STUDY OF FIXED-ASSET SMALL BUSINESS LOANS.

SEC. 703. STUDY OF FIXED-ASSET SMALL BUSINESS LOANS. (a) In General.— The Comptroller General shall conduct a study on whether there would exist any additional risk or cost to the United States if— (1) up to 10 percent of the loans guaranteed under chapter 37 of title 38, United States Code, were made for the acquisition or construction of fixed assets used in a trade or business rather than for the construction or purchase of residential buildings; and (2) such loans for acquisition or construction of fixed assets were for a term of not more than 10 years and the terms regarding eligibility, loan limits, interest, fees, and down payment were the same as for other loans guaranteed under such chapter. (b) Report.— (1) In general.— Not later than 180 days after the enactment of this Act, the Comptroller General shall transmit the report described in subsection (a) to the Committees on Veterans’ Affairs and the Committees on Small Business of the House of Representatives and the Senate. (2) Contents of report.— The report required by paragraph (1) shall specifically address the following: (A) With respect to the change in the veterans’ housing loan program contemplated under subsection (a): (i) The increase or decrease in administrative costs to the Department of Veterans Affairs. (ii) The increase or decrease in the degree of exposure of the United States as the guarantor of the loans. (iii) The increase or decrease in the Federal subsidy rate that would be possible. (iv) Any increase in the interest rate or fees charged to the borrower or lender that would be required to maintain present program costs. 113 STAT. 251 (B) Information regarding the delinquency rates, default rates, length of time required for recovery after default, for fixed-asset business loans, of a size and duration comparable to those contemplated under subsection (a), made available in the private market or under section 503 of the Small Business Investment Act of 1958.