said Monday there were 130,000 loans totalling $38 billion from 2,400 lenders.

But questions about the program have cropped up on everything from bank money laundering rules to how fast loans could be issued from lenders not previously part of the SBA programs.

On top of that were nitty-gritty details about forms and documentation.

Some businesses that applied for the financing said their applications were added to the pile, but with no word on how long they would wait.

“To facilitate lending to small businesses via the Small Business Administration’s Paycheck Protection Program (PPP), the Federal Reserve will establish a facility to provide term financing backed by PPP loans,” the Fed said in a statement, adding that “additional details will be announced this week.”