The Strand, a well-known independent bookstore in New York City, has agreed to pay nearly $1.5 million to resolve claims related to receiving a Paycheck Protection Program (PPP) loan it was ineligible for due to ownership ties to a member of Congress. The loan, amounting to $932,350, was applied for in February 2021 under the federal program designed to aid businesses during the Covid-19 pandemic. The settlement follows allegations that Nancy Bass Wyden, the store’s owner and spouse of Oregon Senator Ron Wyden, falsely certified that the store was not controlled by a congressional spouse, which was a disqualifying factor for the loan.

According to the U.S. Attorney’s Office in Washington, D.C., Nancy Bass Wyden’s certification on the loan application was knowingly false. The Small Business Administration’s PPP rules, updated in December 2020, prohibited businesses controlled by members of Congress or their spouses from receiving second draw PPP loans. Despite this, the Strand received the second loan draw, prompting the civil settlement. The bookstore has acknowledged the mistake, attributing it to unawareness of the new restrictions at the time and processing errors by their accountant and bank.

This legal action stemmed from a qui tam lawsuit filed by a private whistleblower entity named Blockquote Inc., allowing the government to recover funds and award a share to the whistleblower, which in this case is approximately $148,256. The U.S. Attorney’s Office emphasized that the PPP was intended to protect jobs during the pandemic, and misuse by ineligible recipients undermines that purpose. While no formal liability was assigned to the bookstore, the settlement marked a resolution of the government’s claims under the False Claims Act.

The Strand, founded by Nancy Bass Wyden’s grandfather Ben Bass and operating in Greenwich Village, issued a statement describing the error as unintentional and called for impartiality in evaluating the case. Senator Ron Wyden, a Democrat and a prominent critic of former President Donald Trump, whose administration appointed the U.S. Attorney Jeanine Pirro overseeing this case, did not comment on the matter. The incident highlights the complexities and compliance challenges of the PPP loan program amid rapidly evolving pandemic relief policies.