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The bank is expected to onboard investment grade companies who will now have the option of paying suppliers with their own capital reserves or with leverage the capital available from JPMorgan, according to Bloomberg.

The increase in liquidity comes in a dire time when many small- and medium-sized companies are short on cash due to the economic disruption caused by the coronavirus. Governments have each taken their own measures to help increase access to liquidity.

For example, the U.S. initiated the Payment Protection Program to provide government-backed loans to struggling small businesses. However, those funds have run out quickly, leaving many businesses without desperately needed cash flow.

“We’re taking a relatively short-term risk on larger companies,” Stuart Roberts, JPMorgan’s Global Head of Trade, said. “I couldn’t think of a safer way to inject liquidity into a credit-stressed small- or medium-sized business right now.”

The partnership will be critical in facilitating cash flow through supply chains. The businesses of interest for this initiative combined can complete more than $120 trillion worth of transactions a year, with $20 trillion being held up in the supply chain through stalled payments. The aim is for the initiative to decrease stalled payments.

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