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Iconic NYC landmark Strand Bookstore to pay $1.5M for taking off-limits COVID loan
New York’s Strand Bookstore has agreed to pay nearly $1.5 million to settle an investigation into a COVID-era Paycheck Protection Program loan it was not eligible to receive. The case matters because the rules barred a business from taking a second-draw loan if a member of Congress or their spouse held a controlling interest.
The Strand applied for $932,350 in February 2021, after the restriction was introduced; its owner, Nancy Bass Wyden, is married to Oregon Senator Ron Wyden. The Justice Department said the application was knowingly and materially false, while the settlement makes no determination of liability. Bass Wyden called the application an unintentional mistake caused by rapidly changing rules, saying the money was returned once the issue came to light; the bookstore had earlier reported a 70% drop in revenue during the pandemic.
In short
- Strand Bookstore agreed to pay nearly $1.5 million over a PPP loan.
- The second-draw rules barred businesses controlled by a senator’s spouse.
- The owner says the application error was unintentional and funds were returned.
Steelman: both sides, in good faith
The strongest fair case each way — we don't pick a winner.
The case for
The rules were meant to keep public relief from going to businesses with a direct political connection, and the Strand’s application came after the restriction was in place. The Justice Department says it was knowingly and materially false, so a substantial settlement can be seen as protecting public funds and reinforcing accountability. A settlement without a determination of liability still resolves the investigation.
The case against
The Strand says it misunderstood rapidly changing rules and returned the money when the issue came to light, which supports treating the application as an error rather than deliberate abuse. The bookstore had reported a steep pandemic revenue decline, and the settlement makes no finding of liability. On this view, resolving the case through repayment and settlement is proportionate without treating the allegation as proven.
Explained simply
The Strand is a long-established independent bookshop in New York City, owned by Nancy Bass Wyden. During the COVID-19 pandemic, the US government offered Paycheck Protection Program loans to help businesses cover payroll and other costs.
A rule barred businesses from receiving a second loan if a member of Congress or their spouse had a controlling interest in them. Bass Wyden is married to Oregon Senator Ron Wyden, so the rule is central to the dispute. The case concerns how that restriction applied to the Strand and how public emergency aid was administered.