Asset Finance News

Paragon Bank delivers £31m to 200+ SMEs via Growth Guarantee Scheme

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Paragon Bank has provided over £31 million in funding to more than 200 small and medium-sized enterprises (SMEs) across the UK through the British Business Bank’s Growth Guarantee Scheme (GGS), underlining the scheme’s vital role in unlocking growth and innovation across key UK sectors.

So far, Paragon has originated more than 220 finance facilities under the scheme, delivering essential financial support to businesses in industries including construction, manufacturing, logistics, transport, and agriculture. The funding mix includes both unsecured loans and asset-based finance, reflecting the diverse needs of Britain’s SME sector.

The Growth Guarantee Scheme – part of the UK government’s wider support for business – is aimed at enabling banks like Paragon to offer growth capital to SMEs that may not otherwise have access to necessary finance. The initiative, which runs until March 2026, is already delivering measurable impact, not only supporting individual businesses but also contributing to broader regional economic development.

Phil Hughes, Deputy Managing Director of SME Lending at Paragon Bank, described the scheme’s early success as “a powerful tool and resounding success.”

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

In addition to direct lending, Paragon is using insights gained from the GGS to refine its credit appetite and reach new customers. This will help the bank continue expanding support for SMEs well beyond the lifespan of the current scheme.

Earlier this month, the UK government announced an additional £10.3 billion in support for the British Business Bank, including £500 million earmarked for boosting the Growth Guarantee Scheme’s lending capacity. The funding package is part of a broader strategy to enhance regional growth and economic resilience by improving SMEs’ access to capital.

Paragon Bank is working closely with the British Business Bank to ensure that more GGS funding is directed toward both existing and new SME customers. Its participation in the scheme aligns with the bank’s long-term commitment to supporting sustainability, innovation, and economic progress across the UK.