Paragon secures £27m via BBB’s Growth Guarantee Scheme to support SMEs
Paragon Bank has been allocated a further £27m through the British Business Bank’s Growth Guarantee Scheme (GGS), bringing its total GGS lending capacity to £55m – with £10 million specifically set aside to support UK businesses affected by changes in international trade tariffs.
This latest allocation strengthens Paragon’s ability to provide vital funding to its thousands of SME customers across the UK, including those navigating the challenges posed by international trade disruptions. The targeted £10m fund will help businesses in sectors such as manufacturing – many of which have been disproportionately impacted by increased costs and supply chain complexities, such as from rising global tariff rates.
To date, Paragon has delivered over £40m in GGS-backed funding to more than 300 SMEs, supporting investment and growth across key sectors including construction, transport and agriculture. The additional funding will enable Paragon to extend its reach further, offering both unsecured loans and asset-based finance to businesses that may otherwise struggle to access capital.
The GGS continues to be a cornerstone of the UK government’s strategy to boost economic resilience and regional development. Paragon’s growing involvement in the scheme reflects its commitment to supporting UK enterprise and helping businesses navigate external challenges.
Phil Hughes, deputy managing director of SME Lending at Paragon Bank, said: “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 £10m 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. We’ve already seen the transformative impact of the Growth Guarantee Scheme, and with this new allocation, we’re ready to support even more businesses on their growth journeys.”
Reinald de Monchy, chief banking officer, British Business Bank said: “We are pleased to provide this additional capacity to Paragon Bank from the Growth Guarantee Scheme. Manufacturing is an important sector for the scheme, and 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.”