Reconstruction Finance Corporation - RFC
Categories: Banking
After the Great Recession, there was a great road to recovery. If the recovered economy was to give an acceptance speech, the Reconstruction Finance Corporation (RFC) would definitely be thanked.
The RFC was created in 1932 as part of the New Deal. Its main gig? Giving out emergency loans. State and local governments, banks, mortgage companies, railroad companies (they were bigger back in the day), and other large sectors received loans from the RFC. These loans helped them stay afloat, and eventually get back on the economic road to recovery. Some loans also went toward relief programs.
Eventually, in 1957, the government laid the RFC to rest. It had done its duty: $2 billion worth of heavy lifting. Plus, almost all of the loans were fully repaid. No handouts to see here, folks.
