Stearman Aircraft Inc. was founded in 1926 by Lloyd Stearman in Venice, CA where he built the first Stearman biplanes, the C-1, C-2 and the C-3. Stearman had been in California for one year when his Wichita friends raised $80,000 to move back to Kansas and establish his company there. In 1929, Stearman Aircraft became part of a large holding company, the United Aircraft and Transport Corp. (UATC), of which Boeing was the major stock holder.

The Stearman Model 6 Cloudboy was a training biplane for military and commercial purposes. A total of seven aircraft were built. The YBT-5 was a re-engined version of the YPT-9 and only one was produced.