SB278 Summary

• Creates the Distressed Institutions of Higher Education Revolving Loan Program administered by the State Treasurer to provide loans to eligible colleges and universities experiencing financial hardship.

• Defines eligible institutions as public or private Alabama colleges/universities operating for more than 50 years with significant community impact, financial hardship threatening closure, governing body authorization, and sufficient assets for collateral.

• Authorizes the State Treasurer to establish loan terms including interest rates, disbursement schedules, repayment terms, and required private funding commitments prior to loan disbursement.

• Establishes the Distressed Institutions of Higher Education Loan Program Fund in the State Treasury to receive legislative appropriations; loan repayments deposit back into the fund, and unexpended funds carry forward annually.

• Requires annual reports to legislative leadership and state officials on all loans issued and repayment status; authorizes the Attorney General to pursue recovery of defaulted loans in Montgomery County courts; terminates new loan authorization after January 18, 2027.