Industrial Adjustment Act of 1979 - Declares that the purpose of this Act is to enable the Federal Government to facilitate the movement of labor and capital into innovative, expanding, and employment-generating sectors of the economy in a manner which will contribute to the economic and social well-being of the United States. Empowers the President, during a threat of an economic emergency, to direct the Secretary of Commerce acting through the Economic Development Administration to carry out industrial adjustment assistance in accordance with the purpose of this Act. Authorizes such assistance in the form of direct grants to workers for relocation, retraining, rent and mortgage payments, and for other purposes. Authorizes assistance to businesses in the form of guaranteed loans, direct loans, and interest subsidies. Limits the amount of assistance any one business may receive to $500,000,000. Makes such assistance available to workers and businesses without regard to specified limitations on the Secretary's authority provided by law. Authorizes up to $1,500,000,000 in loan guarantees of principal in fiscal year 1980 subject to limitations in appropriations Acts.