Answer:
The RFC was an independent government corporation that lent money to solvent companies and institutions. A solvent business isn't worth enough money to sell and pay off the debt it owes in the short term. Thus, the RFC lent money to state/locally run banks, and other various businesses to keep them from failing. These businesses were allowed to make long term payments to repay the loans. These loans were made to institutions that weren't a part of the federal reserve system. The vast majority of the money lent was paid back as the economy rebounded from the Great Depression.