Strand Bookstore to Repay $1.5M in Pandemic-Loan Settlement

By Tom Whitfield

Strand Bookstore will pay the federal government just over $1.48 million—nearly $1.5 million—to resolve a claim that it was ineligible for a $932,000 Paycheck Protection Program loan, federal prosecutors said.

Court records show that the agreement was finalized last month and announced this week. The bookstore received the $932,000 loan in February 2021, its second of two under the program. The announcement gives no amount or grant date for the first loan.

The inquiry arose from a whistleblower complaint, federal prosecutors said. The complaint said Nancy Bass Wyden, the store's owner, was barred from applying for the program because she is married to Senator Ron Wyden, Democrat of Oregon. Federal prosecutors described the family tie as the basis for the claim.

About 10 percent of the settlement will go to the whistleblower, prosecutors said. The announcement does not identify the whistleblower or explain how the roughly one-tenth share was calculated. It also stops short of explaining the payment beyond the amount and the allocation.

The case concerns a century-old New York institution. Ms. Wyden's grandfather opened the Strand at its original location on Fourth Avenue's “Book Row” in 1927, and it moved to its current location at Broadway and 12th Street in 1957, according to the store's account. The Strand says it houses “18 Miles of Books.”

Its offerings range from cheap used paperbacks to high-priced first editions, and it hosts many author events, the store's account said. Those details establish the scale of the business reached by the claim, but they do not show the effect of the repayment on staff, events or stock.

What does the settlement change for the Strand?

For the bookstore, the immediate change is a payment of just over $1.48 million, including an allocation of about 10 percent to the whistleblower. The settlement resolves the federal eligibility claim. The announcement does not order operational changes or disclose whether the payment will reduce author events, hiring or the sale of used books and first editions.

In a statement, Ms. Wyden acknowledged that an “unintentional” mistake had occurred during a “rapidly changing public health emergency.” She said the store's accountant and bank were unaware of the ban on congressional spouses participating in the loan program. That is the store's account of the error; the settlement announcement does not independently assess it.

“The funds were returned as soon as the issue came to our attention,” Ms. Wyden said. “We regret the oversight and recognize the importance of complying with all applicable laws and regulations.”

Her statement does not identify which funds were returned or give a date beyond “as soon as the issue came to our attention.” The public account therefore does not fully set out the sequence of repayment, settlement and whistleblower payment.

The federal claim ends with a repayment obligation and a whistleblower allocation, while the effect on a store built around cheap used paperbacks, high-priced first editions and many author events remains unstated.