Strand Book Store to repay $1.5 million in PPP funds

Strand Book Store in New York City has agreed to return nearly $1.5 million to the federal government. The business is owned by Nancy Bass Wyden, the spouse of U.S. Senator Ron Wyden, D-Oregon. The repayment resolves a dispute over a loan from the Paycheck Protection Program.

The initial loan of $1.7 million was granted in 2020 under the original program rules. That version of the program did not exclude businesses owned by members of Congress or their immediate families. However, a law passed in December 2020 changed the eligibility criteria for the second round of funding.

The December 2020 legislation barred businesses from receiving second-draw loans if a member of Congress or their spouse held a direct or indirect stake. Strand Book Store received more than $930,000 in this second round despite the new restriction. Jeanine Pirro, the U.S. attorney for the District of Columbia, confirmed the bookstore received the funds in violation of the law.

Pirro stated that the program was designed to save American jobs, not to enrich ineligible parties. She noted that the loan recipient was the wife of a U.S. Senator. The U.S. Attorney's office described the certification provided by Bass Wyden as knowingly and materially false.

Bass Wyden issued a statement explaining that federal regulations changed rapidly during the pandemic. She said her accountant and the bank that administered the loan did not know about the new spousal ownership rules when the application was processed. She characterized the error as unintentional and said the funds were returned immediately after the issue was identified.

Bass Wyden wrote that the bookstore regrets the oversight. She asked for the matter to be viewed objectively and free from political considerations. She emphasized the importance of complying with all applicable laws.

Hank Stern, a spokesperson for Senator Wyden, said the senator does not discuss his wife's business. He stated that Wyden had no involvement in the loan application or the agreement with the federal government.