[citation needed] It was originally powered by a 20 horsepower (15 kilowatts) Brownback "Tiger Kitten" engine.

On September 12, 1930, a test flight of the Taylor Cub ended abruptly when the aircraft ran out of runway; the underpowered engine was unable to lift the monoplane higher than five feet (1.5 meters) above the ground.

In October, a Salmson AD-9 radial engine produced in France was fitted to the Cub giving good performance, but it was expensive to maintain.

[citation needed] Finally in February 1931, Taylor introduced an improved Cub airframe, powered by the newly developed Continental Motors 37 horsepower (27.6 kilowatt) A-40 engine.

The new Taylor E-2 Cub was awarded Category 2 or "Memo" certificate 2-358 on June 15, 1931, and licensed by the U.S. Department of Commerce for manufacture (it was later awarded full Approved Type Certificate A-455 on November 7).