[1][2] Design of the Speedster started in 1933 as sales of the Rearwin Ken-Royce and Junior began to flag in response to the Great Depression.

However, efforts to certify the design were unsuccessful as it could not meet the Civil Aeronautics Authority's spin recovery rules (later relaxed).

[3]: 117 Multiple engineers were hired and passed through Rearwin as the company attempted to improve the aircraft's spin recovery.

[2] As such, it was designed around the ACE Cirrus, an inverted, four-cylinder inline engine that was tightly faired into the body of the airplane.

[2] To address the issues with spin recovery, the flight controls were given improved bearings and rudder-centering springs.