Strand Bookstore to pay $1.48 million in federal settlement

The Strand Bookstore, a prominent New York City landmark, has agreed to pay $1,482,560 to resolve allegations that it improperly obtained a second-draw Paycheck Protection Program (PPP) loan in 2021. The U.S. Department of Justice announced that the bookstore was ineligible for the $932,350 loan because its controlling owner, Nancy Bass Wyden, is the spouse of U.S. Senator Ron Wyden of Oregon.

Under the Economic Aid to Hard-Hit Small Businesses, Nonprofits, and Venues Act, businesses were prohibited from receiving second-draw PPP funds if a member of Congress or their spouse held a controlling interest. Federal prosecutors alleged that the bookstore’s application included a certification that was “knowingly and materially false” regarding the ownership status.

Nancy Bass Wyden stated that the error was unintentional, noting that regulations were changing rapidly during the pandemic and the bookstore was unaware of the eligibility shifts between its first and second loan applications. She added that the funds were returned as soon as the issue was identified. A spokesperson for Senator Wyden stated that the senator has no involvement in his wife’s business or the settlement.