• BayFirst cuts 51 jobs and ends SBA loan program Bolt
• Move follows two straight quarters of financial losses
• Restructuring to save $6 million annually, with a charge in Q3
• Bolt issued $870 million in loans since 2022
• Older loans under stress due to low interest rate vintages
• Board suspends dividends, directors forgo board fees
• Bank will sell Bolt balances and origination platform
• Shift reflects focus on larger SBA loans and community banking
• Macroeconomic volatility cited as key driver behind retreat
• Strategic review triggered the pivot away from small-dollar lending

BayFirst National Bank, based in St. Petersburg, Florida, has laid off 51 employees and terminated its Bolt small-business lending program in a bid to cut costs and refocus its strategy. 

The decision follows two consecutive quarters of losses and comes amid mounting stress in the small-dollar lending space.

The move is expected to generate $6 million in annual savings. However, the bank will also incur a restructuring charge in the third quarter tied to the wind-down of Bolt, it said Monday. BayFirst did not disclose the exact amount of the charge.

Launched in 2022, Bolt was designed to provide Small Business Administration (SBA) 7(a) loans of up to $150,000. The program originated more than 6,700 loans totaling $870 million. But repayment issues, particularly among loans issued during periods of low interest rates, have now prompted the bank to exit the market entirely.

“The older ones, vintages that started at lower rates, definitely have had stress and are struggling to keep up with the payments,” said Robin Oliver, BayFirst’s president and chief operating officer, during a July 30 call with analysts.

BayFirst still plans to offer larger SBA loans, citing the stronger financial profiles and more sophisticated borrowers typically associated with that segment. “You have different types of borrowers, more sophistication in the financial statements, and things of that nature,” Oliver said.

The Bolt exit is the latest in a series of strategic shifts by the $1.34 billion-asset bank. BayFirst previously exited national mortgage lending in 2022 and now plans to “increase emphasis on community banking activities,” according to a statement released Monday.

The layoffs represent 17% of BayFirst’s total workforce. Of the 51 eliminated positions, 26 were directly tied to the Bolt program, while 25 were spread across other areas of the bank.

To help offset the restructuring cost, BayFirst’s board has suspended dividend payments, and directors have voluntarily forfeited their board fees. The bank also plans to sell its Bolt loan balances and origination platform.

CEO Thomas Zernick pointed to broader macroeconomic challenges affecting the small-business landscape. 

“Whether it’s uncertainty caused by the tariffs, cost-of-goods spikes, difficulty in employment – they’re struggling across the board,” he told American Banker. “Lending into the small-dollar space didn’t make sense, given the macroenvironment we’re in today.”

BayFirst lost $300,000 in the first quarter of 2025 and $1.2 million in the second. The bank is now exploring new revenue streams to replace Bolt. “We’ll model out all kinds of different scenarios to make the best decision to get us back on track,” Oliver said.

The decision to pull the plug on Bolt followed a “comprehensive strategic review” by the board and senior management, aimed at reducing risk tied to unguaranteed SBA 7(a) loans and positioning the company for sustainable growth.

“Our Board of Directors and leadership team are committed to driving innovation and resilience,” said Zernick. “We are confident that these efforts will better align the Company and our Bank with the demands of our rapidly changing banking landscape.”