But who are they going to lend to? Aren't most companies losing cashflow due to loss of employees/supply, and don't have demand due to everyone staying home? T

But who are they going to lend to? Aren't most companies losing cashflow due to loss of employees/supply, and don't have demand due to everyone staying home? The only companies that are going to be borrowing are those that are out of money and need to try and weather the current crisis. If the banks make a mistake here and the companies they lend to go bankrupt, they go bankrupt too.