Can't open PO because of bad loan type

In the Chalmers environment, a user creates a PO and chooses to create Instance, holdings, and items in the physical resource details.
The users wants to Open the order.
Expected result: the order is opened and the status changes to open.
Actual result: the order cannot be opened and an error message appears. "Order can not be opened as a loan type was not configured in orders settings or the configured type Can circulate no longer exists"
To log into the Chalmers environment, go to Chalmers.folio.ebsco.com login slacked to Ann-Marie

In the Snapshot stable environment, the user creates the PO and chooses to create instance holdings and items in the physical resource details.
The users wants to Open the order.
Expected result: the order is opened and the status changes to open.
Actual result: the order cannot be opened and this error message appears: Order could not be saved. It is in a light red alarm "toast" box. It does not stay on the screen long enough for me to get a picture of it.

See Rally ticket: https://rally1.rallydev.com/#/79944863724d/detail/userstory/ba0442b8-d819-485c-9fff-5d64f192e5db - blocking this until the Rally ticket is closed.