SoLo Funds
| Company type | Private |
|---|---|
| Industry | Financial technology |
| Founded | 2018 |
| Founder | Rodney Williams, Travis Holoway |
| Headquarters | Los Angeles , United States |
Area served | United States |
| Products | Peer-to-peer lending platform, SoLo Wallet |
SoLo Funds is a peer-to-peer lending platform built on community engagement, established in 2018 by Rodney Williams and Travis Holoway. By 2023, it had amassed over one million users, positioning it as the largest Black-owned fintech enterprise within the United States.
In 2024, the Consumer Financial Protection Bureau (CFPB) initiated legal action against SoLo Funds, accusing the company of deceptive advertising related to its no-interest loan offerings; this lawsuit was ultimately dismissed in 2025.
History
Originating in New York City, SoLo Funds was created to offer short-term, small-dollar loans as alternatives to traditional banking and high-interest credit cards. The startup debuted through Cincinnati’s Hillman Accelerator and participated in the Techstars Kansas City program starting July 2018. The company moved its headquarters to Los Angeles in January 2019.
After exhausting its capital and ceasing operations in 2019, the founders revived SoLo Funds in April 2020. The organization achieved B Corp certification by November 2021.
In April 2022, SoLo Funds launched the SoLo Wallet, a digital tool allowing users to deposit or withdraw funds using bank accounts and debit cards.
By 2023, SoLo Funds received investment from Serena Williams’ Serena Ventures and was featured on CNBC’s Disruptor 50 list. Its mobile application exceeded 1.3 million downloads and facilitated more than 600,000 loans with a total transaction volume of $300 million.
As of February 2024, the platform reported close to two million app users. Later that year in July, CNN Underscored recognized SoLo Funds as the leading peer-to-peer lending application.
In January 2025, SoLo published its Cash Poor report derived from a survey of 2,000 Americans, revealing that consumers lacking cash reserves paid $39 billion above advertised APRs for short-term borrowing.
Controversy
Operating as a peer-to-peer lending service, SoLo Funds advertises its loans as free of interest charges. Nonetheless, the company has encountered several legal disputes alleging misleading promotional practices concerning its operational model.
In May 2023, SoLo Funds resolved regulatory investigations in California, Connecticut, and Washington DC related to accusations that it mischaracterized interest rates and fees as optional tips or donations. While defending this approach, the company agreed to pay fines and to make clear that tips and donations are voluntary.
Comparable claims were raised by Maryland regulators in December 2023. Subsequently, in May 2024, the Consumer Financial Protection Bureau (CFPB) filed suit against SoLo Funds over its lending methods.
By July 2024, Pennsylvania Attorney General Michelle Henry negotiated a settlement with SoLo Funds mandating penalties and modifications to align with state regulations.
In October 2024, a federal court rejected SoLo Funds’ request to dismiss the CFPB lawsuit. Despite this, the CFPB withdrew its case against SoLo Funds in February 2025, marking the first such withdrawal under the Trump administration.