The increased loan limit enables the lender to support larger and more complex development projects, helping SME developers access funding.

The move forms a key part of Paragon’s ongoing diversification strategy as it develops a growing presence in PBSA and expands into new markets such as build to rent and later living.

Neal Moy, managing director of development finance at Paragon Bank (pictured above), said: “Raising our maximum loan size to £60m is a clear signal of our robust position in the market and long-term commitment to supporting SME developers and the wider housing market.

•   The Finance Professional Show 2024: The Video
•   Arc & Co and Paragon complete £10.36m resi loan
•   Paragon bolsters development finance team with series of promotions

“At a time when many lenders are pulling back, we’re stepping forward to finance ambitious projects, building long-term partnerships with our customers to deliver the varied homes and communities the UK needs. This increase reflects our custom-centric ethos and confidence in the sector as we diversify into new markets such as PBSA, BTR and later living.”

 “SMEs bring a huge amount of value to the development sector, creating quality thoughtfully designed and sustainable homes that are built to last, and we’re here to invest in their growth and ensure they have the right support they need to thrive.”