Disbanding




After World War II ended, the type of loans provided by the RFC were no longer in demand. During the late 1940s RFC made a large loan to Northwest Orient Airlines earmarked for the purchase of ten Boeing Stratocruiser airliners. The loan became controversial, seen as a political favor to the Boeing Corporation, who supported the re-election campaign of President Harry S. Truman, and sparked a congressional inquiry. President Dwight D. Eisenhower was in office when legislation terminated the RFC. It was "abolished as an independent agency by act of Congress (1953) and was transferred to the Department of the Treasury to wind up its affairs, effective June 1954. It was totally disbanded in 1957." The Small Business Administration was established to provide loans to small business, and training programs were created. Several federal agencies took over RFC assets, and the tin and abaca programs were handled by General Services Administration. The Commodity Credit Corporation, which was created to help farmers, remained in operation. Another establishment kept in operation is the Export–Import Bank, which encourages exports.

In 1991, Rep. Jamie L. Whitten (Democrat of Mississippi) introduced a bill to reestablish the RFC, but it did not receive a hearing by a congressional committee, and he did not reintroduce the bill in subsequent sessions.

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