Paragon Bank passes £90m of lending through Growth Guarantee Scheme

Paragon Bank’s SME Lending division has deployed more than £90 million through the British Business Bank’s Growth Guarantee Scheme (GGS), supporting more than 300 SMEs across the UK.

Since becoming an accredited GGS lender, Paragon has increased its lending through the programme and received additional allocations from the British Business Bank following demand for the funding.

The Growth Guarantee Scheme, delivered by the British Business Bank on behalf of the UK Government, is designed to improve access to finance for smaller businesses by providing lenders with a government-backed guarantee.

Paragon has used the scheme to support businesses across sectors including manufacturing, transport, construction, engineering and agriculture, providing funding for investment, expansion and productivity improvements.

Businesses supported include an aircraft manufacturing company in the North West, which received a £100,000 GGS-backed loan to fund staff training and a new site.

A community centre in York supporting school leavers and adults with additional needs received £67,000 to invest in a wastewater treatment system, while a North East coffee shop business used £25,000 of GGS-backed finance to refurbish its fourth location.

Phil Hughes, Deputy Managing Director of SME Lending at Paragon Bank, said:

“Reaching £90 million of lending through the GGS demonstrates the value of the scheme and the important role it is playing in supporting Britain’s small businesses’ resilience and growth.

“SMEs are the engine of the UK economy, but many continue to face barriers when seeking finance. The Growth Guarantee Scheme helps bridge that gap, giving businesses access to the funding they need while allowing lenders such as Paragon to support a broader range of viable firms.”

Paragon is calling for the British Business Bank to build further on initiatives such as the GGS as part of efforts to improve access to finance for SMEs.

Hughes added: “Continued support will be vital if we are to drive productivity and help Government deliver on its ambitions to achieve growth in every postcode.”

Reinald de Monchy, Chief Banking Officer at the British Business Bank, said: “The Growth Guarantee Scheme continues to play an important role in improving access to finance for smaller businesses across the UK.

“We’re pleased to work with delivery partners like Paragon Bank to ensure businesses can access the funding they need to invest, grow and contribute to economic growth.”