By Basant El-Faramawy
New York’s famed Strand Bookstore will reimburse nearly $1.5 million after improperly obtaining a pandemic-era small business loan for which it was legally ineligible, the U.S. Department of Justice announced Tuesday.
Loan Ineligibility and Settlement
The settlement stems from a $932,350 second-draw Paycheck Protection Program loan the store secured in 2021. Federal prosecutors said the bookstore was unqualified because its owner, Nancy Bass Wyden, is married to U.S. Sen. Ron Wyden, a Democrat from Oregon. PPP rules for the second draw required applicants to affirm that no member of Congress held a direct or indirect controlling stake in the business. The store had received a first PPP loan in 2020 under different eligibility requirements.
Owner’s Response
Bass Wyden said in a statement that federal relief regulations were changing rapidly during the pandemic and that the store was unaware of rule modifications between its two applications. She described the mistake as unintentional and said the funds were returned as soon as the issue came to light. A representative for Sen. Wyden’s office said the senator played no role in the loan or the settlement.
Cultural Landmark and Pandemic Challenges
Known for its “18 Miles of Books” slogan, the Strand has been a fixture of New York’s cultural scene since 1927 and has appeared in films and series such as “Sex and the City,” “Julie & Julia,” and “Six Degrees of Separation.” After coronavirus lockdowns caused a 70% revenue drop, Bass Wyden appealed for public support in October 2020. A viral #savethestrand campaign generated over 25,000 online orders in a single weekend. The store furloughed 188 of 217 staff in March 2020, rehired 30 after securing a PPP loan worth between $1 million and $2 million, and later cut 12 positions. Tensions with the workers’ union escalated after disclosures that Bass Wyden had purchased at least $115,000 in Amazon stock during the health crisis.
