Development Financing Act of 1979

Development Financing Act of 1979 - States that the purposes of this Act are to generate and retain private sector employment opportunities in distressed areas through guaranteed loans, direct loans, and interest subsidies, in order to encourage and enable businesses to remain, locate, or expand in such areas, and to provide liquidity to financial institutions through guarantees of long-term loans to such businesses.

Authorizes the Secretary of Commerce to: (1) make direct loans to finance projects in designated areas for up to 65 percent of project costs; (2) guarantee 100 percent of up to 90 percent of the principal amount of, and interest payments on, loans made to finance eligible projects; and (3) contract to pay interest subsidies for a period not to exceed ten years in connection with guaranteed loans. Stipulates that such assistance must be related to industrial or commercial purposes which will generate or retain private sector employment. Directs the Secretary to establish criteria for the selection of projects for assistance. Sets forth factors to be considered by the Secretary in deciding among applicants and conditions of assistance including, but not limited to, assurances of repayment and the term of the loan or guarantee or the expected life of the asset financed. Establishes dollar amount limitations on guaranteed and direct loans, and on the size of firms to be assisted. Prohibits more than 30 percent of the aggregate principal amount of loans which may be made or guaranteed in any fiscal year to be used to provide working capital.

Stipulates that loan guarantees and interest subsidy agreements shall be incontestable. Permits the Secretary to subordinate up to 20 percent of the Federal financial assistance extended under this Act to other loans made in connection with an eligible project. Authorizes the Secretary to enter into arrangements for the servicing of direct and guaranteed loans.

Requires the Secretary to keep confidential trade secrets received in connection with applications for loans.

Authorizes appropriations for loan guarantees and specific development financing programs for fiscal year 1980. Terminates the authority to make loans or guarantees or to enter into contracts to provide interest subsidies under this Act on September 30, 1980.