The Paycheck Protection Program was created to save American jobs, not to enrich those who aren’t

Strand Bookstore Agrees to Pay Nearly $1.5 Million Over Ineligible Covid Loan

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, U.S. Attorney Jeanine Pirro said, cnbc.com reported. The iconic New York City bookstore agreed to pay $1,482,560 to settle civil claims that it accepted a government Covid-19 loan that was legally off-limits because the store is owned by Nancy Bass Wyden, the wife of Oregon Democratic Senator Ron Wyden.

The Strand applied for the $932,350 loan in February 2021 through the Paycheck Protection Program administered by the Small Business Administration, according to the U.S. Attorney’s Office in Washington, D.C. On that application, Bass Wyden certified that the spouse of a member of Congress did not directly or indirectly hold a controlling interest in the applicant. Federal prosecutors stated that this certification was knowingly and materially false.

Congress Bars Lawmakers and Spouses from Second-Draw Loans

Congress originally authorized forgivable loans under the Coronavirus Aid, Relief, and Economic Security Act in March 2020 to help businesses retain employees during the public health emergency. In December 2020, lawmakers passed additional funding legislation that allowed eligible entities to apply for a second draw of funds. That legislation included a prohibition: businesses were barred from obtaining second-draw funds if a member of Congress or their spouse held a controlling interest in the applicant.

According to the Department of Justice release, the civil settlement resolves allegations brought under the qui tam or whistleblower provisions of the False Claims Act. A corporate entity named Blockquote Inc. filed the whistleblower lawsuit in U.S. District Court in Washington. Under the False Claims Act, private whistleblowers can sue on behalf of the government and receive a percentage of the recovered funds. Blockquote will receive a total share of approximately $148,256 from the settlement.

The Strand Calls the Loan Violation an Unintentional Mistake

The Strand did not admit liability in the settlement. In a public statement, the bookstore asserted that the violation was an unintentional mistake. The store explained that the restriction was enacted by Congress between the first and second rounds of the loan program, and neither the store’s accountant nor the administering bank was aware of the change when processing the second-draw application.

We stand by the facts: the circumstances arose during an unprecedented and rapidly changing public health emergency, the mistake was unintentional, the Strand stated. The bookstore added that it hopes the matter will be viewed objectively and fairly, free from political considerations. A spokesperson for Senator Wyden stated that the senator and his wife do not discuss her business affairs and that he had no involvement in the loan application or the resulting settlement.