The scheme will provide 30 properties in total, with a mixture of three- and four-bedroom homes.
The senior debt development loan facility will enable the project to be built out.
This is the second deal that the bank has supported Bowbridge Homes with over the past two years.
The homes are planned for completion towards the end of this year and into the beginning of 2021.
- Funding dependent on loan book redemptions to finance current commitments could become 'problematic'
- Paragon grows development loan book to over £500m
- Paragon provides £11.8m for west London residential project
Oliver Purday, managing director at Bowbridge Homes, said: “This loan continues our relationship from previous schemes with Paragon.
“We like that they are pragmatic during the development and accept that there will need to be amendments to the programme or plans depending on individual issues that arise.”
Anil Sehmi, relationship director in Paragon’s development finance team, added: “It’s great to support Bowbridge on another scheme, providing more much-needed housing to the market.
“In the unprecedented times we find ourselves in, we are working hard to continue supporting both existing and new clients.”