Why would you borrow to hoard?
EDIT: And you were talking about the fed buying bonds, not lending.
In my understanding, FED first produce 1B money to buy bonds, and these bonds will become FED's reserve and enable FED to loan 10B money to commercial bank at 0 interest. Commercial banks are happy to borrow at 0 interest (free money), but they have a difficulty to loan out these money due to many of the companys already scared by financial crisis and are not willing to take loan due to uncertain business condition