Strand Bookstore Inc. has agreed to pay about $1.5 million to settle claims involving pandemic relief funds.

Officials say the business violated the False Claims Act by improperly applying for and receiving a second draw loan under the Paycheck Protection Program. The loan was for $932,350.

The business was not eligible to receive the funding because owner Nancy Bass Wyden is the wife of Sen. Ron Wyden (D-OR).

Federal law bars any businesses controlled by a member of Congress or their spouse from receiving those loans.

Strand’s owners say they did not know about the restriction and returned the money.