SoLo Funds

SoLo Funds is a community finance platform that provides equitable access to capital through an emergency loan marketplace. Founded in 2018, the company aims to promote financial autonomy by enabling individuals to request and fund emergency loans within their local communities. SoLo Funds leverages innovative technology to facilitate peer-to-peer lending, transcending geographical boundaries to reach those in need.

At the core of SoLo Funds' offerings is a borrower-driven approach. Borrowers can set their own terms, including the loan amount (up to USD 575), repayment period (maximum 35 days), and an optional tip for the lender. This flexibility empowers borrowers to tailor their requests according to their unique financial situations. The platform does not charge interest on loans, making it a more affordable option compared to traditional payday lenders or overdraft fees.

SoLo Funds has experienced significant growth since its inception, with over 1 million users as of May 2024. The company has processed millions of transactions, facilitating USD 400 million in transaction volume and maintaining an impressive 93% repayment rate. A notable aspect of SoLo Funds' user base is that 82% of its members reside in underserved zip codes, reflecting the company's commitment to promoting financial inclusion.

In April 2022, SoLo Funds launched the Amplify Fund initiative, enabling corporations, nonprofits, and local governments to create equitable access to emergency capital and track the impact within their communities. This program leverages the collective power of various organizations to amplify SoLo Funds' goal of improving financial well-being in underserved areas.

SoLo Funds has also expanded its operations internationally, with Nigeria being its first international market in June 2023. The company plans to continue its global expansion in the next 12-18 months, aiming to bring its community-driven finance model to more regions.

In May 2024, the Consumer Financial Protection Bureau (CFPB) filed a lawsuit against SoLo Funds, alleging that the company misled customers about the overall cost of their loans and imposed hidden fees despite advertising a 0% APR. The company stated that it was "blindsided" by the legal action and claimed to have diligently followed the rules while engaging with regulators since its inception.