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Author Archives: Aaron Tenenbaum

CARES Act discussion

Many of our clients operate their own businesses, and as of today we have received and continue receiving numerous inquiries in connection with CARES Act (Coronavirus Aid, Relief, and Economic Security Act) enacted to provide economic relief to individuals and businesses facing economic hardship during current unprecedented challenging times.

While we monitor the developments, the situation is continuing to evolve.  On April 3, 2020, eligible small businesses and sole proprietors were able to start submitting application to any existing Small Business Association authorized lender for an SBA 7(a) loan from the Paycheck Protection Program (“PPP Loan”).  As of April 10, 2020, eligible independent contractors and self-employed individuals may also submit such application.

We encourage eligible businesses to apply through their banks/financial institutions that typically have designated staff to help out with SBA loan worksheet calculations.  You may also need help from your accountants to submit supporting documentation.

Due to the large number of PPP Loan applications that are being submitted to SBA-authorized lenders, an interested eligible business should seek to submit its loan application as soon as possible in light of the fact that the SBA has released statement that “there is a funding cap and lenders need time to process your loan.”

As many of our clients make significant payments to independent contractors as part of normal business operations, one of the most frequently asked questions is whether for purposes of calculating “payroll costs” should a business include compensation paid to independent contractors?  The position is that PPP Application enables independent contractors to apply for their own PPP loans.  As a result, without further guidance from the SBA to the contrary, applying businesses should not include compensation paid to independent contractors in their calculation of payroll costs, as such independent contractors are able to seek their own relief directly from the PPP.

Note that SBA Form 2483 dated 04/20 is the current version of the PPP Application.

Dmitry Polyakov

Attorney Dmitry Polyakov exclusively practices personal injury law at Tenenbaum Law Group. He has worked extensively in matters involving motor vehicles, dram shop, construction injuries, intentional torts, premises liability and other personal injury matters. He represents injured clients and their families throughout the State of Illinois and regularly recovers successful settlements and verdicts on their behalf.

Prior to joining Tenenbaum Law Group in 2014, Mr. Polyakov spent years working for a Chicago based law firm whose practice was devoted entirely to personal injury defense and insurance litigation. There, Mr. Polyakov counseled and protected the interests of his clients, which included corporations, insurance companies and insured individuals. He handled all forms of dispute resolution and provided proactive counsel that helped minimize and manage risk in a broad array of areas.

Mr. Polyakov is a member of the Chicago Bar Association. He earned his J.D. in 2008 from Indiana University Robert H. McKinney School of Law and his B.A., Magna cum laude, in 2005 from the University of Illinois at Chicago, where he was Phi Kappa Phi. He is admitted to the bars of the State of Illinois and the United States District Court for the Northern District of Illinois

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