By Fatma Younis
New York's Strand Bookstore will pay nearly $1.5 million to settle allegations it improperly received a pandemic-era Paycheck Protection Program loan, the U.S. Department of Justice announced Tuesday.
Ineligibility Due to Senator's Wife Ownership
The DOJ said the bookstore was ineligible for the second-draw PPP loan of $932,350 obtained in 2021 because its owner, Nancy Bass Wyden, is the wife of U.S. Senator Ron Wyden, Democrat of Oregon. Program rules barred businesses in which a member of Congress holds a direct or indirect controlling interest.
Settlement Details and Response
The store had received a first PPP loan in 2020 under different certification requirements. U.S. Attorney Jeanine Pirro stated the program was designed to save jobs, not to enrich ineligible recipients. Bass Wyden said the eligibility rules changed rapidly during the pandemic and the mistake was unintentional. She said the funds were returned as soon as the issue was discovered and acknowledged the importance of compliance.
The Strand, known for its "18 Miles of Books," is a cultural landmark founded in 1927. During the pandemic, revenue fell 70%, leading to furloughs and layoffs. The store also faced union tensions after reports Bass Wyden purchased Amazon stock.
