A bill to authorize emergency loan guarantees to units of government.

Expresses the finding of Congress that in recessionary periods, a loan guarantee authority in the Federal Government is necessary to enable local governments to maintain a sound fiscal structure.

Declares it to be the purpose of this Act to provide authority for loan guarantees to units of government to meet temporary and urgent fiscal requirements. Authorizes the Secretary of the Treasury to guarantee loans made by any financial institution to units of local government to assist that unit of government to meet temporary and urgent financial needs. Requires the Secretary to determine before guaranteeing any loan that such loan: (1) is necessary; (2) is not otherwise available; and (3) carries reasonable assurance of repayment. Directs the Secretary to require governments receiving guarantees to develop a balanced budget and a long-range financial planning program.

Limits the amount of loans to any unit of government which may be guaranteed in any one year to $500,000,000 unless the Secretary submits a proposal for a larger guarantee to Congress and neither house takes any negative action on such proposal within thirty calendar days.

Limits the total amount of loan guarantees under this Act to $5,000,000,000.

Establishes a loan guarantee fund within the Treasury. Authorizes to be appropriated to the fund such amounts as may be necessary to provide requisite capital. Authorizes the Secretary to use the proceeds of the sale of securities issued under the Second Liberty Bond Act to cover guarantees in case there is an insufficient amount in the fund.

Creates a Loan Guarantee Policy Board to establish policies governing the granting of guarantees. Authorizes all Federal Reserve Banks to act as fiscal agents of the government in making guarantees.

Provides for the termination of all authority under this Act one year after the date of enactment or upon the establishment of an Emergency Loan Guarantee Corporation.

Directs the Secretary to report to Congress on all operations under this Act within one year of enactment. Requires the report to contain the Secretary's recommendations with respect to the establishment of an Emergency Loan Guarantee Corporation.