Beloved NYC bookstore to repay nearly $1.5 million after taking COVID-era loan

Beloved NYC bookstore to repay nearly $1.5 million after taking COVID-era loan The shop has been in countless films and TV shows, including ‘Sex and the City’ - Bookmark - CommentsGo to comments Become an Independent member to bookmark this article Already a member? Log in New York’s famed Strand Bookstore will reimburse nearly $1.5 million after improperly requesting and obtaining a pandemic-era small business loan despite being legally ineligible to receive the funds, the U.S. Department of Justice has announced. Federal prosecutors stated that the establishment was unqualified because its owner, Nancy Bass Wyden, is married to U.S. Sen. Ron Wyden, a Democrat from Oregon. The DOJ officially announced the settlement on Tuesday. In 2021, the Strand submitted an application for a $932,350 second draw Paycheck Protection Program loan, which required applicants to affirm that no member of Congress held a direct or indirect controlling stake in the enterprise. While the shop previously secured a PPP loan back in 2020, those relief funds did not mandate an identical conflict-of-interest declaration. "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 noted in a statement that during the COVID-19 pandemic, regulations governing federal relief programs "were changing rapidly" and explained that the bookstore remained unaware of eligibility rule modifications introduced between the times it submitted its first and second loan applications. "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." Inquiries sent to the Strand seeking comment went unanswered. A representative for the senator's office stated that the lawmaker and his spouse refrain from discussing her business affairs, adding he played no role regarding the loan or agreement. Famous for advertising "18 Miles of Books" across its shelving, the Strand remains an essential cornerstone of New York’s cultural scene and downtown heritage. The location features in diverse television series and major films, such as "Sex and the City," "Julie & Julia," and "Six Degrees of Separation," among others. Offerings span inexpensive secondhand paperbacks to valuable rare first editions, while serving as a prime setting for authors to give book talks. Benjamin Bass, the proprietor's grandfather, established the shop in 1927. She later managed the business alongside her father, Fred Bass, until he passed away in 2018. After coronavirus lockdowns upended retail operations, Bass Wyden issued an appeal to the public in October 2020 urging patrons to shop at the Strand in person or online. She stated in a social media post that "the loan we were given" had sustained the store for eight months, but revenues dropped 70% and the business was deemed "unsustainable." A viral #savethestrand campaign subsequently generated over 25,000 online purchases across a single weekend, Bass Wyden told The Washington Post at that time. Reporting by the Post showed she furloughed 188 of 217 staff members when lockdowns commenced in March 2020. She recalled 30 employees that June after securing a Paycheck Protection Program loan worth between $1 million and $2 million, before cutting 12 workers several weeks later. Meanwhile, friction intensified between her and the workers’ union, particularly after disclosures revealed she had purchased at least $115,000 worth of Amazon stock during the global health crisis. Join our commenting forum Join thought-provoking conversations, follow other Independent readers and see their replies Comments [Image text:] SABAND BOCKSTORE AR NEW STRAND BOOKSTORE 330 18 MILES OF BOOKS