A bill to amend the Emergency Loan Guarantee Act to permit the Emergency Loan Guarantee Board to guarantee the bonds of States and municipalities.

Provides, under the Emergency Loan Guarantee Act, for the Emergency Loan Guarantee Board to guarantee loans where the borrower is a State or political subdivision and where the State certifies that it could not lend the political subdivision sufficient funds or guarantee debt instruments in order for the subdivision to meet its needs without jeopardizing the financial stability of the State.

Exempts State and political subdivision borrowers from the requirement that a loan be payable in not more than five years, renewable for not more than an additional three years. Provides that the State or political subdivision loan shall be payable in whatever period of time the Board, by rule, determines is appropriate.

Exempts State and political subdivision loans from the negotiating requirement that the Board make every effort to arrange that principal and interest payments be secured by sufficient property to collateralize fully the amount of the loan guarantee.

Directs that the Board, in granting a loan guarantee to a debt issue of a State or its political subdivision: (1) shall require that the debt instruments be subject to Federal taxation; (2) shall require that the State or agency granted a loan guarantee give evidence that its budget will be balanced by real revenues within three years after the guarantee is granted and for the period of time covered by the guarantee; (3) shall require that only full faith and credit obligations shall be eligible for the guarantee; (4) may require that a member of the Board or its designee serve on the State or local governmental agency or agencies which have the responsibility for revenue collection and expenditures; and (5) may require that the State or local agency adopt fiscal guidelines and rules and regulations deemed necessary to assure payment of interest and principal on the debt instrument guaranteed by the Board.

Increases from $250,000,000 to $5,000,000,000 the maximum amount of Board obligations under all outstanding loans.

Extends until June 30, 1977 (presently expired on June 30, 1973) the requirements that the Board submit to Congress a report on its operations.

Extends until December 31, 1977 (presently terminated on December 31, 1973) the authority of the Board to enter into any guarantee under this Act.

Adds new definitions of "State" and "political subdivision" to the Act.