SBA declares default on Medallion (NASDAQ: MFIN) debentures

Rhea-AI Filing Summary

Medallion Financial Corp. reports that the U.S. Small Business Administration has declared an event of default on debenture financing provided to its subsidiary Medallion Capital, Inc. These SBA debentures totaled $73.5 million, or about 3% of consolidated borrowings as of March 31, 2026.

The SBA found Medallion Capital does not yet have a qualified management team and has directed it, within 120 days, to identify and submit at least one qualified candidate to serve as a full-time principal and investment committee member. The default does not trigger cross-defaults in Medallion Financial’s other debt. If requirements are not met, the SBA may declare the debentures and accrued interest immediately due and payable or pursue other remedies. Medallion Capital is working to submit a qualified candidate and believes that, with this supplement, it will have a qualified management team.

Positive

• None.

Negative

• SBA event of default on $73.5 million debentures introduces the risk that these borrowings and accrued interest could be accelerated if Medallion Capital fails to meet management‑qualification requirements within 120 days.

Insights

Credit risk analyst

SBA default creates targeted refinancing and compliance risk despite limited size.

The event of default affects $73.5 million of SBA debentures, described as about 3% of consolidated borrowings as of March 31, 2026. These are typically 10‑year, fixed‑rate borrowings that can be an attractive funding source compared to other capital.

The SBA has given Medallion Capital 120 days to present at least one qualified management candidate as full‑time principal and investment committee member. The default does not trigger cross‑defaults in other debt, limiting immediate contagion across the capital structure.

If Medallion Capital does not satisfy SBA conditions, the agency may accelerate the debentures, accrued interest, and other amounts, or use other remedies under the Small Business Investment Act of 1958. Actual impact will hinge on whether the SBA ultimately accepts the supplemented management submission and allows the debentures to remain outstanding on existing terms.

8-K Event Classification

Item 2.04 — Triggering Events That Accelerate or Increase a Direct Financial Obligation

1 item

Item 2.04 Triggering Events That Accelerate or Increase a Direct Financial Obligation Financial

An event triggered acceleration or increase of an existing financial obligation, such as a debt covenant breach.

Key Figures

SBA debentures outstanding: $73.5 million Share of consolidated borrowings: 3% Compliance deadline: 120 days +1 more

4 metrics

SBA debentures outstanding $73.5 million Portion of consolidated borrowings as of March 31, 2026

Share of consolidated borrowings 3% SBA debentures as percentage of consolidated borrowings

Compliance deadline 120 days Time for Medallion Capital to submit at least one qualified candidate

Debenture tenor Typically 10 years Usual term of SBA debentures described by the company

Key Terms

event of default, debenture financing, Small Business Administration, Small Business Investment Act of 1958, +1 more

5 terms

event of default financial

"the SBA notified Medallion Capital that it has declared an event of default with respect to such debentures"

An event of default is a specific breach of a loan or bond agreement—such as missed payments or breaking agreed rules—that gives lenders the legal right to act, for example by demanding immediate repayment, seizing collateral, or accelerating other obligations. For investors, it’s a red flag because it can sharply reduce a company’s ability to operate or raise money, like a car lender repossessing a vehicle after missed payments, and often leads to falling share or bond prices.

debenture financing financial

"consolidated borrowings ($73.5 million, or approximately 3%, as of March 31, 2026) are through debenture financing provided by the Small Business Administration"

Small Business Administration regulatory

"debenture financing provided by the Small Business Administration (the “SBA”) to our subsidiary Medallion Capital, Inc."

The Small Business Administration (SBA) is a U.S. government agency that supports small businesses by providing loans, grants, and resources to help them start, grow, and succeed. For investors, the SBA's programs can influence economic stability and small business performance, which in turn can impact overall market trends and local economies. Its role is to make it easier for small businesses to access financing and guidance, fostering entrepreneurship and job creation.

Small Business Investment Act of 1958 regulatory

"take any other remedy available under the Small Business Investment Act of 1958, as amended"

qualified management team financial

"until successful completion of that review, Medallion Capital is not deemed by the SBA to have a qualified management team"

Understanding 8-K Material Events →

false000100020900010002092026-03-312026-03-31

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the

Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): March 31, 2026

MEDALLION FINANCIAL CORP.

(Exact name of registrant as specified in its charter)

Delaware

(State or other jurisdiction of incorporation)

001-37747

(Commission File Number)

04-3291176

(IRS Employer Identification No.)

437 MADISON AVENUE, 38th Floor

NEW YORK, New York 10022

(Address of Principal Executive Offices) (Zip Code)

(212) 328-2100

(Registrant’s Telephone Number, Including Area Code)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐	Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐	Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐	Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐	Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, par value $0.01 per share	MFIN	NASDAQ Global Select Market

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. 

Item 2.04 Triggering Events That Accelerate or Increase a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement.

A portion of Medallion Financial Corp.'s consolidated borrowings ($73.5 million, or approximately 3%, as of March 31, 2026) are through debenture financing provided by the Small Business Administration (the “SBA”) to our subsidiary Medallion Capital, Inc. (“Medallion Capital”). These SBA debentures provide us access to long-term borrowings (typically 10 years) at fixed rates with coupons typically less than other sources of capital available to us.

As previously disclosed, the SBA had informed us that we need to have Medallion Capital’s management team reviewed through the SBA’s licensing division; until successful completion of that review, Medallion Capital is not deemed by the SBA to have a qualified management team.

On March 31, 2026, Medallion Capital submitted a management team for review through the SBA’s licensing division and shortly thereafter such submission, the SBA notified Medallion Capital that it has declared an event of default with respect to such debentures and directed Medallion Capital, within 120 days, to identify and submit at least one qualified candidate for consideration as a full-time principal and investment committee member of Medallion Capital. The SBA’s notice and event of default do not trigger any cross-default clauses in any of Medallion Financial Corp.'s debt arrangements.

In subsequent discussions with the SBA, the SBA has indicated that Medallion Capital must supplement its submission by identifying and submitting at least one qualified candidate for consideration. Medallion Capital is currently in the process of identifying and submitting at least one qualified candidate in response to the above notice and discussions. If Medallion Capital fails to satisfy these requirements, the SBA may declare the debentures, including accrued interest thereon, and any other amounts owed SBA with respect thereto, immediately due and payable, and/or take any other remedy available under the Small Business Investment Act of 1958, as amended. While there can be no assurance that the SBA will accept Medallion Capital's position, with this supplement, Medallion Capital believes it will have a qualified management team.

2

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

Dated: April 3, 2026

MEDALLION FINANCIAL CORP.
By:		/s/ Anthony N. Cutrone
		Name: Anthony N. Cutrone
		Title: Chief Financial Officer

3

FAQ

What triggered the SBA event of default for Medallion Financial (MFIN)?

The SBA declared an event of default because Medallion Capital, a Medallion Financial subsidiary, is not deemed to have a qualified management team. The SBA requires at least one qualified candidate as a full-time principal and investment committee member to remedy this.

How large are the SBA debentures affected for Medallion Financial (MFIN)?

The affected SBA debentures total $73.5 million, described as approximately 3% of Medallion Financial’s consolidated borrowings as of March 31, 2026. These borrowings typically have 10‑year terms and fixed coupons below other available capital sources.

Does the SBA default cause cross-defaults in Medallion Financial’s other debt?

The company states that the SBA’s notice and event of default do not trigger any cross-default clauses in Medallion Financial Corp.’s other debt arrangements. The default is therefore limited to the SBA debentures issued through Medallion Capital.

What must Medallion Capital do within 120 days to address the SBA default?

Within 120 days, Medallion Capital must identify and submit at least one qualified candidate for consideration as a full-time principal and investment committee member. It is currently working to supplement its management team submission to meet the SBA’s requirements.

What could happen if Medallion Capital does not meet the SBA requirements?

If requirements are not met, the SBA may declare the debentures, accrued interest, and other related amounts immediately due and payable, or use other remedies under the Small Business Investment Act of 1958. This would affect the $73.5 million SBA financing.

How does Medallion Capital view its management team after the planned supplement?

Medallion Capital believes that, with the planned supplemental submission of at least one qualified candidate, it will have a qualified management team. However, the company notes there can be no assurance that the SBA will accept this position.

Filing Exhibits & Attachments

1 document

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