New York's Strand Bookstore has agreed to repay nearly $1.5 million after it improperly received a federal loan intended for small businesses during the COVID-19 pandemic. The U.S. Department of Justice announced the settlement Tuesday.
According to the DOJ, the bookstore was ineligible for a second draw Paycheck Protection Program loan of $932,350 in 2021 because its owner, Nancy Bass Wyden, is the wife of U.S. Senator Ron Wyden, an Oregon Democrat. The program's rules required applicants to certify that no member of Congress had a direct or indirect controlling interest in the business. The Strand had received a similar loan in 2020, which did not have this specific certification requirement.
"The Paycheck Protection Program was created to save American jobs, not to enrich those who aren’t eligible for taxpayer-funded relief, especially the wife of a U.S. Senator," stated U.S. Attorney Jeanine Pirro.
Bass Wyden stated that the bookstore was unaware of the specific eligibility changes between the first and second loan applications, attributing the oversight to the rapidly changing regulations during the pandemic. "The mistake was unintentional, and the funds were returned as soon as the issue came to our attention," she said, adding that the bookstore regrets the oversight and recognizes the importance of compliance.
A spokesperson for Senator Wyden's office confirmed that the senator and his wife do not discuss her business and that he had no involvement in the loan or settlement.
The Strand Bookstore, a New York cultural landmark known for its "18 Miles of Books," was founded in 1927 by Bass Wyden's grandfather, Benjamin Bass. After the pandemic triggered lockdowns, Bass Wyden appealed to the public for support in October 2020, noting that a previous PPP loan had kept the store afloat but that revenues were down 70%.
At the onset of lockdowns in March 2020, the bookstore furloughed 188 of its 217 employees. Following its first PPP loan, 30 workers were brought back in June, but 12 layoffs occurred weeks later. The Post also reported that Bass Wyden purchased at least $115,000 worth of Amazon stock during the pandemic.