The claim: FEMA loans money to disaster victims and takes their land if it’s not paid back
An Oct. 5 Facebook post (direct link, archive link) makes a claim about the Federal Emergency Management Agency, which helps victims of natural disasters.
“Do not sign any contract with FEMA,” reads the post. “Read the fine print they are giving you a loan. If you don’t pay it back they will take your land.”
It was shared more than 4,000 times in three days.
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Our rating: False
FEMA can’t seize property or land from people who apply for federal disaster assistance. The agency’s aid does not typically need to be paid back.
FEMA can’t seize land or property from disaster victims
Hurricane Helene left behind extensive flooding, power outages and property damage across the Southeast after making landfall Sept. 26 along Florida’s Gulf Coast. The death toll stood at 228 as of Oct. 5, and one analysis found the cost of the damage could be more than $30 billion, as USA TODAY previously reported.
In response, FEMA has been involved in recovery efforts, shipping meals, water and other supplies to areas affected by the storm. In an Oct. 6 news release, FEMA said people in certain areas of Florida, Georgia, North Carolina, South Carolina, Tennessee and Virginia could apply for federal assistance through the agency.
But FEMA doesn’t offer loans that allow it to take people’s land if the money isn’t paid back. The agency’s website says it “cannot seize your property or land.”
“Applying for disaster assistance does not grant FEMA or the federal government authority or ownership of your property or land,” its website says.
Fact check: AI behind image of flooded Gatlinburg, Tennessee, street after Helene
Financial assistance from the agency comes in the form of grants that typically do not have to be paid back, though there are some exceptions.
“If you have insurance that covers your temporary housing costs, but you ask FEMA to advance you some money to help you pay for those costs while your insurance is delayed, you will need to pay that money back to FEMA after you receive your insurance settlement,” the agency’s website says.
The U.S. Small Business Administration, a different federal agency, offers low-interest disaster loans for homeowners or small business owners to pay for losses not covered by insurance or FEMA.
USA TODAY has debunked other false claims about Hurricane Helene, including that President Joe Biden said he’s not giving any more aid to Hurricane Helene victims, that victims will receive “only $750” in aid and that an image shows former President Donald Trump wading through floodwaters after Hurricane Helene.
USA TODAY reached out to the social media user who shared the post for comment but did not immediately receive a response.
Our fact-check sources:
- FEMA, Oct. 6, Federal Assistance for Hurricane Helene Survivors Surpasses $137 Million as Biden-Harris Administration Continues Response and Recovery Efforts in Southeast and Closely Monitors Storm in the Gulf
- FEMA, accessed Oct. 7, Hurricane Helene: Rumor Response
- FEMA, Sept. 30, Myth vs. Fact: Disaster Assistance
- U.S. Small Business Administration, accessed Oct. 7, Disaster assistance
- USA TODAY, Oct. 5, Helene costs may top $30 billion; death toll increases again: Updates
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