BayFirst Financial Corp. announced the immediate discontinuation of its Bolt loan program, an SBA 7(a) loan product designed for small balance working capital loans. This decision is part of a comprehensive strategic review aimed at reducing risk from unguaranteed SBA 7(a) loans and positioning the company for long-term growth. The company will also seek offers to sell the Bolt loan balances and its origination platform.
In conjunction with this strategic shift, BayFirst announced a reduction in force of 51 positions, comprising 26 Bolt-related roles and 25 positions in other areas of the Bank, representing 17% of its workforce. This measure is expected to generate $6 million in annual cost savings. The company recorded charge-offs and fair value write-downs on high-risk SBA 7(a) loans during the second quarter of 2025 and anticipates a restructuring charge in the third quarter.
To further conserve capital and strengthen the balance sheet, the Board of Directors has suspended all dividend payments for common and preferred stock, and Directors will forgo board fees. This decisive action underscores the company's commitment to de-risking its balance sheet and refocusing resources on building its community banking franchise in the Tampa Bay region.
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