AL SB31

Transfers administration of the Distressed Institutions of Higher Education Revolving Loan Program from the State Treasurer to the Executive Director of the Alabama Commission on Higher Education.

Restricts eligible institutions to public or private colleges and universities in Alabama that have operated for more than 50 years, demonstrate significant community impact, face financial hardship threatening closure, and have adopted a resolution authorizing the loan application.

Requires eligible institutions to provide an opinion letter from an Alabama-registered bank (not a current creditor) confirming sufficient collateral to secure the requested loan amount.

Establishes loan terms including interest at the State Revolving Loan Fund rate, 20-year repayment period, first perfected security interest in pledged assets, and 30-day approval deadline that cannot be extended.

Mandates annual reporting by the Alabama Commission on Higher Education to the Governor, legislature leadership, and relevant committees regarding all issued loans and repayment status.