Paragon Bank’s SME Lending division has deployed more than £90 million through the British Business Bank's Growth Guarantee Scheme (GGS), helping small and medium-sized businesses across the UK invest, expand and create jobs.
Since becoming an accredited GGS lender, Paragon has steadily increased its support through the programme, receiving additional allocations from the British Business Bank in recognition of strong demand and successful deployment.
The GGS, delivered by the British Business Bank on behalf of the UK Government, enables lenders to provide funding to small businesses that may otherwise struggle to access finance. Through the scheme, Paragon has supported over 300 SMEs across sectors including manufacturing, transport, construction, engineering and agriculture.
For SMEs, the scheme provides access to funding that can support expansion, improve productivity and strengthen resilience. For lenders such as Paragon, it enables greater support for businesses that may have strong growth prospects but require additional backing to access finance.
Businesses to benefit include an aircraft manufacturing firm in the North West, which secured a £100,000 GGS-backed loan from Paragon to support growth opportunities through staff training and a new site; a York community centre supporting school leavers and adults with additional needs (SEN) which received £67,000 finance to invest in a wastewater treatment system; and a North East coffee shop business which conducted a refit of its fourth shop thanks to £25,000 GGS-backed funding.
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.
"That's why we are urging the British Business Bank to build further on schemes such as the GGS. 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."
