The offering is targeted at new-build residential developments with a sub-£1m funding requirement to help housebuilders and developers with smaller projects.
It will enable the lender to support clients during the earlier stages of their business growth and as they mature to larger-scale projects.
Robert Orr, managing director of development finance at Paragon (pictured above), said: “This [offering] complements our existing residential development product range of loans from £1m to £30m.
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“Our business pipeline is strong, and the widening of lending criteria further supports our dedication to this sector.”
During 2020, the business hired five new relationship directors and four portfolio managers to support both the launch of the new product and growth of the existing business.
The credit and operations function also expanded.
“Developers want to work with a bank that is consistent, financially strong and has the experience and expertise to support their business,” Robert added.
“We have remained active throughout the coronavirus pandemic and our clients appreciate that commitment to the market.”
Paragon’s net development loan book increased by 20% during 2020 to £609m.