BayFirst Financial, 20th Largest SBA 7(a) Lender Exits Program

October 7, 2025

Bob Coleman
Founder & Publisher, Coleman Report

BayFirst Financial, 20th Largest SBA 7(a) Lender Exits Program

BayFirst National Bank currently ranked 20th among SBA 7(a) lenders nationally, has announced its decision to exit the SBA 7(a) lending business as part of a strategic effort to “derisk SBA 7(a) balances on the balance sheet and position the Company for long-term growth and enhanced shareholder value,” says CEO Thomas G. Zernick.

Through August 31, 2025, eleven months into fiscal year 2025, BayFirst ranks 20th with 1,940 loans totaling $332 million.

The company has signed a definitive agreement to sell $103 million of SBA 7(a) loan balances to Banesco USA, a Florida state-chartered bank with more than $5 billion in assets and eight locations across South Florida and Puerto Rico.

Under the agreement, Banesco USA will acquire the loans at 97 percent of retained balances and will assume servicing responsibilities for the portfolio. In addition, Banesco will purchase the servicing rights for the transferred loans and manage all remaining SBA loans that BayFirst continues to own.

“While we are transitioning away from SBA 7(a) lending, I am pleased that our highly experienced team will continue to support SBA lending at Banesco USA,” says Zernick.

Zernick emphasized that BayFirst remains focused on its community banking mission. “We remain deeply committed to our community bank mission — serving individuals, families, and small businesses with stable checking and savings products that contribute to a more predictable, low-cost funding base,” he says. Banesco USA is positioning the acquisition as a major expansion of its small business lending platform.

“Through the addition of BayFirst’s SBA lending team and the acquisition of a portfolio of SBA 7(a) loans, Banesco USA gains the infrastructure, expertise, and enhanced capabilities to deliver SBA lending on a national scale,” says Cali Garcia-Velez, President and CEO of Banesco USA. “As a business bank, we recognize that small businesses are the backbone of our economy, and this transaction aligns with our growth strategy to expand our small business lending capabilities. By acquiring this SBA 7(a) lending business and its experienced team of SBA lending professionals, we are also establishing a presence in the Greater Tampa Bay region while positioning Banesco USA to serve more small and mid-size companies across Florida and nationally.”