Paragon Bank has successfully delivered over £31 million in funding to more than 200 SMEs 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.
To date, more than 220 facilities have been originated, providing critical financial support to businesses operating in various sectors including construction, manufacturing, logistics and transport, agriculture and more. The GGS, part of the government’s wider support for British enterprise, has enabled Paragon to support a broader spectrum of businesses in need of vital growth capital.
The scheme’s impact has been significant, enabling Paragon to back business investment that would otherwise not have been possible, providing unsecured loans as well as asset-based finance – with the volume of lending and number of businesses supported growing daily, and benefits already being seen across the SME population and regional economies.
Crucially, the scheme – which is running until March 2026 – is providing Paragon with valuable insights, which can be used to inform future credit appetite, enabling Paragon to broaden its customer reach and appetite over the longer term, ensuring that the bank is able to continue to support an ever-increasing number of customers in the years to come.
Earlier this month, the UK government announced an additional £10.3 billion in funding for the British Business Bank to boost support for SME businesses and enhance regional growth – including £500 million in extra lending capacity for the Growth Guarantee Scheme. This move came as part of a broader strategy to strengthen the UK’s economic resilience and innovation through improved access to finance.
Paragon continues to work closely with the British Business Bank to allocate more GGS funding where possible, to continue supporting existing and new customers. The bank’s involvement in the scheme is also contributing to its wider goal of helping to drive economic growth, sustainability and innovation across the UK.
Phil Hughes, Deputy Managing Director of SME Lending at Paragon Bank, said: “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. 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.”
