Reconstruction Finance Corporation (RFC)

The Reconstruction Finance Corporation (RFC) was a U.S. government agency established in 1932 during the Great Depression. Its main purpose was to provide financial support to banks, businesses, and state governments to help stimulate the economy. By offering loans and purchasing securities, the RFC aimed to stabilize struggling industries and promote economic recovery. It played a critical role in restoring confidence in the financial system and helped pave the way for later government programs. The RFC was important for aiding the recovery efforts during a time of severe economic hardship in the United States.