St. Pete bank to sell $103M in small business loans to Miami company

BayFirst Financial Corp., the St. Petersburg-based parent company of BayFirst National Bank, announced Monday it plans to sell an estimated $103 million in SBA 7(a) loan balances to Banesco USA. 

The move, part of what BayFirst’s efforts to “de-risk” its balance sheet., comes some two months after it sent a notice to state officials that it was laying off 52 people in in its SBA program. The sale to Banesco USA is expected to close in the fourth quarter of the year, the announcement says. 

A “majority” of BayFirst’s SBA lending staff and support teams will be offered positions with Banesco USA, the announcement says. 

As part of the signed agreement, Banesco USA will also purchase the servicing rights for the purchased loans and will continue servicing all of BayFirst’s SBA loans on its own. 

Miami-based Banesco USA has more than $5 billion in assets and eight locations across South Florida and Puerto Rico. According to the announcement, Banesco USA hopes the sale will be the first step in its efforts to expand its small business lending capabilities nationally. 

“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,” President and CEO of Banesco USA Calixto Garcia-Velez says in the announcement. “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.”

The loans will be sold to Banesco USA at 97% of retained balances, the announcement says, Benesco will also purchase the servicing rights associated with the loans and conduct all servicing for the SBA loans that BayFirst will continue to own. 

BayFirst Financial Corp CEO Thomas G. Zernick says Monday’s announcement marks “a significant milestone” in the company’s efforts to transition away from the SBA lending business. 

“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,” Zernick says in the announcement. “This relationship-driven approach continues to strengthen our presence across the vibrant Tampa Bay region and expands opportunities to expand our community bank portfolio, deposit growth and fee income sources like treasury management services.”

BayFirst National Bank currently operates twelve full-service banking offices throughout the Tampa Bay-Sarasota region, the announcement says. As of June 30, 2025, BayFirst Financial Corp. had $1.34 billion in total assets.