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EXHIBIT 5
SBA Letter to Plaintiff’s Lender
Case 1:24-cv-00040-DAE Document 20-5 Filed 04/29/24 Page 1 of 6
04/11/2022
SMALL BUSINESS ADMINISTRATION
WASHINGTON, DC 20416
VIA Forgiveness Platform
Julie Mccaulley
BancorpSouth Bank
Re: PPP Request for Production of Documents and Information
Borrower: HORSESHOE BAY RESORT HOLDINGS, LLC
SBA Loan No. 3866357206
Loan Approval Amount: $2,370,747.50
Loan Approval Date: 04/27/2020
Lender Forgiveness Decision Submission Date: 09/24/2021
Dear: Julie Mccaulley
The U.S. Small Business Administration (SBA) is requesting additional
documents or information for its review of the above-referenced Paycheck
Protection Program (PPP) loan.
This request is in addition to the documentation requested in the Notification
of Paycheck Protection Program Loan Review.
As detailed below, you must respond to this request within 20 business days
of the date of this letter. If SBA does not receive a response within the stated
period , or any other requested documentation is still outstanding, SBA will
make a decision based on available information. Such a decision may include
denial of forgiveness, referral to the Office of Credit Risk Management, and/or
transfer of this matter (borrower and lender) to the Inspector General.
If any of the following documents were not already provided by the borrower,
you must request them from the borrower. The borrower should respond to
these requests within 10 business days of receipt. You must submit the
documents and information provided by the borrower to SBA via the
Forgiveness Platform.
SBA requests the following documents or information from the borrower:
Subject: :
SBA Case: 3866357206 Horseshoe Bay Resort Holdings,
LLC.
File: SBA_Loan_Review_Correspondence.pdf
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SBA LOAN NAME: Horseshoe Bay Resort Holdings, LLC
SBA LOAN NUMBER: 3866357206
Full Denial Recommendation
Dear Lender,
We are conducting an affiliation review of documentation provided
for the above referenced PPP loan forgiveness application and
affiliated companies. Based on our preliminary findings, we are
considering recommending a Full Denial. Please understand this is
preliminary and will undergo more processing before reaching a final
decision. We are considering this recommendation for the following
reason (s):
A hold has been placed on the loan due to potential affiliation of
entities based on ownership, common management and/or identity
of interest that may impact eligibility. Please refer to the applicable
affiliation rules here: Affiliation Rules Overview.
Please see list of possible affiliates below:
1. Horseshoe Bay Resort Holdings, LLC
2. Horseshoe Bay Resort Destinations, LLC
3. Horseshoe Bay Resort Management, LLC
4. Horseshoe Bay Resort Realty
5. Horseshoe Bay Resort, Inc.
6. Jaffee Assets LLC
7. Barlow, Garsek & Simon LTD., LLP
8. Horseshoe Bay Corporation
The following documentation is required to determine eligibility of
the affiliated group:
File: SBA_Loan_Review_Correspondence.pdf
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• Affiliation Worksheet {SBA Form 3511) for the Borrower and its
affiliates at the time of their application.
• Complete all required information for the borrower and
affiliates; those listed and any unlisted above.
• Initialed, signed and dated by the borrower including all
addendums
• Select the applicable Size Standard {A. Employee-Based, B.
Receipt-Based or C. Alternative Size Standard) and include
supporting information and the verified NAICS Codes.
• Form 3511 is available through the PPP Platform. Please read
and follow instructions carefully
• Comprehensive Affiliation Tree/Corporate Organization Chart
with all ownership listed, their percentages owned, EIN/SSN's
with detailed management listed for those who hold control. If
ownership is held by an entity, the underlying ownership to
individuals must be provided with details.
• 2019 & 2020 complete, filed and signed Federal Income Tax
returns for all entity affiliates including all pages and all
schedules.
• SBA Form 2483 - PPP Borrower Loan Application with Addendum
A or Faith-Based Addendum as applicable. The Addendum A
should list all affiliates of the borrower and details of each
owner and their percentage owned down to the individuals and
each affiliate's employee count. If the affiliate has a waiver, a
listing of employee count per location is applicable.
• Provide a written and signed statement disclosing all PPP loans
obtained that are affiliated with the borrower, its affiliates and
majority ownership as listed above and/or per the Affiliation
Rules Overview link as applicable.
• 2019 and 2020 Income Statement and Profit and Loss
Statement.
File: SBA_Loan_Review_Correspondence.pdf
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• Please provide SBA Form 1149, Transcript of Account.
• Please provide written and signed Explanation for the fact that
the Texas Secretary of State list the registered Office Address
and Mailing address for Horseshoe Bay Resort Holdings, LLC as
920 Foch Street, Forth Worth, TX 76107 and the ETRAN
Application lists 101 Horseshoe Bay Blvd., Horseshoe Bay, TX
78657 and the 3508 Forgiveness Application lists P.O. Box 4449,
Horseshoe Bay, TX 78657
If these entities noted above are affiliates of the borrower, the
borrower must include them, and any other affiliates, in its
responses on the Affiliation Worksheet that the borrower submits. If
the borrower is not affiliated with one or more of the entities
identified above, the borrower must provide a detailed written
explanation on a separate sheet identified as an addendum to the
Affiliation Worksheet.
If you have additional information to address the issues mentioned
above, please respond to this message In the PPP platform as soon
as possible with the ADDITIONAL information.
Or if you do not have information to address the issues mentioned
above, PLEASE ASK THE BORROWER FOR THIS INFORMATION GIVING
THEM TEN (10) BUSINESS DAYS TO RESPOND.
We would like to have all information before making a
recommendation and forwarding for further processing. If this new
information alters our current proposed recommendation, you will
be notified of the change.
File: SBA_Loan_Review_ Correspondence.pdf
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If you have no additional information to provide and the borrower
has not responded within the required ten business days, please
respond in the PPP platform that you do not have additional
information. We have sent this same message through the platform.
Sincerely,
James Miller
Loan Specialist
Commercial Loan Service Center - Fresno
U.S. Small Business Administration
james.miller@sba.gov
As noted above, if the SBA does not receive a response within 20 business
days of the date of this letter, or any other requested documentation is still
outstanding, the SBA will take further action as indicated above. Further, the
SBA may, in the future, request additional information directly from the
borrower or require you to contact the borrower in writing to request
additional information.
Thank you for your cooperation.
Sincerely,
Office of Financial Program Operations
U.S. Small Business Administration
File: SBA_Loan_Review_ Correspondence.pdf
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