BayFirst Financial Shuts Down SBA Loan Program Amid Surge in Bad Loans, Lays Off 51 Employees

Florida-based BayFirst Financial has terminated its Bolt loan program, which offered SBA-guaranteed working capital loans of up to $150,000. The decision comes after the bank reported a second consecutive quarterly loss and laid off 51 employees to produce $6 million in annual savings. The company hopes to sell its Bolt loan balances and the origination platform and will halt payment of dividends and forgo directors' fees.

Florida-based BayFirst Financial Corp. (NASDAQ: BAFN) has announced the discontinuation of its Bolt loan program, an SBA 7(a) loan product designed for small balance loans to small businesses, effective immediately. The move comes as part of a comprehensive strategic review aimed at positioning the company for long-term growth and enhanced shareholder value [1].

The Bolt loan program offered expedited working capital loans, but the decision to discontinue it is part of a broader effort to reduce risk from unguaranteed SBA 7(a) loans. As a result, BayFirst will lay off 51 employees, including 26 positions in the Bolt loan program and 25 in other areas, to save $6 million in annual costs [1].

BayFirst recorded charge-offs and fair value write-downs on high-risk SBA 7(a) loans during the second quarter of 2025 and expects to record a restructuring charge in the third quarter related to the exit of the Bolt loan program. The company plans to sell its Bolt loan balances and the origination platform to an unaffiliated third party. Additionally, the Board has suspended dividend payments, and Directors will forgo board fees to offset these impacts [1].

Chief Executive Officer Tom Zernick stated, "Our Board of Directors and leadership team are committed to driving innovation and resilience as we move forward into the next phase of our development. These efforts will allow us to focus our resources on building a premier community banking franchise and capitalizing on our strengths" [1].

BayFirst Financial Corp., a registered bank holding company based in St. Petersburg, Florida, operates twelve full-service banking offices throughout the Tampa Bay-Sarasota region and offers a broad range of commercial and consumer banking services. As of June 30, 2025, BayFirst Financial Corp. had $1.34 billion in total assets [1].

References:
[1] https://www.barchart.com/story/news/33865382/bayfirst-discontinues-bolt-sba-7a-loan-program