BayFirst Financial Review

SBA 7(a) Loan

BayFirst Financial has a reputation as an outstanding lender of SBA loans. These loans are backed by the U.S. Small Business Association, which removes some of the risk for lenders. The result is that small business owners get access to competitive rates to help grow sustainable businesses over the long term. For these reasons an SBA business loan is definitely a contender among the best business loans out there.

Evaluation

BayFirst Financial is an established business lender focusing on SBA 7(a) loans. They offer moderate loan amounts and as a preferred lender, can help speed up the SBA application timeline. Fees and interest rate maximums are set by the SBA so you don’t have to worry about hidden surprise expenses tacked onto your loan amount. On top of that, BayFirst Financial reviews from customers reveal a high level of satisfaction with employees. 

If you’re comparing small business loans to find the best one, here’s what you need to know about BayFirst Financial.

Moderate Funding Time

BayFirst Financial is a preferred SBA lender, which means their loan applicants get prioritized approvals with the SBA. 

BayFirst takes 10 days to internally approve applicants, then they typically get SBA approval within 24 hours. So where an SBA loan with a non-preferred lender could take several weeks or even months from start to finish, applicants with BayFirst can complete the process and get funded within a couple of weeks. It’s slower than an online term loan, but definitely comes with competitive repayment terms that work well for planned expenses.

Moderate Loan Amounts with Collateral Required

BayFirst Financial offers a moderate SBA 7(a) loan amount of up to $350,000. While other lenders will offer amounts up to $5 million, BayFirst could be a good option for businesses needing a more moderate amount. The downside of the SBA 7(a) loan program is that loans over $25,000 do require a first position UCC Filing.

Competitive Interest Rates and Low Lender Fees

SBA 7(a) loans are known for having competitive interest rates. The rate, however, depends on the length of the loan term and the loan amount. All rates are based on the WSJ Prime rate which is variable

For loans that mature in seven years or less, the following maximum rates apply:

• $25,000 or less: WSJ Prime Rate + 4.25%
• $25,000 to $50,000: WSJ Prime Rate + 3.25%
• $50,000 or more: WSJ Prime Rate + 2.25%

For loans that mature in more than seven years, the following maximum rates apply:

• $25,000 or less: WSJ Prime Rate + 4.75%
• $25,000 to $50,000: WSJ Prime Rate + 3.75%
• $50,000 or more: WSJ Prime Rate + 2.75%

As you can see, rates are higher when you opt for a longer repayment term. That extra time can help make monthly payments more manageable for your business. But you’ll end up paying more in interest, both in terms of rate and the length of time you’re making payments. 

BayFirst’s lender fees are fixed based on your SBA loan characteristics. There are no upfront or annual service fees for loans under $500,000

There are, however, prepayment penalties for loans that are 15 years or longer and when 25% or more of the outstanding balance is prepaid. The fee ranges from 1% to 5% of the prepayment amount. 

Potentially Flexible Requirements to Get a Loan

BayFirst Financial doesn’t give explicit requirements on applying for an SBA loan, except to say that they review your current and past business financials, credit score, expected use of the loan funds, and more. 

The SBA does require a minimum time in business of two years, but there is no explicit minimum monthly revenue.

Consistent Repayment Terms

The length of your repayment term depends on the purpose of the loan funds. You’ll 

pay back the loan for up to 10 years if the funds are used for working capital, equipment, or inventory. The repayment term can go up to 25 years if used for commercial real estate.

Outstanding Customer Reviews

BayFirst Financial reviews online stand out considerably compared to most other lenders. Their third party reviews typically range between 4 and 5 stars across platforms. These reviews are for all loan types, not just business loans, but it still demonstrates the company’s commitment to stellar customer service. 

Want to compare BayFirst Financial business loans to other lenders? 

Apply through Lendio today. 

*The information contained in this page is Lendio’s opinion based on Lendio’s research, methodology, evaluation, and other factors. The information provided is accurate at the time of the initial publishing of the page (September 27, 2022). While Lendio strives to maintain this information to ensure that it is up to date, this information may be different than what you see in other contexts, including when visiting the financial information, a different service provider, or a specific product’s site. All information provided in this page is presented to you without warranty. When evaluating offers, please review the financial institution’s terms and conditions, relevant policies, contractual agreements and other applicable information. Please note that the ranges provided here are not pre-qualified offers and may be greater or less than the ranges provided based on information contained in your business financing application. Lendio may receive compensation from the financial institutions evaluated on this page in the event that you receive business financing through that financial institution.