New York's Strand Bookstore to repay nearly $1.5M after improperly receiving federal loan

New York's beloved Strand Bookstore will pay back nearly $1.5 million after improperly applying for and receiving a pandemic-era small business loan even though it wasn't eligible, the U.S. Department of Justice has announced.

According to the DOJ, the Strand was ineligible because the owner, Nancy Bass Wyden, is the wife of U.S. Sen. Ron Wyden, a Democrat from Oregon. The DOJ announced the settlement Tuesday.

In 2021, the Strand applied for a second draw loan of $932,350 from the Paycheck Protection Program, which required applicants to certify that a member of Congress did not have a direct or indirect controlling interest in the business. The bookstore had previously received a PPP loan in 2020, but that money did not require the same certification.

“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,” said U.S. Attorney Jeanine Pirro in a statement.

Bass Wyden said in a statement that during the COVID-19 pandemic, the laws and regulations surrounding government relief programs “were changing rapidly” and that the bookstore was not aware of the eligibility changes between when it applied for the first and second loan.

“We stand by the facts: the circumstances arose during an unprecedented and rapidly changing public health emergency, the mistake was unintentional, and the funds were returned as soon as the issue came to our attention,” Bass Wyden said. “We regret the oversight and recognize the importance of complying with all applicable laws and regulations.”

The Associated Press has sent an email requesting comment to the Strand. A spokesperson for Wyden's office said the senator and his wife do not discuss her business and he had no involvement in the loan or settlement.

Known for its “18 Miles of Books” on its shelves, the Strand is a fixture of New York’s cultural scene and downtown life. It has appeared in numerous TV shows and movies, including “Sex and the City,” “Julie & Julia,” “Six Degrees of Separation,” and more. Offerings range from used paperbacks for a few dollars apiece to rare first editions, and it is a prime spot for authors to give book talks.

Bass Wyden’s grandfather, Benjamin Bass, founded the shop in 1927. She and her father, Fred Bass, ran it together before his death in 2018.

After the coronavirus pandemic spurred lockdowns and upended brick-and-mortar businesses, Bass Wyden appealed to the public in October 2020 to shop at the Strand in person or online. She said in a social media post that “the loan we were given” had kept the store afloat for eight months, but revenues were down 70% and the business was “unsustainable.”

A #savethestrand campaign then brought in more than 25,000 online orders in one weekend, Bass Wyden told The Washington Post at the time.

According to the Post, Bass Wyden had furloughed 188 of 217 employees when lockdowns began in March 2020, brought back 30 workers that June after getting a Paycheck Protection Program loan of between $1 million and $2 million, but then laid off 12 workers some weeks later.

Meanwhile, strife mounted between her and the workers’ union, particularly after it emerged that she had bought at least $115,000 worth of Amazon stock during the pandemic.

___ Kruesi reported from Providence, Rhode Island.