Wesley College has been approved for up to $3 million from the state of Delaware to help the institution until it merges with another college.
The state Office of Management and Budget said although it was a difficult decision for the legislative committee the economic impact on the city of Dover was a consideration.
The Salisbury Daily Times reports that closing the college would have resulted in the loss of 200 jobs and 19 vacant buildings in downtown Dover.
There are conditions including weekly written updates on a merger with another institution and that plan to graduate 200 students this spring.