Paragon expands green asset funding options

Paragon Bank’s SME Lending division has further expanded the range of green assets and equipment it will fund as it looks to increase the support it offers businesses on their path to sustainability.

Amongst the assets Paragon will now consider are solar panels, wind turbines, EV charging infrastructure, hydroelectric turbines and geothermal heat pumps. The bank will also consider battery energy storage systems, voltage optimisation systems and tidal and wave energy, aiding SMEs on their journey to net zero.

With a team of green lending specialists now in place, Paragon SME Lending is well-positioned to offer expert knowledge and support to SME customers seeking to advance their sustainability efforts.

The move bolsters Paragon’s green lending activity, which to date includes funding a range of assets such as zero and low emission vans, taxis, refuge trucks and excavators, biomass boilers, solar-powered welfare pods, LED lighting equipment and electric warehouse equipment.

The expansion follows Paragon’s recent approval to join the British Business Bank’s Growth Guarantee Scheme (GGS). Under the scheme, Paragon will offer asset finance and commercial loans, with facility sizes ranging from £25,001 to £2m per customer, subject to eligibility.

The Growth Guarantee Scheme is the successor to the Recovery Loan Scheme and was launched by the British Business Bank in 2024. The GGS is designed to support access to finance for UK smaller businesses as they look to invest and grow and is expected to support around 11,000 small businesses until March 2026.

Paragon will be able to support SMEs looking for more sustainable solutions through various routes to market, including vendors, direct to clients and via intermediaries.

John Phillipou, Managing Director of Paragon SME Lending, commented: “The UK is on a path to net zero and the country’s SMEs will be integral to achieving that goal.

“This includes upgrading the built environment and investing in green infrastructure, energy creation and storage, as well as updating existing equipment to more energy-efficient alternatives.

“These businesses need access to finance to invest in these assets, so we are pleased to have widened the range of green assets we will consider to help them meet their ambitions.

“We have already funded a wide range of green assets, but our membership of the GGS enables us to consider a broader range of finance projects that we couldn’t have previously considered. We’re looking forward to working with SMEs to help them to grow their business, while also reducing their carbon emissions as we head towards the net zero target.”