Social Impact Debt Fund IV

Flexible loans for lasting social impact

Many social enterprises, mission-led businesses and charities are delivering essential work but face barriers when accessing finance that reflects how they operate. Fund IV is designed to respond to that reality, offering investment that prioritises impact and financial resilience over short-term outcomes, while seeking to provide sustainability in all investments.

What is Fund IV?

Social Impact Debt Fund IV is a social investment fund delivered by Big Issue Invest, offering loan amounts between £500,000 and £4 million. It provides secured loans for asset-backed growth to established socially impactful organisations that are generating revenue, delivering social impact and looking to strengthen their long-term position in the following sectors:

Health and social care

Our focus on the health and social care industry is on:

• Care homes
• Hospice care
• Nursing homes
• Supported living 
• Clinical settings

Affordable housing and homelessness

Our focus in housing is on:

• Transitional supported housing
• Move-on accommodation
• Refugee housing 
• Rehabilitation housing 
• Sheltered living

Community and social infrastructure

We provide support to all kinds of community and social infrastructure, including:

• Co-working spaces
• Nurseries
• Colleges
• Community centres 

The fund provides one simple loan with one set of terms, instead of mixing different types or levels of debt. This can help businesses borrow around 10–20% more than they might get from a normal bank loan, subject to approval.

Fund IV in action

Across the UK, social organisations are delivering essential services every day, often while navigating complex challenges. Fund IV helped Great Oaks College overcome their challenges: 

Great Oaks College supports young adults aged 19 to 25 with special educational needs and disabilities, helping them develop independence, confidence and skills for adult life.Great Oaks was served notice on its purpose-built site in Hounslow, and needed to find a new site as quickly as possible or face closure.

Through Social Impact Debt Fund IV, we provided a £3.3 million loan to enable the college to purchase and refurbish a new site. This investment has helped secure the organisation’s long-term future, creating a stable base from which it can continue supporting students and expanding its impact over time.

Why does Social Impact Debt Fund IV exist

Socially impactful organisations tackling poverty and inequality often sit between traditional funding routes. Grant funding may be time-limited or insufficient, while mainstream finance may not be available in sufficient size or not account for social purpose or uneven income patterns.

Fund IV exists to bridge that gap. It provides capital that recognises social impact as central, while still taking a responsible and realistic approach to risk and repayment. The fund aims to support organisations with a history of revenue generation, and profitability to continue delivering impact over time.

Who Fund IV supports

Fund IV supports established charities, social enterprises and mission-driven businesses with a history of profitable revenue generation and assets to support secured debt. Organisations supported through the fund will:

• Have a clear social mission
• Operate in one of the following sectors: health and social care, affordable housing and homelessness or community and social infrastructure
• Have a history of profitable revenue generation
• Be expected to deploy the funding to improve their financial sustainability and scale up existing impact 
• Want funding that reflects how they operate, rather than forcing them to comply with a rigid repayment structure

The fund is not designed for early-stage organisations without a route to repayment.

Full eligibility criteria:

• Legally registered in the UK as a company or a charity 
• Generate social impact in the UK 
• Operate in one of the Fund’s three core sectors: Health and Social Care, Affordable Housing and Homelessness, Social and Community Infrastructure
• Minimum of 2 years of comprehensive financial accounts (three financial statements, audited or independently reviewed where required), with a track record of revenue generation and profitability 
• Assets to support secured debt – we require first-ranking security over assets valued in excess of the loan
• Established, proven leadership teams

If you are unsure whether you meet the criteria above, we encourage you to get in touch. 

Please note: Social Impact Debt Fund IV does not invest in Community Development Financial Institutions (CDFIs), lending businesses, property development businesses, house builders or manufacturers or organisations operating in business areas outside our three core focus sectors. Neither will Fund IV invest in any business which is not compliant with the negative screen set out in 2021 Better Society Capital Responsible Business Policy set out here: ESG approach | Better Society Capital.

What type of investment does Fund IV offer?

Typical loan features (subject to affordability and due diligence):

• Type: Secured Loan 
• Amount: Between £500k and £4m 
• Interest Rate: Fixed rate loans, starting at 6% (for a limited time). Subject to assessment. Email for rate availability. 
• Use of proceeds: Expansion of services, property acquisition or refurbishment, purchase of capital equipment, energy efficiency, or to fund delivery of new services. 
• Repayment: 3-6 years repayment terms. Flexible repayment profiles available (subject to assessment), including 20-25 year amortisation profile, potential for an initial interest-only period and/or interest roll-up. 
• Security: We require first-ranking security over assets valued in excess of the loan. We lend up to a maximum of 90% Loan to Value (LTV) vs typical bank loan limitations as low as 50% LTV.

Key Benefits:

• Dedicated relationship manager during the loan application process and following loan drawdown. We adopt a partnership approach, working with you to come up with a bespoke loan structure that works best for your organisation 
• High LTV loans available, meaning less deposit required from the borrower for the project/property purchase. For example, on a £1 million property acquisition, Fund IV could reduce the deposit required from the borrower by £100-200k vs typical long term bank loan offer at 60-70% loan to value
• Single lender / set of loan terms (instead of securing total debt from multiple lenders), enabling faster project execution and simplified process 
• Flexible repayment profiles, including capital repayment holidays, interest roll-up, and 20-25 year amortisation profiles 
• Potential for investment readiness grant up to £15,000. This can be used to resolve outstanding due diligence requirements such as financial modelling and business plan preparation

How to apply for Fund IV

Our investment team will support you every step of the way. Here’s the process you need to follow:

1. Submit your application: If your organisation and borrowing request meets our eligibility criteria, one of our investment team will reach out for an initial introductory conversation and advance your application to the initial screening stage. 
2. Pre-due diligence: If positively screened, the application will go through our pre-due diligence stage where we present an initial overview of the borrowing request to our Credit Advisory Committee. 
3. Full due diligence: If approved at the pre-DD stage, your application will go through our full due diligence process, which involves a deep dive into your organisation and project to which the funding relates. We present a full due diligence memorandum to our Credit Advisory Committee, which is the final approval stage.  
4. Execution: If approved, we will draw up legal agreements and administer the loan.

If you are a credit broker or intermediary, please email brokers@bigissueinvest.com

How the Social Impact Debt Fund IV fits within Big Issue Invest’s wider work

Fund IV sits alongside Big Issue Invest’s broader range of funds and programmes, each designed to support organisations at different stages.

Fund IV exists to support established socially impactful organisations in the UK with a history of revenue generation, profitability and assets to support secured debt.

It is part of a wider ecosystem that includes loans, blended finance and investment readiness support. Organisations may engage with Big Issue Invest through these different routes over time, depending on their needs and circumstances.

There is no single recommended pathway, and Fund IV is just one option within a wider approach to impact-led finance.

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FAQs

Is Fund IV a grant programme?
No. Fund IV provides repayable social investment. It is designed for organisations that have a clear route to repayment.

Does Fund IV offer the same funding to every organisation?
No. Investment is structured around each organisation’s circumstances, income and impact rather than being a fixed product. It offers loans from £500,000 to £4 million.

Is Fund IV open to all organisations?
Fund IV supports established organisations in selected sectors that are delivering social impact and able to take on repayable finance. It will not be the right fund for every organisation.

How does Fund IV differ from other Big Issue Invest funds?
Each fund is designed to respond to different needs. Fund IV focuses on providing loans between £500,000 and £4 million to support established organisations delivering social impact in health and social care, affordable housing and homelessness, and community infrastructure.

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Social Impact Debt Fund IV customer testimonials

Nickyie Thomas – Principal, Great Oaks College Great Oaks College received £3.3 million of funding from Big Issue Invest in order to purchase and refurbish a new site for the special needs college.

I was preparing to break the news to our students, staff, and families that the college could face closure. We felt as though we were running out of options—until we were introduced to Big Issue Invest.

There was fear, anxiety, and the deep worry that without financial backing, all the good we had built could be lost. Securing this funding has not only safeguarded the future of Great Oaks but has laid the foundation for growth. I love what Great Oaks stands for—and even more, what it has the potential to become, now we have this fantastic new backing from Big Issue Invest.

Meet the team

If you have any questions about the application process our friendly Social Impact Debt Fund IV team are here to help.

Disclaimer

“Fund IV” is managed by Big Issue Invest Fund Management Ltd (BIIFM). BIIFM is the alternative investment fund manager (“AIFM”) of the Fund and is authorised and regulated by the Financial Conduct Authority (FRN: 610618) as a “small authorised UK AIFM” in accordance with article 3(2) of the AIFMD to manage unregulated AIFs. The fund is addressed to professional investors only.

Please note that past performance cannot be relied on as a guide to future performance. The capital of Investors in the Fund is at risk. Any target is not a predictor, projection or guarantee of future performance.

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