Economies are opening up and people have to get back to businesses and raw materials will still be needed for various projects they have re-started or starting. Keeping people just locked up as in other countries, will not end Corona Virus.
The original 100 went to the seller of the existing home, or to build a new one. Simply put, the borrower got the loan and paid for the house. It was lent/created from the bank's cash reserves. Remember a bank can lend out 10x more than it has on deposit, based on the fractional reserve system [1] 1. https://www.investopedia.com/articles/investing/022416/why-banks-dont-need-your-money-make-loans.asp