The deal is targeted specifically at new build residential developments with a sub-£1m funding requirement to help builders and developers with smaller projects.
As a result, Paragon hopes to be able to support clients during the earlier stages of their business growth and as they mature to larger-scale projects.
The lender has formed a dedicated team and built a streamlined process for these deals to deliver quick decision making and efficient loan execution.
During 2020, the business hired five relationship directors and four portfolio managers to support the launch of this product and growth of the existing business. The credit and operations function was also expanded.
Robert Orr, managing director of development finance at Paragon, said: “Offering this sub £1m loan product will enable us to provide more tailored support to smaller house builders while aiding the growth of their business.
“This complements our existing residential development product range of loans from £1m to £30m. It also provides exciting opportunities for Paragon as a place to work, with added roles and progression opportunities as part of the enhanced team and product range.
“Developers want to work with a bank that is consistent, financially strong and has the experience and expertise to support their business.”