Gov. Kay Ivey has one day left to approve a new program that could save Birmingham-Southern College and other struggling Alabama schools.

The legislature approved a final version of a bill to create a loan program, including an amendment from the governor, on June 6. The program would allow public and private colleges at risk of closure to apply for funding through 2027.

According to the Legislative Services Agency, Ivey has until June 16 to sign the bill, or else it will be “pocket vetoed.” In March, Ivey said she didn’t intend to support state funds for the college, but legislators still moved forward with a bailout plan.

Lawmakers designated up to $30 million for the program – enough to get Birmingham-Southern College back on its feet.

Since the college made its financial struggles public in the winter, campus leaders, alumni and local officials have waged a battle to find funding. In April, the school said it had fundraised enough money to stay open. The college has said that funding from the state should help the school stay open and continue serving students.

Read more: Birmingham-Southern College will remain open, ‘moving forward’ to next school year

“I am delighted to convey sincere thanks on behalf of the BSC community to everyone who became an advocate for the College, including many in legislative leadership who understood the contributions BSC makes to the economic and educational health of the state and its citizens,” President Daniel Coleman said when the House and Senate approved the bill.

“We are especially grateful to Sen. Jabo Waggoner ‘60, Sen. Rodger Smitherman, and Rep. Juandalynn Givan,” Coleman said, in a news release. “Their leadership and commitment to ensuring that BSC be given an opportunity to endure made a significant difference in this effort.”

Officials say the college has secured nearly $46 million of its $200 million goal, and has sought additional bridge funding from public sources to allow time to finish that campaign. Their next step, the college said Tuesday, is to work with the state treasurer on a loan agreement, and continue to work with city and county officials to secure local funding.

Judson College President Daphne Robinson told AL.com the private women’s college in Marion, which halted classes in 2021, is also considering its options.

In order to apply for the loan, colleges must meet the following criteria:

• The college must have been in operation for more than 50 years in Alabama
• Have a significant impact on the local community
• Be at risk of closure due to financial hardship
• Must maintain operations and have a plan to fundraise as it receives the loan
• Have assets that it can pledge as collateral if it is unable to pay back the loan

Ivey’s amendment also requires applicants to submit a written financial plan documenting their ability to repay the loan. Recipients will also be required to pay interest on loans, and will not receive funds if they can’t prove that they have taken steps toward “financial soundness.”

“I have previously said that taxpayers’ public funds should not be used to bail out a private college, and I remained concerned about the wisdom and propriety of this program,” Ivey said in a June 1 letter outlining the changes. “However, if Senate Bill 278 is to become law, adoption of the above-proposed executive amendment will enhance the integrity of the loan program in the name of protecting taxpayer funds.”

The loan program will sunset after the current term of the state treasurer ends, unless lawmakers vote to extend the program.