In our report from last night that JPM has halted all non-government guaranteed small business loans on what we surmised was fears of a default tsunami set to hit America's companies, we asked "just how bad is it going to get" and implicitly, if not commercial banks, then who will fund America's "main street" businesses?

We got the answer this morning when the Federal Reserve announced its latest series of sweeping, unprecedented action to backstop the credit pillars supporting the entire economy and provide as much as $2.3 trillion in additional loans during the coronavirus pandemic, including starting programs to aid small and mid-sized businesses as well as state and local governments: "The funding will assist households and employers of all sizes and bolster the ability of state and local governments to deliver critical services during the coronavirus pandemic."

Among the various initiatives are:

The Main Street Lending Program will "ensure credit flows to small and mid-sized businesses with the purchase of up to $600 billion in loans." This means that the Paycheck Protection Program will likely be expanded by an additional $250BN to reach a total of $600BN.

Expanding the size and scope of the Primary and Secondary Market Corporate Credit Facilities and the Term Asset-Backed Securities Loan Facility to support as much as $850 billion in credit

A Municipal Liquidity Facility which will offer as much as $500 billion in lending to states and municipalities, by directly purchasing that amount of short-term notes from states as well as large counties and cities

Starting the Paycheck Protection Program Liquidity Facility, "supplying liquidity to participating financial institutions through term financing backed by PPP loans to small businesses"