<SUBMISSION>
<ACCESSION-NUMBER>0001079973-07-000325
<TYPE>4
<PUBLIC-DOCUMENT-COUNT>1
<PERIOD>20070123
<FILING-DATE>20070419
<DATE-OF-FILING-DATE-CHANGE>20070419
<ISSUER>
<COMPANY-DATA>
<CONFORMED-NAME>BIRCH BRANCH INC
<CIK>0000857872
<ASSIGNED-SIC>6532
<IRS-NUMBER>841124170
<STATE-OF-INCORPORATION>CO
<FISCAL-YEAR-END>0930
</COMPANY-DATA>
<BUSINESS-ADDRESS>
<STREET1>2560 W MAIN STREET
<STREET2>SUITE 200
<CITY>LITTLETON
<STATE>CO
<ZIP>80120
<PHONE>303-794-9450
</BUSINESS-ADDRESS>
<MAIL-ADDRESS>
<STREET1>2560 W MAIN STREET
<STREET2>SUITE 200
<CITY>LITTLETON
<STATE>CO
<ZIP>80120
</MAIL-ADDRESS>
</ISSUER>
<REPORTING-OWNER>
<OWNER-DATA>
<CONFORMED-NAME>Mathis Family Partners Ltd.
<CIK>0001299962
<STATE-OF-INCORPORATION>CO
<FISCAL-YEAR-END>1231
</OWNER-DATA>
<FILING-VALUES>
<FORM-TYPE>4
<ACT>34
<FILE-NUMBER>000-50936
<FILM-NUMBER>07774881
</FILING-VALUES>
<BUSINESS-ADDRESS>
<STREET1>2560 W. MAIN STREET, SUITE 200
<CITY>LITTLETON
<STATE>CO
<ZIP>80120
<PHONE>303-794-9450
</BUSINESS-ADDRESS>
<MAIL-ADDRESS>
<STREET1>2560 W. MAIN STREET, SUITE 200
<CITY>LITTLETON
<STATE>CO
<ZIP>80120
</MAIL-ADDRESS>
</REPORTING-OWNER>
<DOCUMENT>
<TYPE>4
<SEQUENCE>1
<FILENAME>bhbh_mathis-f4ex.xml
<TEXT>
<XML>
<?xml version="1.0"?>
<ownershipDocument>

    <schemaVersion>X0202</schemaVersion>

    <documentType>4</documentType>

    <periodOfReport>2007-01-23</periodOfReport>

    <notSubjectToSection16>0</notSubjectToSection16>

    <issuer>
        <issuerCik>0000857872</issuerCik>
        <issuerName>BIRCH BRANCH INC</issuerName>
        <issuerTradingSymbol>BHBH</issuerTradingSymbol>
    </issuer>

    <reportingOwner>
        <reportingOwnerId>
            <rptOwnerCik>0001299962</rptOwnerCik>
            <rptOwnerName>Mathis Family Partners Ltd.</rptOwnerName>
        </reportingOwnerId>
        <reportingOwnerAddress>
            <rptOwnerStreet1>2560 W. MAIN STREET, SUITE 200</rptOwnerStreet1>
            <rptOwnerStreet2></rptOwnerStreet2>
            <rptOwnerCity>LITTLETON</rptOwnerCity>
            <rptOwnerState>CO</rptOwnerState>
            <rptOwnerZipCode>80120</rptOwnerZipCode>
            <rptOwnerStateDescription></rptOwnerStateDescription>
        </reportingOwnerAddress>
        <reportingOwnerRelationship>
            <isDirector>1</isDirector>
            <isOfficer>1</isOfficer>
            <isTenPercentOwner>1</isTenPercentOwner>
            <isOther>0</isOther>
            <officerTitle>Chief Executive Officer *</officerTitle>
        </reportingOwnerRelationship>
    </reportingOwner>

    <nonDerivativeTable>
        <nonDerivativeTransaction>
            <securityTitle>
                <value>Common Stock</value>
            </securityTitle>
            <transactionDate>
                <value>2007-01-23</value>
            </transactionDate>
            <transactionCoding>
                <transactionFormType>4</transactionFormType>
                <transactionCode>J</transactionCode>
                <equitySwapInvolved>0</equitySwapInvolved>
                <footnoteId id="F1"/>
            </transactionCoding>
            <transactionAmounts>
                <transactionShares>
                    <value>962260</value>
                </transactionShares>
                <transactionPricePerShare>
                    <footnoteId id="F1"/>
                </transactionPricePerShare>
                <transactionAcquiredDisposedCode>
                    <value>A</value>
                </transactionAcquiredDisposedCode>
            </transactionAmounts>
            <postTransactionAmounts>
                <sharesOwnedFollowingTransaction>
                    <value>1152885</value>
                </sharesOwnedFollowingTransaction>
            </postTransactionAmounts>
            <ownershipNature>
                <directOrIndirectOwnership>
                    <value>D</value>
                </directOrIndirectOwnership>
            </ownershipNature>
        </nonDerivativeTransaction>
    </nonDerivativeTable>

    <footnotes>
        <footnote id="F1">Mathis Family Partners Ltd. received 962,260 shares of the Issuer's common stock in conjunction with and as a loan fee for a
 $250,000 credit facility provided to the Issuer.</footnote>
    </footnotes>

    <remarks>* Earnest Mathis, the General Partner of Mathis Family Partners Ltd., is also a director of the Issuer and its Chief
 Executive Officer.</remarks>

    <ownerSignature>
        <signatureName>/s/ Earnest Mathis, General Partner</signatureName>
        <signatureDate>2007-04-18</signatureDate>
    </ownerSignature>
</ownershipDocument>
</XML>
</TEXT>
</DOCUMENT>
</SUBMISSION>
