The Alabama State Treasurer's Office is now accepting applications for the Distressed Institutions of Higher Education Revolving Loan Program.
State Treasurer Young Boozer said last week he had requested an opinion from the Alabama Attorney General's Office about the constitutionality of the loan program recently passed by the legislature.
Legislators appropriated $30 million for the program in the Education Trust Fund supplemental bill passed in the 2023 regular session. To be eligible, the college must have operated in the state for over 50 years, be experiencing financial hardship that could lead to the institution's closure and have assets sufficient to pledge as collateral. While not limited to one university, the loan program was inspired by the beleaguered Birmingham-Southern College.
"We have been developing the application and procedures to administer this program. In addition, we have sought an Opinion of the Attorney General on the constitutionality of such a loan program," Boozer said in a statement last week. "Once we have received the Opinion, we plan to proceed as expeditiously as we can, taking into account the findings of the Attorney General's Opinion. We will make more information available about the program on the State Treasurer's website."
Boozer said Thursday, "We are in receipt of a response from the Attorney General and are opening this Program as defined by ACT 2023-278."
According to the program's website, no guarantee is made that proceeds for loans will be available or that any applicant will receive any loan proceeds from the Fund, and the Treasurer reserves the right to deny any or all applications.
To connect with the author of this story or to comment, email caleb.taylor@1819News.com.
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