The Reconstruction Finance Corporation

The Reconstruction Finance Corporation (RFC) was a U.S. government agency created in 1932 to help stabilize the economy during the Great Depression. It provided financial support—such as loans and investments—to banks, businesses, and state governments facing financial difficulties. By doing so, the RFC aimed to boost economic activity, preserve jobs, and restore confidence in the financial system. It acted as a safety net, encouraging lending and investment when private banks were hesitant, ultimately helping the country recover from economic downturn.