SoLo Funds
SoLo Funds operates a community peer-to-peer lending platform, founded in 2018. The company announced 1 million registered users as of 2023, making it reportedly the largest black-owned financial technology company in the United States.
In 2024, the Consumer Financial Protection Bureau sued the company over its lending model, citing misleading advertising that SoLo offered no-interest loans. The case was later dismissed in 2025.
History
SoLo Funds was founded in 2018 in New York City by Travis Holoway and Rodney Williams. Holoway and Williams wanted to provide short-term and small dollar loans as an alternative to banks and high-interest credit cards. The company was launched through the Hillman Accelerator in Cincinnati, and, in July 2018, they were accepted into the Techstars Kansas City program. In January 2019, the company relocated to Los Angeles.In 2019, the initial version of the company ran out of money and shut down. The founders relaunched the company in April 2020.
In November 2021, the company earned B Corp certification.
In April 2022, the company released the digital SoLo Wallet, allowing customers to add or access funds to their bank accounts and debit cards.
In 2023, the company announced an investment from investors, including tennis player Serena Williams's Serena Ventures. Also in 2023, the firm made CNBC's Disruptor 50 list.
In February 2023, the company reported over 1.3 million downloads of its app, claiming to be "the largest and first Black-owned personal finance platform". The company also reported it had processed over 600,000 loans, accounting for $300 million in transaction volume.
In February 2024, the company reported almost 2 million users of its app. In July 2024, CNN Underscored editors rated SoLo Funds as the best peer-to-peer lending app.
In January 2025, Solo released its 2025 Cash Poor report, based on a survey of 2,000 American adults, conducted by SoLo analysts in partnership with Opinium Research, Pace University, the Global Black Economic Forum, Aspen Institute, Financial Security Program, and the Independent Women’s Forum. The report concluded that cash poor Americans paid $39 billion on top of the advertised Annual Percentage Rate rates for short-term loans.
Controversy
The company functions via a peer-to-peer lending platform, claiming that its loans are interest free. However, SoLo Funds has been involved in several legal cases over alleged misleading marketing about its business model.In May 2023, the company settled regulatory cases in California, Connecticut and Washington DC, over allegedly misleading consumers about interest rates and fees as tips and donations. The company defended its tipping and donation model, but paid some penalties and agreed to make disclosures about tips and donations being voluntary.
In December 2023, Maryland regulators raised similar allegations. In May 2024, the Consumer Financial Protection Bureau sued the company over its lending model.
In July 2024, Pennsylvania Attorney General Michelle Henry announced a settlement with SoLo Funds for a regulatory case similar to those brought earlier by other states. The settlement, in the form of an assurance of voluntary compliance, required SoLo to pay a penalty and modify its business practices to comply with Pennsylvania law.
In October 2024, a federal judge denied SoLo Funds’ motion to dismiss the CFPB ruling.
In February 2025, the CFPB dropped its lawsuit against Solo Funds, reportedly the first case withdrawn by the CFPB after the Trump administration took over the agency.