Paragon Bank has provided more than £31 million in lending to over 200 small and medium-sized businesses across the UK, as part of its involvement in the British Business Bank’s Growth Guarantee Scheme.

The funding, delivered through more than 220 loan facilities, has been used to support firms in sectors such as construction, manufacturing, logistics, transport and agriculture.

The scheme, which runs until March 2026, is designed to provide growth capital to businesses that might otherwise struggle to secure traditional finance.

FUNDING MIX

Paragon’s participation in the scheme has enabled the bank to offer a mix of unsecured loans and asset-based finance, with both the volume of lending and number of recipients continuing to grow.

The initiative is also helping the bank to expand its customer base and refine its approach to SME lending.

Phil Hughes, deputy managing director of SME lending at Paragon Bank, said the scheme had already proved a “resounding success” in unlocking funding for UK businesses.

“The Growth Guarantee Scheme has been a powerful tool and resounding success in helping us extend more support to ambitious UK businesses who need it,” he said.

“We’ve already seen what a difference it can make in unlocking funding – especially for sectors vital to the economy and productivity such as construction and agriculture, where upfront investment can be a major barrier.

“The early success and scale of demand speak volumes – and with the right backing, we’re ready to do even more.”

The Growth Guarantee Scheme is part of the UK government’s wider efforts to bolster regional economies and drive innovation through improved access to finance. Earlier this month, the government pledged a further £10.3 billion for the British Business Bank, including £500 million in additional lending capacity for the scheme.

Paragon said its ongoing collaboration with the British Business Bank would enable it to support even more SMEs in the coming years, while using insights from the scheme to shape its long-term lending strategy.

The bank described the GGS as an important mechanism for stimulating investment and economic activity, particularly among businesses that are critical to the UK’s productivity and sustainability ambitions.