Intervening to stop a financial free fall is a good idea because lots of blameless people pay the price for that free fall and the chaos that comes with it isn't justifiable when our government is capable of stopping it. How the clean-up is managed says more about what we value and the righteousness of the cause.
The grants/loans is a bit of a false dichotomy. As I understand it, many of the small business "loans" don't have to be repaid; grants by another name.
A financial crisis like this one isn't the "fault" of the "business community," nor those they employ, nor those who profit from/support them, e.g., the myriad smaller businesses that they and their employees rely on or buy from.
We do not live in a simple, barter economy. We live in an interconnected and complex economy. The idea that the "free market" will solve all ills isn't fundamentally wrong, but it misunderstands how the free market solves those ills.
The guillotine was the free market at work in France. Communism was the free market at work in czarist Russia. The Nazis were the free market at work in Germany. Slavery was the free market at work in the colonies and United States. Those are versions of the free market I would prefer to avoid, if possible.