Famous New York Bookstore to Pay Nearly $1.5 Million Over Covid Loan

The Strand bookstore in New York City has agreed to pay $1,482,560 to settle a civil case over a Covid government loan.

What Happened

The famous Greenwich Village store applied for a $932,350 loan in February 2021 through the Paycheck Protection Program. Store owner Nancy Bass Wyden signed the application and certified that no member of Congress or their spouse held a controlling interest in the business. U.S. Attorney Jeanine Pirro's office stated that this certification was false and that the store was not allowed to get the loan because Bass Wyden is married to Oregon Democratic Senator Ron Wyden.

Reactions and Explanations

Pirro stated that the loan program was meant to save jobs and not to help ineligible people. The Strand released a statement calling the mistake unintentional. The store explained that its accountant and the bank handling the loan did not know about the rule change that banned businesses owned by spouses of lawmakers from getting second-draw funds. A spokesperson for Senator Wyden stated that the senator and his wife do not talk about her business and that he had nothing to do with the loan or the settlement.

Whistleblower and Settlement Details

The civil case started because of a whistleblower lawsuit filed by a corporate entity named Blockquote Inc. in a Washington court. Blockquote will receive about $148,256 as its share of the recovery, though the court docket for the lawsuit remains sealed. The settlement does not include any official determination of liability by the store itself.

Context

Congress set up the Paycheck Protection Program to help businesses keep workers employed during the public health emergency. Rules for the program changed as new laws were passed, leading to strict limits on who could receive relief funds.