Main Street Monday: The Bancorp Eliminates 64 Jobs as It Exits New Small Business Lending

September 14, 2026

Bob Coleman
Founder & Publisher

Main Street Monday: The Bancorp Eliminates 64 Jobs as It Exits New Small Business Lending

$1 Billion Small Business Lending Restructuring Expected to Produce $14 Million in Annual Savings

The Bancorp Bank is shutting down new Small Business Lending originations by the end of 2026 and eliminating 64 jobs, approximately 9% of its workforce.

The restructuring is expected to produce approximately $14 million in annualized savings.

The Bancorp ranked No. 41 nationally in SBA 7(a) dollar volume through June 30, approving 92 loans for $120.5 million during the first nine months of FY2026. Its average 7(a) loan was $1.31 million.

The Bancorp’s Small Business Lending portfolio totaled more than $1 billion at June 30.

The bank reported $1.034 billion of Small Business Lending loans held at amortized cost, including $757.2 million in commercial mortgages, $255.4 million in non-real-estate loans and $21.7 million in construction loans. The bank says its Small Business Lending portfolio is comprised primarily of SBA loans.

The Bancorp is not simply ending SBA 7(a) lending.

Its Small Business Lending operation includes SBA 7(a), SBA 504 and focused conventional lending with a national footprint. The bank said it will discontinue both retail and wholesale new Small Business Lending originations while continuing to service and manage its existing portfolio.

The Bancorp expects to incur approximately $5.6 million in restructuring charges, primarily for severance, employee benefits, outplacement services, retention payments and related costs. About $4.5 million is expected to be recognized in the third quarter.

The decision came quickly.

In a July investor presentation, The Bancorp listed Small Business Lending as one of its Credit Solutions businesses. Management said its strategy was to continue “steady growth and credit performance” and reported a 7.3% second-quarter yield.

Five weeks later, the bank announced it would stop originating new Small Business Lending loans.

The Bancorp says the restructuring is part of its Apex 2030 plan. Combined with an earlier restructuring of Institutional Banking, the two moves are expected to save more than $20 million annually.

Coming later today for Coleman Report subscribers: Why would the No. 41 SBA lender walk away from a $1 billion Small Business Lending portfolio just five weeks after telling investors it planned continued growth? The Bancorp’s investor presentation provides an answer in the economics of traditional lending versus its fintech business.