The bill establishes the Distressed Institutions of Higher Education Revolving Loan Program, which will be administered by the State Treasurer of Alabama. This program is designed to provide financial assistance to eligible public or private colleges and universities in Alabama that have been operating for over 50 years, significantly impact their communities, and are facing financial hardships that could lead to closure. Eligible institutions must apply for loans, certifying their compliance with the criteria set forth in the bill, and the State Treasurer will review these applications to determine the ability to repay the loans. The bill also outlines the authority of the State Treasurer to set the terms and conditions of the loans, including interest rates and repayment schedules.

Additionally, the bill creates the Distressed Institutions of Higher Education Loan Program Fund within the State Treasury to receive legislative appropriations for loan funding and repayments. It mandates annual reporting by the State Treasurer on the program's operations, including loan issuance and repayment status, to various state officials. The bill specifies that no new loans may be authorized after January 18, 2027, but does not affect loans issued prior to that date. Any remaining funds in the program after this date will be transferred to the Education Trust Fund. The Attorney General is also empowered to recover any amounts due under the program, and the bill grants the State Treasurer necessary powers to execute contracts and agreements related to the program.