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WHEDA Establishes Loan Guarantee Program Due to Propane Shortage
Friday, January 31st, 2014 -- 9:03 am
Posted by Riley Hebert-News Director

-In response to Governor Scott Walker's declaration of a State of Emergency due to Wisconsin's propane shortage, the Wisconsin Housing and Economic Development Authority has established a $3 million loan guarantee program.

WHEDA will provide loan guarantees to banks of 50-percent of a total loan for dealers to purchase propane, but not to exceed a $50,000 guarantee amount for a term of one year.

Qualifying propane dealers must be in business for at least 12 months and will be required to complete a simple compliance application through a participating WHEDA lender to access the loan guarantee. WHEDA's Propane Guarantee Program will be effective until December 31st of 2014.

Propane prices have jumped from about $1 dollar a gallon to nearly $6 dollars a gallon during the month. The jump in prices is being blamed on a severe shortage of propane caused by the wet fall resulting in feed farmers using unexpectedly high amounts of propane to dry crops. The unseasonably cold winter has also increased the demand for propane from homeowners. And more propane was exported this year because of increases in international demand.

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