veteran participation loan
(33) Increased veteran participation program.— (A) Definitions .— In this paragraph— (i) the term “cost” has the meaning given that term in section 661a of title 2 ; (ii) the term “pilot program” means the pilot program established under subparagraph (B); and (iii) the term “veteran participation loan” means a loan made under this subsection to a small business concern owned and controlled by veterans of the Armed Forces or members of the reserve components of the Armed Forces. (B) Establishment .— The Administrator shall establish and carry out a pilot program under which the Administrator shall reduce the fees for veteran participation loans. (C) Duration .— The pilot program shall terminate at the end of the second full fiscal year after the date that the Administrator establishes the pilot program. (D) Maximum participation .— A veteran participation loan shall include the maximum participation levels by the Administrator permitted for loans made under this subsection. (E) Fees.— (i) In general .— The fee on a veteran participation loan shall be equal to 50 percent of the fee otherwise applicable to that loan under paragraph (18). (ii) Waiver .— The Administrator may waive clause (i) for a fiscal year if— (I) for the fiscal year before that fiscal year, the annual estimated rate of default of veteran participation loans exceeds that of loans made under this subsection that are not veteran participation loans; (II) the cost to the Administration of making loans under this subsection is greater than zero and such cost is directly attributable to the cost of making veteran participation loans; and (III) no additional sources of revenue authority are available to reduce the cost of making loans under this subsection to zero. (iii) Effect of waiver .— If the Administrator waives the reduction of fees under clause (ii), the Administrator— (I) shall not assess or collect fees in an amount greater than necessary to ensure that the cost of the program under this subsection is not greater than zero; and (II) shall reinstate the fee reductions under clause (i) when the conditions in clause (ii) no longer apply. (iv) No increase of fees .— The Administrator shall not increase the fees under paragraph (18) on loans made under this subsection that are not veteran participation loans as a direct result of the pilot program. (F) GAO report.— (i) In general .— Not later than 1 year after the date that the pilot program terminates, the Comptroller General of the United States shall submit to the Committee on Small Business of the House of Representatives and the Committee on Small Business and Entrepreneurship of the Senate a report on the pilot program. (ii) Contents .— The report submitted under clause (i) shall include— (I) the number of veteran participation loans for which fees were reduced under the pilot program; (II) a description of the impact of the pilot program on the program under this subsection; (III) an evaluation of the efficacy and potential fraud and abuse of the pilot program; and (IV) recommendations for improving the pilot program.