Paragon Bank has passed £90 million of lending through the Growth Guarantee Scheme, with more than 300 SMEs receiving finance under the government-backed programme.
The specialist lender has increased its use of the scheme since becoming an accredited provider, with the British Business Bank making additional allocations available following demand for funding.
Paragon has used the Growth Guarantee Scheme (GGS) to finance businesses in sectors including manufacturing, transport, construction, engineering and agriculture.
The programme is delivered by the British Business Bank on behalf of the government and is intended to improve access to finance for smaller businesses, including those requiring additional support to secure funding from lenders.
FUNDING USED FOR INVESTMENT
Among the businesses backed by Paragon is an aircraft manufacturer in the North West, which received a £100,000 GGS-supported loan to fund staff training and a new site.
A community centre in York supporting school leavers and adults with additional needs secured £67,000 to invest in a wastewater treatment system, while a coffee shop business in the North East used £25,000 of GGS-backed finance towards the refurbishment of its fourth outlet.
Phil Hughes, deputy managing director of SME lending at Paragon Bank, says: “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, says: “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.”
