The facility offers funding up to £10m over terms of up to 24 months and is designed to support SME developers responding to rising demand for modern, flexible industrial space across the UK.

According to Paragon, demand for small industrial units remains high. Occupational demand reached 37.4 million sq ft in 2025, the highest level since 2022 and 12% above the pre-pandemic, five-year average. Occupier appetite is particularly high among SMEs, trades firms, e commerce retailers and hybrid companies seeking functional, flexible and well-located space.

Comment on the launch Paragon Bank managing director of development finance Neal Moy said:

“Across the country, there is an undersupply for small, flexible and well located industrial units, with SMEs increasingly looking to grow, improve their logistics capability or bring production closer to home. By providing specialist finance of up to £10m over 24 months, we are enabling developers to deliver the high quality units that modern businesses need to operate, grow and scale.”

He added: “This new product builds on a series of strategic moves we’ve made in the last year, including a growing footprint in later living, care, PBSA and Build to Rent segments, as well as raising our loan limit from £35m to £60m.

“Light Industrial finance is the next step in ensuring our developer partners have the support, clarity and long term relationship focus they expect from Paragon.”