MADISON, Wis. (4/25/14)--Through a new guaranteed loan program, Wisconsin credit unions can help families struggling to pay their propane bills, the Wisconsin Credit Union League reported Thursday.
The Wisconsin Housing and Economic Development Authority (WHEDA) has launched its Consumer Heating Assistance Guarantee Program to assist state residents who are having difficulty paying their propane bills due to this past winter's high propane prices (
The League News
WHEDA-backed loans are available for 120 days following the law's March 27 enactment. Those who qualify can apply for loans through July 25.
Loans are guaranteed for 50% of the amount, and terms cannot exceed two years. The maximum loan amount is $2,500. The interest rate is set by the lender, with rates capped at 18%.
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% of the median income in their county;
- Be ineligible for conventional financing; and
- Have a reasonable ability to repay the loan.
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.