The Strand, an iconic New York City bookstore owned by Nancy Bass Wyden, the wife of Democratic Oregon Senator Ron Wyden, has agreed to pay $1,482,560 to settle allegations that it improperly received a COVID-era Paycheck Protection Program (PPP) loan [1]. The bookstore received a $932,350 second-draw PPP loan in 2021, which it was barred from obtaining under federal law [1]. Federal law prohibited businesses from receiving second-draw PPP loans if a member of Congress or their spouse "directly or indirectly held a controlling interest in the PPP loan applicant," according to the Department of Justice [1].
The Strand applied for the loan in February 2021, and as part of the application, Nancy Bass Wyden certified that the spouse of a member of Congress did not directly or indirectly hold a controlling interest in the business [1]. The DOJ alleged this certification was "knowingly and materially false" because Wyden was The Strand's controlling owner, making the bookstore ineligible for the loan [1]. U.S. Attorney Jeanine Pirro stated that "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" [1].
In response, Nancy Bass Wyden characterized the violation as an "unintentional" mistake that occurred during rapidly changing pandemic-era relief rules [1]. She explained that "the restriction at issue was enacted between the first and second rounds of the PPP program, and unfortunately, the bookstore's accountant and the bank administering the loan were not aware of this change when the second-draw application was processed" [1]. Wyden stated that the funds were returned once the issue was discovered and expressed regret over the oversight [1].
CONCLUSION
The Strand's $1.5M settlement resolves allegations of improper PPP loan receipt by a business controlled by a sitting senator's spouse, highlighting enforcement of COVID-relief program eligibility restrictions [1]. While characterized as an unintentional error by the bookstore's owner, the case underscores the DOJ's commitment to pursuing PPP fraud cases regardless of the applicant's prominence [1].