The Strand Bookstore to pay nearly $1.5 million in settlement over ineligible PPP loan
Iconic New York bookstore The Strand has reached a settlement with federal authorities to pay $1.48 million regarding a pandemic-era loan it was legally ineligible to receive.
The Strand Bookstore has agreed to a $1,482,560 settlement with the U.S. Attorney’s Office to resolve allegations that it improperly received a Paycheck Protection Program (PPP) loan. The bookstore, owned by Nancy Bass Wyden, wife of Senator Ron Wyden, was ineligible for the $932,350 loan due to federal regulations prohibiting businesses controlled by members of Congress or their spouses from receiving such funds.
Federal prosecutors alleged that the loan application included a false certification regarding the ownership of the business. While the initial PPP program allowed broad access to relief funds, Congress updated the eligibility criteria in December 2020 to exclude businesses linked to federal lawmakers. The Strand applied for its loan in February 2021.
A spokesperson for the bookstore stated the violation was an unintentional oversight, attributing the error to the confusion surrounding rapidly changing pandemic relief laws. The company maintained that the loan was returned as soon as the issue was identified and expressed regret over the non-compliance.
The settlement effectively concludes the civil dispute, which was initiated following a whistleblower lawsuit. Authorities noted that the agreement serves as a resolution to the allegations without a formal determination of liability.