Paragon Bank’s SME Lending division has broadened the scope of green assets and equipment it is willing to fund, aiming to enhance its support for small and medium-sized enterprises (SMEs) transitioning to sustainable practices.
The bank will now consider financing a wider range of assets, including solar panels, wind turbines, electric vehicle (EV) charging infrastructure, hydroelectric turbines, and geothermal heat pumps. Additional eligible assets include battery energy storage systems, voltage optimisation systems, and tidal and wave energy technologies. These options are intended to help SMEs reduce emissions and progress towards net zero targets.
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To underpin this initiative, Paragon has assembled a team of green lending specialists, providing expertise and tailored support for SME customers focusing on sustainability. This expansion builds on the bank’s existing green lending portfolio, which has included funding for zero- and low-emission vehicles, biomass boilers, solar-powered welfare pods, LED lighting, and electric warehouse equipment.
The initiative coincides with Paragon’s approval to participate in the British Business Bank’s Growth Guarantee Scheme (GGS). Under the scheme, Paragon will offer asset finance and commercial loans ranging from £25,001 to £2 million per customer, subject to eligibility criteria. Launched in 2024, the GGS succeeds the Recovery Loan Scheme and aims to enhance access to finance for smaller UK businesses, supporting approximately 11,000 companies until March 2026.
Paragon plans to channel support to SMEs through multiple routes, including direct lending, partnerships with vendors, and intermediaries.
John Phillipou, Managing Director of Paragon SME Lending, highlighted the importance of SMEs in achieving the UK’s net zero ambitions. “The UK is on a path to net zero, and SMEs are integral to achieving that goal,” he said. “These businesses need access to finance to invest in green infrastructure, energy storage, and more energy-efficient equipment. Our expanded green asset offering and participation in the GGS allow us to support a broader range of projects, helping SMEs reduce carbon emissions while growing their businesses.”
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