SoLo Funds — borrowing a small amount from your community when no other option fits
Most lending platforms are built around issuing thousands of dollars to borrowers. SoLo Funds is different - they focus on providing small dollar amounts, usually around a couple hundred dollars. On the other hand, credit unions, banks, online lenders— most all have minimum loan amounts that start at $300, $500, or $2,000. For someone who just needs $150 to keep the lights on, or $80 to fix the thing that's keeping them from getting to work, those minimums don't help. This is a guide to SoLo Funds - what they do, how to apply, and how the lender differs from others.
Loans on the SoLo platform range from $20 to $575. The average loan on the platform is around $73. There is no credit check. Another person in the SoLo community — a neighbor, a teacher, a nurse on the other side of the country — reads your request and decides to fund it. The money can arrive in your account in under 20 minutes.
That gap — the space between "I need $100 right now" and "the smallest loan anywhere starts at $300" — is exactly where SoLo operates. For the right situation, it fills something that nothing else does.
- NOTE: SoLo Funds has faced regulatory action in multiple states and a federal lawsuit over how it presents its costs to borrowers. More details are below. The company continues to operate, but read how the tip and donation model works before applying.
How SoLo actually works
SoLo is a mobile app with a website also being available. You download the app, link your bank account, and set up a profile. SoLo builds what it calls a SoLo Score using your bank transaction history — deposit regularity, spending patterns, account activity — rather than a credit score. This is why people with no credit history, no Social Security number, and no formal credit file can still be eligible.
When you need money, you post a borrow request. You say how much you need, what it's for, when you'll pay it back (within 35 days), and what tip you're offering the lender. Other SoLo members browse requests and choose which ones to fund. Once someone agrees to fund your request, the money goes into your SoLo Wallet, typically within 20 minutes. You can move it to your bank account for free, or transfer it instantly to an external debit card for a 1.75% fee.
First-time borrowers can request between $50 and $100. As you build a repayment history on the platform, that limit grows, up to the $575 maximum.
You can only have one loan at a time. Loans cannot be rolled over or extended — you owe a fixed amount by a fixed date, and that amount never compounds.
What it actually costs — the tip and donation model
SoLo does not charge interest. Instead, borrowers offer two optional amounts when making a request: a tip to the lender, which can range from 0% to 15% of the loan, and a donation to SoLo itself, which can be 0%, 7%, 8%, or 9% of the loan.
Both are described as voluntary. In practice, tips matter to lenders who are choosing which requests to fund — a request with a higher tip is more likely to attract a lender quickly. SoLo's own data, disclosed during the CFPB lawsuit, showed that on a $100 loan, the average tip offered was $10.40 and the average donation was $6.20. That puts the typical all-in cost at around $16 to $17 on a $100 loan.
That is not free. But it is less than a bank overdraft fee, less than a bounced check fee, and a fraction of what a payday lender would charge on the same amount over the same time period.
You can offer a tip of zero. A request with no tip may take longer to get funded or may not get funded at all within the three-day window — after which the request is removed and you'd need to start over. That is worth knowing before you post a request.
If you don't repay by the due date, there is a late fee of 10% of the loan amount or $5, whichever is greater. If the loan goes 90 days unpaid, it is sent to a third-party collections agency with additional fees attached. SoLo does report payment history to credit bureaus, so late or missed payments can affect your credit score — and on-time repayments can help build one.
What SoLo Funds is — and is not — for
SoLo works well for a single, specific, short-term need. A $120 car repair. A $200 utility bill due before payday. A $75 prescription. Something that has a clear dollar amount, a clear deadline, and a clear plan for repayment within 35 days.
It is not the right tool for larger needs. The $575 ceiling is firm. It is not for debt consolidation, longer-term borrowing, or covering multiple expenses at once. If you need more than $575 or need more than 35 days to repay, look at the other options in this industry — starting with the overview of peer to peer loans.
It is also not guaranteed. If no lender picks up your request within three days, you receive nothing and have to try again. SoLo is not a direct lender — it is a marketplace, and marketplaces depend on someone on the other side saying yes.
For anyone in immediate crisis who needs help with rent, food, or utilities, check what free assistance is available first. Loans have to be paid back. Grants and emergency help do not. Local charitable or government programs that cover bills directly are at the financial help in your county or city page.
Regulatory history — what happened and where things stand
SoLo has had real legal trouble. In May 2023, the company settled cases with regulators in California, Connecticut, and Washington D.C. over how it presented the tip and donation model to consumers — specifically, whether borrowers understood those costs were real. The company paid penalties and agreed to clearer disclosures going forward.
In May 2024, the CFPB filed a lawsuit making similar allegations — that SoLo misled consumers about the true cost of borrowing. That lawsuit was dismissed in February 2025 under the current administration. SoLo says the dismissal vindicates its model. Consumer advocacy groups disagreed, arguing the dismissal reflected a change in enforcement priorities rather than a finding that SoLo's practices were sound.
SoLo's BBB rating is currently a D, with accreditation revoked in September 2024.
What that means. SoLo is a real, operating platform used by over two million people, and it does fill a gap for borrowers who have no other small-dollar option. The cost model is real — tips and donations add up — and the regulatory history is real too. Go in with both of those things in mind.
How to apply
SoLo is available on iOS and Android. Search "SoLo Funds" in the App Store or Google Play. Or use this for the google play link at https://play.google.com/store/apps/details?id=com.solofunds. The link to SoLo Funds on iOS is at https://apps.apple.com/us/app/solo-funds-lend-borrow/id1270164837.
You'll link your primary bank account during setup, which can take up to 48 hours to verify. More information is at https://solofunds.com/. There is no phone-based customer service in the traditional sense — support is handled through the app and website.
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