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Reconstruction Finance Corporation (RFC), former U.S. government agency, created in 1932 by the administration of Herbert Hoover. Its purpose was to facilitate economic activity by lending money in the depression.
An agency created by the the U.S. government to aid the troubled banking sector in the years following the stock market crash of 1929. The Reconstruction Finance Corporation (RFC) was approved by Congress to begin business in 1932 with a mandate to make emergency loans to banks that were in danger of failing.Next Up.he Reconstruction Finance Corporation (RFC) was approved by Congress to begin business in 1932 with a mandate to make emergency loans to banks that were in danger of failing. Next Up.