Chena Hot Springs Resort, LLC, 4481 (March 21, 2002) Docket No. SIZ-2002-03-05-11 UNITED STATES OF AMERICA SMALL BUSINESS ADMINISTRATION OFFICE OF HEARINGS AND APPEALS WASHINGTON, D.C. ) SIZE APPEAL OF: ) Docket No. SIZ-2002-03-05-11 ) Chena Hot Springs Resort, LLC ) Decided: March 21, 2002 ) Appellant ) ) SBA Disaster Loan ) Application No. 9TAK-4 ) ) ORDER DISMISSING APPEAL WITHOUT PREJUDICE On March 5, 2002, Appellant Chena Hot Springs Resort, LLC (Appellant), appealed the determination of the Disaster Assistance - Area 4, Sacramento, California (Disaster Assistance Area Office), that Appellant was not a small business and thus ineligible for Economic Injury Disaster Loan (EIDL) assistance. The record in this case closed on March 21, 2002. On March 15, 2002, the SBA published in the Federal Register an interim final rule (New Rule) amending its EIDL Program regulations. [1] Effective immediately, the New Rule (1) increases the size standard for travel agencies, under North American Industry Classification System code 561510, from $1 to $3 million; [2] and (2) changes the size measuring date, for loan applications related to the September 11, 2001, terrorist attacks only, to the date SBA accepts the EIDL application, rather than September 11, 2001. [3] Further, so EIDL applicants need not bear the burden of resubmitting their applications under the new criteria, the New Rule deems "any previously submitted application . . . pending or denied because of size status . . . to have been resubmitted" on March 15, 2002. [4] Based on the substance, rationale, and timing of the New Rule, the Administrative Judge finds that the SBA intended it to apply to those businesses, such as Appellant, that have already appealed denial of their loan applications. Therefore, the Administrative Judge concludes that this appeal should be dismissed to allow Appellant to submit, to the Disaster Assistance Area Office, any evidence it has relevant to the new size criteria or any other additional evidence it wishes to submit. This dismissal is without prejudice to the Appellant's right to timely appeal any later determination that Appellant is not a small business. Accordingly, this appeal is DISMISSED WITHOUT PREJUDICE. The entire case file submitted by the Disaster Assistance Area Office is returned, as required by 13 C.F.R. Section 134.318. CHRISTOPHER HOLLEMAN Administrative Judge _________________________ [1] 67 Fed. Reg. 11874 (2002) (to be codified at 13 C.F.R. parts 121 and 123). A copy of the New Rule is attached to Appellant's copy of this order. Supplementary Information, Part I, 67 Fed. Reg. at 11874- 78. [2] Supplementary Information, Part II, 67 Fed. Reg. at 11878. Id. Posted: June, 2002