The bill introduced on Monday is scheduled for a hearing Wednesday before the Legislature's Joint Finance Committee.
Loans would be up to $2,500 per person to purchase propane or other heating supplies. The borrower's household income could not exceed 200 percent of the median household income of their county.
Republican sponsors say it would help middle class propane users who don't qualify for low income assistance through another program would be targeted.
Gov. Scott Walker last month declared a state of emergency due to the propane shortage and established a $3 million loan guarantee program to help propane dealers.