SoLo Funds

SoLo runs a direct-to-consumer mobile app available on iOS and Android. Borrowers request small loans — typically under $1,000 — specifying the amount and repayment date; lenders on the platform browse and fund those requests. SoLo does not originate the capital itself, relying entirely on individual retail lenders who seek returns through tips and a marketplace model.

SoLo is an operating fintech company, not an investment fund. Institutional allocators cannot commit capital to the platform as a fund investment; its business model involves facilitating consumer loans between individuals. The company itself is venture-backed and not structured as a family office, endowment, or pooled investment vehicle.

Several state attorneys general and financial regulators have challenged SoLo's business model. The District of Columbia filed suit in 2023 alleging the platform's tips and donation fees amounted to predatory lending in violation of consumer-protection laws (per DC Attorney General, 2023). Connecticut and California regulators also reached settlements with the firm, requiring operational changes in those states.

SoLo is structured as a public benefit corporation, which legally commits it to consider social impact alongside shareholder returns. However, it does not operate a separate philanthropic foundation or donor-advised fund. The social mission is embedded in the commercial entity rather than housed in a 501(c)(3).

SoLo relies on a proprietary social-trust score rather than FICO or traditional credit-bureau data. The company evaluates borrower trustworthiness using on-platform behavior, community endorsements, and internal algorithms — a model designed to extend credit to consumers who are credit-invisible or subprime under conventional scoring systems.