Development Financing Act of 1979

Development Financing Act of 1979 - Title I: Area Eligibility - Directs the Secretary of Commerce to designate distressed areas as "redevelopment areas" for inclusion in various financial assistance programs for the purpose of generating and retaining private sector jobs in distressed areas, providing liquidity to financial institutions participating in the guarantee program, and enabling businesses to remain, locate, or expand in such areas. Establishes criteria for designating eligible areas on the basis of chronic economic distress, persistent unemployment for extended periods of time, substantial loss of population due to lack of employment opportunity, and loss of a major source of employment.

Requires an annual review of all designated areas and termination of designation upon the determination that such area no longer satisfies the requirements. Stipulates that a termination shall not occur before the end of the third year after the area was designated. Prohibits the termination of the designation of any area before September 30, 1980, unless the local governing body of such area specifically requests such action.

Title II: Development Financing - 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 trade secrets, received in connection with applications for loans, confidential.

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.

Title III: Conforming Amendments; Miscellaneous - Repeals the business development financing program under the Public Works and Economic Development Act of 1965.

Lists specified powers of the Secretary of Commerce in performing the duties under this Act. Authorizes the Secretary to prescribe recordkeeping requirements and audits of recipients of assistance. Directs the Comptroller General to conduct a thorough review of the programs authorized by this Act and to report to the Congress no later than July 1, 1980.

Requires the Secretary to make an annual report to the Congress not later than February 1 of the year following the year of the report.