Case docket
Horseshoe Bay Resort Holdings, LLC v. U.S. Small Business Administration — SBA Office of Hearings and Appeals, No. PPP-3866357206
Horseshoe Bay Resort Holdings, LLC v. The United States Small Business Administration — 3 court filings in the archive from U.S. Small Business Administration, Office of Hearings and Appeals (OHA), filed between January 24, 2023 and June 16, 2023.
Case facts
| Court | U.S. Small Business Administration, Office of Hearings and Appeals (OHA) |
|---|---|
| Filings | 3 public filings |
| Filed | 2023-01-24 – 2023-06-16 |
Case summary
This page holds the administrative record of a Paycheck Protection Program loan-review dispute, filed as exhibits in the U.S. District Court for the Western District of Texas, No. 1:24-cv-00040-DAE. Horseshoe Bay Resort Holdings, LLC was approved for PPP loan no. 3866357206 in the amount of $2,370,747.50 on April 27, 2020, and its lender submitted a forgiveness decision for the full amount on September 24, 2021. On January 24, 2023 the SBA issued a Final SBA Loan Review Decision setting the final forgiveness amount at $0, finding the borrower ineligible because it, together with its affiliates, exceeded the maximum allowable number of employees and the SBA small business size standards. The SBA Office of Hearings and Appeals affirmed on May 9, 2023 and denied reconsideration on June 16, 2023.
Case at a glance
| Parties | Appellant: Horseshoe Bay Resort Holdings, LLC, represented by James W. Kim of Arnold & Porter Kaye Scholer LLP. Agency: U.S. Small Business Administration, represented by Michael Blumenthal. The lender addressed in the decision letter is BancorpSouth Bank |
|---|---|
| Court and docket | U.S. Small Business Administration, Office of Hearings and Appeals, Decision Nos. PPP-3866357206 and PFR-3866357206, on SBA PPP Loan No. 3866357206; the documents are exhibits 5, 7, 9 and 10 filed in the U.S. District Court for the Western District of Texas, No. 1:24-cv-00040-DAE, on April 29, 2024 |
| Program | Paycheck Protection Program (PPP), a temporary SBA 7(a) loan program established under section 1102 of the Coronavirus Aid, Relief, and Economic Security (CARES) Act, Pub. L. 116-136 |
| Claims | An appeal petition filed February 23, 2023 seeking OHA review of the Final SBA Loan Review Decision, and a petition for reconsideration filed May 18, 2023. The appellant argued it should be classified under NAICS Code 72 because food and beverage work accounted for the largest number of employees and a large portion of revenue and costs |
| Disposition or status | Affirmed. OHA affirmed the Final SBA Loan Review Decision indicating a final forgiveness amount of $0 in a corrected decision issued May 9, 2023, and denied the petition for reconsideration on June 16, 2023 under 13 C.F.R. § 134.1211(c). The page carries no district court ruling |
| Status checked | 2026-09-23 · against DOJ press releases through 2026-09-22; court docket not yet read |
What did the SBA decide?
That the borrower was ineligible for the PPP loan and that the final forgiveness amount is $0. The decision letter of January 24, 2023 states that after review of the documentation the SBA concluded the borrower business, or together with its affiliates, exceeds the maximum allowable number of employees and the SBA small business size standards, against a lender forgiveness decision amount of $2,370,747.50 submitted on September 24, 2021.
What did the Office of Hearings and Appeals decide?
It affirmed. The corrected decision of May 9, 2023 records OHA's jurisdiction under 13 C.F.R. §§ 134.102(w) and 134.1201 and affirms the final forgiveness amount of $0. It also records the SBA's determination that the loan was ineligible for an affiliation waiver because the borrower does not have a NAICS code beginning with 72, that the largest source of revenue was membership rather than food and beverage, and that reported gross receipts of $32,665,891 for calendar 2019 and $61,079,267 for the fiscal year to March 31, 2020 both exceed the receipts-based size standard of $19,000,000 for NAICS code 713910.
What figures does the record give?
An approved loan amount of $2,370,747.50 with a loan approval date of April 27, 2020 in the Final SBA Loan Review Decision, and the same figure in the corrected decision, which also records an application signed and dated April 28, 2020 stating average monthly payroll of $948,299.00 and 380 employees, and disbursement on April 28, 2020. The reconsideration decision of June 16, 2023 types the loan amount as $2,370,474.50. The fourth document on the page, labeled a full denial recommendation letter, is in fact the SBA's letter of April 11, 2022 to the lender requesting production of documents and information for its review of the loan.
Summary written from the documents on this page; every sentence is sourced.
Filings
3 public filings from this case, in filing-date order.
Court, dates and docket numbers are as recorded on the filings.