BayFirst Financial Shifts Strategy with SBA Loan Program Changes

Author: Owen Jenkins Updated: 08-04-2025 04:01 PM

BayFirst Financial Announces Strategic Changes

BayFirst Financial Corp. (NASDAQ: BAFN), known for its community banking approach, recently made a significant move by discontinuing its Bolt SBA 7(a) loan program. This decision reflects a broader strategy aimed at strengthening its market position and enhancing long-term shareholder value.

Details of the Program Discontinuation

The Bolt loan program, designed to assist small businesses with working capital, has been officially discontinued, effective immediately. Management carefully assessed the program as part of a comprehensive review to reduce risks associated with unguaranteed SBA loans. This decision echoes a commitment to ensuring the company's long-term viability amidst changing economic conditions.

Leadership Insights

Tom Zernick, the Chief Executive Officer of BayFirst, stated that this strategic shift comes as part of an effort to align resources more effectively. The discontinuation of the Bolt loan program will result in layoffs, affecting approximately 26 positions in the Bolt segment, along with an additional 25 roles across other areas of the bank. This move is expected to yield significant annual cost savings of around $6 million, equating to 17% of the workforce.

Future Plans and Community Focus

The focus is now set on improving their core SBA offerings and ensuring adaptation to shifting market dynamics. By emphasizing its community banking initiatives, BayFirst aims to strengthen its presence in Florida's banking sector through its twelve banking centers. Zernick emphasized the bank's commitment to building a resilient franchise devoted to serving its customers and stakeholders effectively.

Company Overview

Founded in 2000, BayFirst Financial Corp. is headquartered in St. Petersburg, Florida. The bank operates as a trusted financial partner, providing a range of services to both individuals and businesses. The organization has been recognized as one of the significant players in the SBA lending space, previously positioned as the 8th largest SBA 7(a) lender by units and 18th in dollar volume nationwide. As of mid-2025, the company reported total assets of $1.34 billion, indicating robust operational strength in its market.

Commitment to Innovation

BayFirst remains steadfast in its commitment to innovative banking solutions and strategic initiatives. These adjustments are part of a wider strategy to ensure the bank thrives in a rapidly altering financial landscape. The leadership team’s dedication to enhancing the community banking experience illustrates BayFirst's proactive approach to navigating challenges while offering high-quality services tailored to customer needs.

Frequently Asked Questions

What was the Bolt loan program?

The Bolt loan program offered expedited SBA 7(a) loans to small businesses, primarily for working capital. It has been discontinued to focus on community banking efforts.

Why did BayFirst discontinue the program?

BayFirst aimed to reduce risks and reposition itself for long-term growth by discontinuing the program as part of a broader strategic review.

What are the financial implications of this decision?

The discontinuation will result in significant cost savings and a reduction in workforce, which is expected to save the company around $6 million annually.

How does BayFirst plan to adapt to market changes?

The bank is focusing on improving its core SBA offerings and enhancing its community banking activities in Florida to better align with market demands.

What is the current standing of BayFirst in the banking sector?

BayFirst Financial Corp. is recognized as a significant player in the SBA lending market, with substantial assets and a commitment to community services in Florida.

About The Author

Hi there I'm 38-year-old author and financial consultant Owen Jenkins. Having worked in the financial sector for more than ten years, I am well-versed in the subtleties and complexity that mold our financial environment. Following a degree in finance, I worked in a number of financial institutions honing my abilities in market analysis, financial planning, and investment strategies.

My love is teaching others about investing and personal finance. My goal in writing many books and articles has been to demystify financial ideas and give readers the information they need to make wise financial decisions. I write with a direct, useful style that emphasizes doable suggestions for daily living.

Along with writing, I lead webinars and seminars where I impart knowledge on how to successfully negotiate the financial world. I also write for financial journals and show up as a guest expert on financial news programs a lot. Whether they are new to investing or want to improve their approach, my mission is to enable people to take charge of their financial futures.

Beyond work, I like to hike, play the guitar, and spend time with my family. I think that balance is crucial and want to encourage people to strike a balance between their financial aspirations and their hobbies. I want to help people succeed and achieve financial security through my work, so having a good influence.

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