FEMA vs SBA: Know Your Disaster Aid Options
Hey everybody, thank you for joining me today. I’m finally getting back on track. Yesterday, I published my first YouTube video in a long time. Unfortunately, I had COVID during the first couple of weeks of September, and then towards the end of that, Hurricane Helene came and destroyed my area, leaving us without power for thirteen days. But that’s what this blog post/podcast will focus on: information about FEMA and comparing it to SBA loans, home insurance, and Hurricane Helene and Hurricane Milton. This blog will help dispel some of the myths and disinformation that is being spread.
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Because of that, I suggest you check out the video I did yesterday. It focuses on the issue of what we call “acts of God” in the law. This includes situations like your cell phone provider not allowing you to extend payments because you haven’t had power and are going through difficult times financially.
In my case, the video focused more on my satellite internet provider. I have six weeks left on the contract, and they didn’t want to cancel it. I go into detail on how you can cancel such contracts. I’ll put the link at the bottom.
What is FEMA?
For those of you who are victims of Hurricane Milton and Hurricane Helene, like I was, it’s essential to know how to protect yourself financially. That’s why today’s topic is FEMA.
One thing I can’t stand is disinformation or misinformation. It’s much easier to lie today than ever, especially online. These things go viral, and the truth gets twisted. Bad actors, often from other countries, are at play, spreading this misinformation. When it’s not, then it’s just ignorance.
I recommend you look up the bipartisan Senate report (see link below) from Senator Richard Ward and Senator Marco Rubio from a few years ago. They documented how countries like Russia, through the Internet Research Agency, create and spread disinformation. This is well-documented by the U.S. Senate Intelligence Committee.
With that said, we have this issue with FEMA and all the lies being spread. I usually avoid politics, but the reality is that President Trump is spreading these lies about FEMA. The claim that the $750 is all you will get is false. FEMA has come out multiple times to clarify this. The idea that you will lose your home because of FEMA is also not true.
Federal Emergency Management Agency (FEMA)
FEMA stands for Federal Emergency Management Agency. FEMA provides grants and financial assistance when it comes to natural disasters such as Hurricane Helene and Hurricane Milton. How do I know? Because I went through Hurricane Katrina and Wilma. Back then, I was without power for 28 days. FEMA came to my house and gave me a check to buy a generator. The representative from FEMA even said to go to Lowe’s because they had plenty of inventory.
FEMA is not the SBA (Small Business Administration), and that’s where people get confused. The SBA provides disaster relief loans. When you apply for FEMA, you might get an email from the SBA saying you might qualify for a disaster loan. That loan can cover what your insurance doesn’t. You can read more about SBA disaster loans via this link.
Filing Home Insurance Claims Due to Hurricane Helene and Hurricane Milton
Now, the fact is that insurance companies often deny claims, so you might need an adjuster or lawyer to help out. The scams with insurance companies are straightforward.
They deny claims. It’s the norm. You can’t live in a house that’s falling apart because of the hurricane, so you move to another home, but you can’t afford to pay rent and a mortgage. You let the house go into foreclosure, and guess what? You file for bankruptcy, and the insurance company never pays you. I know that game because they played it with me.
Home insurance companies will likely deny plenty of claims from Hurricane Helene and Hurricane Milton. By the way, if you hear trucks going by, this is usually a quiet area, but thousands of trucks here are picking up debris and installing new electrical poles. So now there’s traffic all over my neighborhood.
What is an SBA Disaster Loan
With the SBA they will offer you a loan. It’s clear that it’s a loan, and if you own a home, they will put a lien on it. It’s a second mortgage, no different than what Wells Fargo or any other lender would give you. If you don’t pay your second mortgage, they foreclose on you. If you don’t pay the SBA, they will also foreclose on you because that happens when you have a mortgage on your property. The same way a lender will take your car if you don’t pay for it. That’s just the way it works—simple creditor-debtor law.
Now, let’s be clear. President Trump has been saying they’re going to take away your home. I’ve read articles about one family who said their father refused help because he thought FEMA was going to take his home. FEMA doesn’t take homes. It’s like a grant. You ask for help, they assist you, and they move on. $750 is also the minimum. You may qualify for more.
If you don’t have a home, they’ll still give you the loan, but they will sue you and garnish your wages if you don’t pay. Every creditor does that.
If your car gets repossessed, they will garnish your wages to get paid or put a lien on your home. It’s just creditor-debtor law. So that’s the difference. Let’s not confuse the SBA with FEMA. They are two completely different organizations that serve different purposes.
Likewise, FEMA cannot start writing checks to ICE and immigration to transfer those funds to immigrants or towards the border. They don’t have that authority. This is the federal government, which is infamous for its bureaucracy.
Can FEMA just cut a check and say, “Let’s put this money towards something else”? No, because legally, they can’t. They don’t even have that authority. FEMA has to focus on FEMA-related issues, like natural disasters. It couldn’t be simpler.
Misinformation Leads to Lack of FEMA Assistance for Some
I saw the other day, which is sad, that a group of Republicans, including Matt Gaetz from Florida, voted against funding FEMA. Yet, he’s on his podcast, speaking publicly about how FEMA needs to pony up some money. He was the guy who said, Let’s cut back on their funding and even voted against additional funding. Now that his state has been hit hard, he wants funding. This is the hypocrisy and the danger of people not asking for help or FEMA assistance because they’re being lied to.
I will be the first to tell you I have YouTube videos focusing on finances, bankruptcy, mortgages, etc. This is all part of that. I’ve been a victim of Hurricane Helene and way too many other hurricanes, and I’ll be the first to say, don’t just guide yourself by what I tell you. Look into it yourself. Do your research.
Look it up if I tell you that you can do something in a bankruptcy case. Talk to multiple lawyers and confirm what I’m saying. I’m here to provide you with information, but you should speak with a lawyer in your area to confirm that everything I’m saying is true. I can’t be more honest.
What you shouldn’t do is spend more time researching your next cruise or vacation than something as important as this. Even if it’s politics, don’t spend ten seconds researching from non-credible sources and then an hour and a half researching what hotel to stay at in Miami. That is absurd and illogical.
Focus on credible websites like the FEMA website to see what they offer. FEMA is spending time, money, and energy to combat disinformation because its funds are being politicized. It’s ridiculous. There are people whose homes have been destroyed, who have nowhere to go, and who are afraid to ask FEMA for money because they think FEMA will take their houses. So let me make myself clear again: FEMA doesn’t provide loans, the SBA does. A grant legally cannot result in debt collection and enforcement. That is not the way the law works.
If you apply for FEMA, you will get an email saying you could qualify for a disaster loan. Yes, the SBA will put a lien on your house because that’s what second mortgages are. If you don’t pay, they will foreclose on you. Again, it’s simple creditor-debtor law, which I consider myself an expert on.
When you don’t pay a creditor, you get sued. That’s just the way it works. FEMA doesn’t do that; the SBA does. Whether you should get an SBA loan or not is up to you. Do your research. You might get $10,000 or $20,000 to fix your roof because your insurance company is playing games.
Dealing with Home Insurance Claims
Insurance companies love collecting their money, but are slow to send it back. They might be quick for something simple like car damage, but for a big check for your home, they tend to shuffle their feet. Of course, if you don’t pay, see how fast they cancel your policy. They’re even canceling policies in Florida right before hurricanes. How that’s legally possible, I don’t know.
But again, do your research. Don’t just take my word for it. Go to the FEMA website and see it for yourself. If you need help, ask for it. FEMA is not going to take away your home. Maybe you qualify for the $750; perhaps you don’t. Not everyone qualifies, but you might be eligible for more.
If you get an SBA loan, understand that it works like a second mortgage. Stop paying a mortgage or a home equity line of credit (HELOC), and trust me, the lender will proceed to foreclose on the property.
Being Informed. Know Your Rights
This disinformation campaign is BS, and whether it’s bots, politicians, or people easily misinformed, go straight to the source. Call FEMA and ask. You can record the conversation if you want; just ask so there are no legal issues. I’m sure FEMA is recording what you are saying.
Now, if FEMA forecloses on you, you could have a multi-million dollar lawsuit, considering they did something they don’t have the legal authority to do. But that’s not going to happen because FEMA doesn’t provide loans, nor do they foreclose on homes. To put it simply, it’s a legal impossibility. It’s legal fiction.
Be safe and do your research. My heart goes out to everyone in Florida. I’ve been through more hurricanes than I want to admit. I went through Hurricane Helene and avoided Hurricane Milton. I have friends and family who weren’t so lucky. I received text messages earlier from a friend who had severe damage to his home. My home avoided damage (I can’t say the same for my wife’s car or our camper), but today, someone is cutting down two pine trees that are too close to the house. Of course, like most victims of natural disasters, there are issues with price gouging.
If there’s price gouging, report it. Don’t put up with it. Try to hire local companies. When companies come from out of state, they’re often price-gouging. If something goes wrong, how are you going to chase them? They’re in another state and might close their business and open under a new name, and you’ll never know. So a lawsuit is pointless.
But if you hire someone locally to chop down a tree and something goes wrong, you can leave negative reviews on social media. Of course, even file a lawsuit. A local business is most likely going to treat you differently than an out-of-state business that is here only to cash in on the disaster and, unfortunately, prey on people when they are at their most vulnerable.
In my case, multiple companies wanted $2,000 to $3,000 to remove my trees, but a local company is doing it for $1,000, which I think is reasonable. I didn’t even negotiate. Out-of-town companies often charge astronomical prices, so keep that in mind.
Now, go to the FEMA website and apply. If you need more money, you can also apply for an SBA disaster loan.
Be safe and stay informed. Take care, everyone. Be safe.
Updated Information: The future of FEMA is unknown. The Trump Administration recently denied an extension to the state of North Carolina to apply for benefits due to damages caused by Hurricane Helen. A few weeks after tornadoes ripped through Arkansas, Governor Sarah Huckabee Sanders was also denied FEMA assistance. The current budget proposed by Republicans has zero funds set aside for FEMA.
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This transcript was edited for clarity.
Updated on May 3, 2025.
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