Birmingham-Southern College Statement Following Birmingham City Council Approves Loan

Birmingham, AL (11/28/2023) — The Birmingham City Council approved an economic development package today for Birmingham-Southern College that will help fund operations while the College continues to secure funds for the long-term.

The Council approved a $2.5 million loan at 10 percent interest that will be forgiven when the College opens in fall 2024, and another $2.5 million loan to be repaid over 20 years at a 1 percent interest rate.

"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," said President Daniel B. Coleman.

"For more than 100 years, BSC has educated leaders in business, health care, law, government, education, the arts, ministry, non-profits, and community life," he added. "That remains our core mission - preparing young people for lives of significance. The addition of these masters' programs is the next step in expanding BSC's ability to supply critically needed, high-skilled leaders to companies in Birmingham and Alabama that will fuel growth. We thank the Council and the mayor for sharing this vision."

The city's commitment initiates an additional $2.5 million investment from the United Methodist Church's North Alabama Conference Board of Pension and Health Benefits, which was announced on Nov. 9 and was contingent upon the city's participation of up to $5 million.

"These funds provide us the time we need as we continue to work with elected officials to obtain the bridge funding that has already been set aside by the Alabama Legislature, and to continue to secure endowment funding from private sources," Coleman said.

He further noted that beginning with the fall 2024 term, BSC will award up to three full-tuition scholarships annually to graduating seniors of Birmingham City Schools who have applied and been accepted prior to the published application dates. The scholarships are designed to support high-achieving graduates of Birmingham City Schools. When paired with eligible state and federal grants, tuition for these students will be fully funded.

In presenting the plan to the Council's Committee of the Whole on Nov. 21, Woodfin highlighted the College's economic impact on the city, measured at $7.5 million each year, as well as its presence as an anchor to the western side of Birmingham. "Birmingham-Southern is the only private, four-year college in the city limits, and provides an educational option that would otherwise not be available.

"Try to imagine the West End without Princeton," he added, "and we can look no further than Norwood to see what the loss of any institution in close proximity to the city means. This is the right thing to do, and it is something I stand on."