Strand Bookstore Agrees to $1.5M Settlement Over Ineligible PPP Loan Linked to Senator’s Spouse

The Strand, a landmark New York City bookstore, has agreed to pay nearly $1.5 million to resolve allegations that it improperly obtained a federal Paycheck Protection Program (PPP) loan reserved for eligible small businesses. The Department of Justice announced the settlement on Tuesday, stating the store violated the False Claims Act by securing a $932,350 second-draw PPP loan in 2021 despite a statutory prohibition against businesses controlled by a member of Congress or their spouse.

At the time of the application, the store’s controlling owner was Nancy Bass Wyden, wife of Democratic Senator Ron Wyden of Oregon. Federal law explicitly barred entities in which a lawmaker or their spouse held a controlling interest from receiving second-draw PPP funds.

Nancy Bass Wyden is pictured in New York City on Sept. 8, 2022. (Monica Schipper/Getty Images for Bottega Veneta)

The Strand submitted its application for the $932,350 loan in February 2021. As part of the process, Ms. Bass Wyden certified that the spouse of a member of Congress did not directly or indirectly hold a controlling interest in the business. Federal prosecutors allege this certification was “knowingly and materially false,” rendering the bookstore ineligible for the relief.

“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 Jeanine Pirro, U.S. Attorney for the District of Columbia. “Strand Book Store, owned by Nancy Bass Wyden, wife of U.S. Senator Ron Wyden, received $932,350 in second draw PPP funds despite a federal law barring businesses controlled by a member of Congress or their spouse from receiving those loans.”

Ms. Pirro emphasized that the office’s Fraud and Asset Recovery Division will continue to pursue those who exploit taxpayer dollars, adding, “No one gets a pass when it comes to defrauding the American taxpayer.”

An exterior view of The Strand bookstore in New York City on Sept. 14, 2019. (Alexandra Schuler/picture alliance via Getty Images)

In a statement to FOX Business, Ms. Bass Wyden characterized the violation as an “unintentional” mistake stemming from rapidly evolving pandemic-era regulations.

“During the COVID-19 pandemic, laws, regulations and eligibility requirements governing government relief programs were changing rapidly,” she said. “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.”

Ms. Bass Wyden stated the funds were returned once the issue was identified and expressed regret over the oversight.

“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,” she added. “We regret the oversight and recognize the importance of complying with all applicable laws and regulations. We hope this matter will be viewed objectively and in its proper context, with the understanding that the application of justice should always be fair, impartial, and free from political considerations.”

Sen. Ron Wyden (D-OR) speaks to reporters at the U.S. Capitol on May 6, 2025, in Washington, DC. (Kayla Bartkowski/Getty Images)

The PPP was established under the CARES Act in 2020 to provide forgivable loans to eligible small businesses and nonprofits to retain workers and cover expenses during the pandemic. Congress later authorized a second round of funding but included a provision prohibiting businesses controlled by members of Congress or their spouses from participating.

The Strand has been a fixture of New York City’s literary scene for nearly a century. Founded by Ben Bass in 1927 on Fourth Avenue, the store moved to its current location at Broadway and 12th Street in 1957 under his son, Fred Bass. Nancy Bass Wyden, Fred’s daughter, joined the business full-time at age 25 and now runs the operation, which boasts an inventory of more than 2.5 million used, new, and rare books.

FOX Business has reached out to Senator Wyden’s office for comment.

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