Strand Pays $1.48 Million Over Restricted Covid Loan

The Strand, a historic independent bookstore in New York City, has agreed to pay $1,482,560 to resolve federal claims involving an improperly obtained Covid relief loan. The settlement concerns a $932,350 government loan received in 2021 by the business owned by Nancy Bass Wyden, wife of Oregon Democratic Sen. Ron Wyden.

The U.S. Attorney's Office in Washington, D.C., announced the civil settlement on November 3, 2026. Prosecutors said the bookstore was ineligible for the second-round funding under restrictions Congress introduced in December 2020.

According to the office of U.S. Attorney Jeanine Pirro, The Strand submitted its application through the Paycheck Protection Program (PPP), administered by the Small Business Administration, in February 2021.

During the application process, Nancy Bass Wyden certified that the congressional-spouse ownership restriction did not apply to the business.

"The spouse of a Member of Congress does not directly or indirectly hold a controlling interest in the applicant," Nancy Bass Wyden certified in the loan application, according to Pirro's office.

Federal prosecutors disputed that certification, arguing that the bookstore's ownership structure made it ineligible for the second-round funding.

"Ms. Wyden's certification was knowingly and materially false and Strand was not eligible for the second draw loan it received," Pirro's office said.

The restriction originated in legislation passed in December 2020, when Congress authorized additional PPP funding. The provision barred businesses from receiving second-draw loans when a member of Congress or their spouse directly or indirectly held a controlling interest.

That restriction was introduced after the initial round of forgivable loans had been authorized under the Coronavirus Aid, Relief, and Economic Security Act in March 2020.

In its response to CNBC, The Strand acknowledged the application error but maintained that it was unintentional. The bookstore also pointed to a lack of awareness about the legislative change.

"Unfortunately, the bookstore's accountant and the bank administering the loan were not aware of this change when the second-draw application was processed," the Strand said.

The bookstore explained that the restriction was introduced between the first and second rounds of the federal assistance program.

"We stand by the facts: the circumstances arose during an unprecedented and rapidly changing public health emergency, the mistake was unintentional. 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," the Strand said.

The settlement does not constitute an admission or determination of liability by the bookstore, according to Pirro's office.

Pirro defended the government's action, emphasizing that the relief program was intended to protect employment rather than provide assistance to ineligible businesses.

"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," Pirro said in a statement.

Her office also cited the False Claims Act, under which the government alleged that the bookstore had violated federal requirements. The law allows recovery beyond the government's actual financial losses in certain circumstances, according to prosecutors.

The settlement resolves a whistleblower lawsuit filed under the qui tam provision, which allows private parties to bring legal claims on behalf of the federal government and receive part of the recovered funds.

The lawsuit was filed by Blockquote Inc. in the U.S. District Court in Washington. The corporate entity will receive approximately $148,256 from the settlement, while its owners have not been publicly identified by Pirro's office.

The court docket remains sealed from public access.

Nancy Bass Wyden is the granddaughter of Ben Bass, who founded The Strand. Its flagship location operates in Greenwich Village, New York City.

A spokesperson for Sen. Ron Wyden's office said the senator and his wife do not discuss her business interests. The spokesperson also confirmed that the senator had no involvement in the loan application or settlement.