Paragon gains £27m boost from Growth Guarantee Scheme

Paragon Bank has secured an additional £27 million from the British Business Bank’s Growth Guarantee Scheme (GGS), increasing its total GGS lending capacity to £55 million. Of this, £10 million has been earmarked to support UK businesses affected by changes in international trade tariffs.

The expanded allocation will enhance Paragon’s ability to provide funding to thousands of SMEs nationwide, particularly those grappling with the challenges of rising costs and supply chain disruptions linked to shifting global trade conditions. A targeted £7 million fund will be directed towards sectors such as manufacturing, which have been hit hard by tariff changes.

Since joining the scheme, Paragon has delivered more than £40 million in GGS-backed funding to over 300 SMEs across industries including construction, transport and agriculture. The new capacity will allow the bank to extend both unsecured loans and asset-based finance to businesses that might otherwise struggle to secure capital.

Phil Hughes, Deputy Managing Director of SME Lending at Paragon Bank, said the extra funding was both timely and strategic.

“The additional funding from the British Business Bank is a welcome boost and a clear vote of confidence in our ability to deliver meaningful support to UK SMEs. The dedicated £10 million for businesses impacted by international trade disruption is particularly important – these firms have faced unique pressures and we’re proud to be in a position to help them adapt and thrive,” he said.

Reinald de Monchy, Chief Banking Officer at the British Business Bank, highlighted the importance of the manufacturing sector to the scheme.

“We look forward to seeing the impact Paragon will have on their customers from this lending, unlocking much-needed capital for smaller businesses across the sector and generating growth,” he added.