Birmingham-Southern College to receive $5M in loans from The Magic City

The Magic City is coming to the aid of Birmingham-Southern College (BSC).

Today, the Birmingham City Council approved $5 million in loans to the college. This announcement comes two months after State Treasurer Young J. Boozer III refused to follow through on a loan program passed and signed into law by the Governor with the specific purpose of saving the financially strapped college. 

BSC is deeply grateful

“We are deeply grateful to the Birmingham City Council for approving this investment, and to Mayor Randall Woodfin for putting together the economic development package that not only documents our current value to the city, but also the value BSC will continue to bring as we build out our masters’ programs in data science, computer science, cybersecurity and information systems over the next four to five years.”

~President Daniel B. Coleman

The terms of the loans

The Council approved two separate loans.

• 1st loan —  $2.5 million loan at 10 percent interest that will be forgiven when the College opens in fall 2024.
• 2nd loan — $2.5 million loan to be repaid over 20 years at a 1 percent interest rate.

Thanks to the city’s commitment, an additional $2.5 million investment is coming to BSC from the United Methodist Church’s North Alabama Conference Board of Pension and Health Benefits. These funds were contingent upon the city’s participation of up to $5 million. 

More stakeholders needed 

“I think it is critical that the city, as one of the key stakeholders, is helping to save BSC.  I just hope other stakeholders will also do what is needed to save the important institution.”

~ Carol Clarke, Birmingham City Councilor

According to a recent independent economic study, BSC has a $97.2 million direct economic impact statewide. 

The loss of the college would be devastating to local neighborhoods, Mayor Randall Woodfin said at a recent committee meeting taking up the measure.

“Try to imagine the West End without Princeton…and we can look no further than Norwood to see what the loss of any institution (Carraway Hospital) in close proximity to the city means. This is the right thing to do, and it is something I stand on.”

BSC’s next steps

What’s next? Councilor Clarke is correct. With the support of the city and United Methodist Church BSC needs to enlist additional stakeholders to save the college. Who will that be? Stay tuned.

What do you think of the effort to support and save Birmingham-Southern College? Tell us what you think on social media by tagging us at @bhamnow.