BayFirst Financial Corp., the St. Petersburg-based parent company of BayFirst Bank, is making headlines after announcing a major strategic shift that includes ending its Bolt SBA 7(a) loan program, laying off 51 employees, and suspending shareholder dividends.
The move marks the end of an initiative that was once promoted as a fast-track SBA lending option for small businesses, but ultimately became too costly to sustain.
What Was the Bolt SBA Loan Program?
The Bolt SBA 7(a) program was designed to approve and fund smaller SBA loans — generally under $150,000 — much faster than traditional processes. By targeting small-dollar loans, BayFirst aimed to capture a segment of the market underserved by larger banks.
For business owners, Bolt was attractive because it meant faster approvals, less paperwork, and a quicker path to funding. But for BayFirst, the economics were tough.
Why BayFirst Is Pulling the Plug
BayFirst reported $1.5 million in losses in the first half of 2025 tied to the program. Additional loan charge-offs and fair-value write-downs in the second quarter compounded the problem.
Small-dollar SBA loans can be riskier for lenders. Margins are slim, and any increase in defaults can quickly turn profitability into loss. In a statement, BayFirst CEO Anthony Leo acknowledged the decision was difficult but necessary to “protect the long-term stability of the bank and deliver value to shareholders.”
Impact on Jobs and Operations
The shutdown isn’t just affecting borrowers — it’s hitting employees hard. BayFirst will eliminate 51 jobs, representing 17% of its workforce.
- 26 positions were tied directly to the Bolt program
- 25 positions were eliminated in other parts of the organization
The bank estimates this will save roughly $6 million annually. In addition, board members will forgo their fees for the rest of the year, and the quarterly dividend has been suspended to preserve capital.
Exploring a Sale of Bolt Assets
BayFirst isn’t simply walking away from Bolt without trying to recover value. The bank is exploring the sale of the Bolt loan portfolio and origination platform to third parties.
This move could bring in immediate cash while allowing another lender — possibly one more specialized in small-dollar SBA loans — to take over the portfolio.
Refocusing on Core Banking Strengths
With Bolt gone, BayFirst plans to put more resources into its community banking network across the Tampa Bay area. This includes 12 branch offices and a renewed emphasis on larger SBA 7(a) loans, which typically involve more established borrowers and carry less default risk.
The shift is designed to play to BayFirst’s strengths: strong local relationships, a stable deposit base, and experience in traditional SBA lending.
Industry Context: The Challenge of Small-Dollar SBA Loans
BayFirst’s decision isn’t happening in a vacuum. Across the industry, lenders have struggled to make smaller SBA loans profitable. While borrower demand is high, the operational costs and risk of default often outweigh the revenue generated.
Some lenders have exited the space entirely, while others have tightened underwriting standards or shifted focus to higher-value loans. BayFirst’s move reinforces a growing trend toward selective lending and risk mitigation.
What This Means for Small Business Owners
For small business owners who relied on Bolt or similar programs, the change could mean fewer fast-track options for under-$150,000 SBA loans.
However, larger SBA 7(a) loans remain available, and BayFirst has indicated it will continue to serve the small business community — just with a different approach. Borrowers may now need to work with SBA lenders that specialize in small-dollar loans or seek alternative financing options such as:
- Community development financial institutions (CDFIs)
- Online small business lenders
- Local credit unions with SBA programs
A Strategic Reset for BayFirst
BayFirst’s restructuring is a classic case of a bank cutting its losses and refocusing on profitable, sustainable business lines. In the words of CEO Anthony Leo, the decision is “about positioning BayFirst for long-term success, even if it means making tough calls in the short term.”
While the layoffs and program shutdown are significant, the bank’s leadership believes this reset will leave BayFirst stronger, leaner, and better positioned to navigate today’s competitive banking environment.
Key Takeaways
- Bolt SBA 7(a) program discontinued due to rising losses
- 51 jobs cut, saving an estimated $6 million annually
- Dividend payments suspended, board fees waived for remainder of the year
- Focus shifts to larger SBA loans and community banking in Tampa Bay
- Bolt loan portfolio may be sold to recover value
BayFirst’s exit from the Bolt program may be disappointing for some borrowers and employees, but it reflects a broader reality in the banking sector: when a product isn’t delivering sustainable results, even well-intentioned programs must be reevaluated.
In the long run, this pivot could solidify BayFirst’s role as a stable community bank while still keeping a hand in SBA lending — just in a way that better balances risk and reward.
If you had your loan canceled at the last minute, please reach out. We work with a network of banks nationwide to help you get your loan back on track.
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