Why did hoover prefer to give money to railroads, banks, and large businesses rather than individulas?

With the Reconstruction Finance Corporation - RFC, Hoover decided to give money to support state and local governments and loans to banks, railroads, mortgage associations, and other business. The president preferred to give money to them because he believed that by holding down those companies and bringing them up the companies would grow the job rates and pay higher wages, and at the end, it would also benefit individuals.

nothing certain is known about what happened, but it seems that the country declined gradually, perhaps due to bad government, or, more likely, due to a series of bad harvests, which resulted in widespread and recurrent famine.