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Help members with their heating bills with WHEDA-backed loans


Many Wisconsin families may still be struggling to pay their propane bills. Credit unions can help with a new guaranteed loan program.


The Wisconsin Housing and Economic Development Authority (WHEDA) has launched its Consumer Heating Assistance Guarantee Program (created by the Legislature as 2013 Act 175) to assist people who are having difficulty paying their propane bills due to this past winter’s high propane prices.


WHEDA-backed loans are available for 120 days following the law’s enactment on March 27, 2014, meaning qualifying persons can apply for this type of loan through July 25, 2014, to pay their propane bill.   


Here are the loan program basics (details can be found on the WHEDA website):

  • Loans are guaranteed for 50% of the amount


  • Terms cannot exceed two years


  • Maximum loan amount is $2,500


  • Interest rate is set by the lender (maximum 18%), and the Consumer Heating Assistance Guarantee Program will pay an additional 3.5% of the principal to reduce the interest rate by 3.5% or 1.75% for a one-year and  two-year note respectively.


  • Qualified applicants must:

    • Be Wisconsin residents

    • Have a household income no higher than 200 percent of the median income in their county

    • Be ineligible for conventional financing

    • Have a reasonable ability to repay the loan

    • Other conditions do apply (see website for details)


Credit unions that wish to make loans as part of the program must complete a master guarantee agreement for WHEDA’s Consumer Heating Assistance Guarantee Program and comply with the program guidelines. WHEDA’s website contains a current list of participating lenders.




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