• About
  • Contact
  • Testimonials
  • Newsletter
  • More
    • Demographics & Advertising Rates
    • Terms & Conditions
Wednesday, February 8, 2023
No Result
View All Result
California Business Journal
  • Front Page
  • Business
  • Finance
  • People
  • Featured
  • Opinion
  • Technology
  • Law
  • News
  • Food
  • Art & Culture
  • Human Interest
  • Education
  • Insurance
  • Real Estate
  • Health & Fitness
California Business Journal
CEO and Co-founder Travis Holoway, who conceived SoLo with President and Co-founder Rodney Williams

CEO and Co-founder Travis Holoway, who conceived SoLo with President and Co-founder Rodney Williams

There’s Social Media. How About Social Loans?

SoLo Funds (short for Social Loans) offers innovative alternatives to the strict business-as-usual, faceless financial transactions from traditional institutions – and it’s fueled by a new social element.

by Brenda Rees, Staff Writer, California Business Journal
A A
Share on FacebookShare on Twitter

What happens when you get hit with a hurricane of financial trouble? An emergency so unexpected – car accident, medical issues, etc. – that leaves you scrambling to pay bills, worrying how to feed your family and hoping to just plain survive?

Nearly eighty percent of Americans live paycheck to paycheck. Many turn to friends and family for a short-term loan, an ask that often feels shameful and downright humiliating, no matter if the amount is small. Conventional wisdom whispers against such borrowing. And for those in underserved communities, local resources are practically non-existent. There are no good options: a bank loan? Max out credit cards? Ask for an advance from work? Use one of those shady payday loan places?

Building a network of financial support that addresses the need for small loans while encouraging overall financial literacy and economic mobility for all is the foundation of SoLo Funds Inc.; SoLo is short for ‘Social Loans.’ This online platform offers innovative community finance alternatives to the strict business-as-usual, faceless financial transactions from traditional institutions; it’s fueled by people helping people.

Since its inception in 2018, SoLo has been tapping into the power of community and human generosity when it comes to borrowing and lending. To date, the online financial site has enabled more than 400,000 loans to the tune of more than $100 million. It became the only Black-led fintech certified B-Corp in the U.S. and Canada in 2021 and is poised this year to expand even more its reach to everyday Americans.

Indeed, SoLo members – those who borrow and lend funds – live across the country, but most are from underserved urban and rural areas, target audiences that SoLo founders are eager to engage.

SoLo“About 82 percent of our members live in underserved communities as designated by zip codes from the U.S. Census,” explains CEO and Co-founder, Travis Holoway, who conceived and launched SoLo with partner, President and Co-founder, Rodney Williams. Holoway has a background as a financial advisor working for eight years at Northwestern Mutual; Williams has years of experience in Brand at Procter and Gamble and later as founder and CEO of tech company LISNR.

Both agree that energizing the collective can help people in underserved communities, who have, for many years, been living in neighborhoods SoLo has coined “financial deserts” due to the lack of fair financial benefits provided, leading to reliance on institutional predecessors that hinder wealth accumulation and contribute to long term debt. SoLo, they contend, evens out the playing field, and brings services and products to a segment of the population who needs economic stability and financial guidance the most. It’s a platform that doesn’t just provide capital to those in need but empowers returns for those who fund which happens to be members in similar communities.

A helping hand, not a hand-out

Holoway and Williams recall where the seed for SoLo began. Both grew up in inner-city neighborhoods, and as they built their careers and became more financially successful, they were often asked by friends and family members for small loans, anywhere from $50 to $500. “I did lend at times,” admits Holoway who described getting some money paid back while other loans landed in a state of “convenient amnesia,” he says with a laugh.

Holoway and Williams point to the folksy community bank model, now a relic in the world of big chain financial institutions. Back then, members experiencing financial stress were met with understanding and compassion. SoLo, they contend, is a virtual continuation of that concept.

CEO and Co-founder Travis Holoway, who conceived SoLo with President and Co-founder Rodney Williams
CEO and Co-founder Travis Holoway, who conceived SoLo with President and Co-founder Rodney Williams

Holoway explains how SoLo works. Olivia needs a loan to fix her car unexpectedly. She’s a single mom (more than 60 percent of SoLo members identify as women) and can’t incur additional credit card debt. She needs her car to bring her kids to school, travel to her job. She turns to SoLo where she sets the terms of her loan, noting when she expects to pay it back and how much she’ll pay. Through a proprietary process influenced by cash flow data shared, Olivia earns a SoLo score on the likelihood of her paying back the loan. This financial assessment is designed to be fairer and more accurate than the traditional FICO score, which Holoway calls “broken.”

The SoLo process is built for speed; “You can post your need on the side of the road with a flat tire and receive money right there,” says Holoway.

Lenders browse through the platform of members asking for a loan, look at the SoLo scores and choose who they want to help. Most transactions happen between strangers and there are no hidden fees. What you give is what they get. If a borrower wants to “tip” their lender (aka the “cost of borrowing”), that’s acceptable but not mandatory.

ADVERTISEMENT

There’s something humbling and empowering about receiving money this way; borrowers are more dedicated to pay it back because, “it’s a person, not a faceless institution,” says Williams.

Beyond crowd-sourcing

SoLo takes the positive aspects of crowd-sourcing platforms (like GoFundMe) but continues the altruism, explains Williams. He shares the story of SoLo member Sam, a tech analyst in San Francisco who was laid off and needed financial assistance to get back on his feet. After receiving and paying back his loan on time, Sam has been “paying it forward by funding loans for other SoLo members.”

“About 30 percent of our lenders have borrowed on the platform,” explains Holoway. Each time Sam is repaid for helping a person in need, he can “turn around and use that money again to make a difference in someone else’s life. These funds – no matter how small – can do more than you think.”

All in all, people in need don’t want charity,” sums up Williams, especially underserved communities. “We provide ways to empower them to take control of their lives – with the power and help of their community, they have dignity during trying times.”

Copyright © 2022 California Business Journal. All Rights Reserved.

This article was edited and published by Rick Weinberg, California Business Journal’s Founder, Publisher and Editor-in-Chief. Click here for Rick Weinberg’s biography.

For testimonials on the impact of California Business Journal articles, click here.

Contact us if you’d like an article written on your business: Rick@CalBizJournal.com / 949-648-3815

Related Posts

Different Types of Interest Options for Loans
Different Types of Interest Options for Loans
Home Sweet Home
How to Improve Your Chances of Getting a Mortgage
How to Pay Off High-Interest Loans Faster
How to Pay Off High-Interest Loans Faster
WFP Income Fund
It’s Not a Bond, It’s Not a REIT, It’s the WFP Income Fund, and It’s Catching Major Tailwinds
Tags: advisorbenefitscarCEOcertifiedcommunitycompanyConventionalcredit carddatafinancefinancialfinancial advisorfintechfundingFundsinstitutionalleaveslendersloanloanslocalmedicalnetworkonlinepowerSanSan FranciscoSoLostresstargetThere’s Social Media. How About Social Loans?wealth
ADVERTISEMENT
Brenda Rees, Staff Writer, California Business Journal

Brenda Rees, Staff Writer, California Business Journal

Related Posts

Different Types of Interest Options for Loans
Different Types of Interest Options for Loans
Home Sweet Home
How to Improve Your Chances of Getting a Mortgage
How to Pay Off High-Interest Loans Faster
How to Pay Off High-Interest Loans Faster
WFP Income Fund
It’s Not a Bond, It’s Not a REIT, It’s the WFP Income Fund, and It’s Catching Major Tailwinds
advertisement
ADVERTISEMENT

CBJ Newsletter

Facebook Twitter LinkedIn Instagram LinkedIn

Advertise With CBJ

Contact Rick@CalBizJournal.com

CBJ Rates and Demographics

Job Postings

CEO Wanted


Requirements: BS/BA + 2yrs of Business Managing Experience

Mail Resume: Grand Life, Inc. 14647 Northam St. La Mirada, CA 90638.

$114,754/year

ADVERTISEMENT
1REALTOUR-SAN DIEGO-WEB DESIGN
Facebook Twitter LinkedIn LinkedIn Instagram
C B J   LOGO  SVG-01
  • About
  • Contact California Business Journal
  • Testimonials
  • Demographics & Advertising Rates
  • Terms & Conditions

Categories

  • Art & Culture
  • Business
  • California Hotel Listings
  • Daily Updates
  • Editor's Choice
  • Education
  • Featured
  • Finance
  • Food & Dining
  • Health & Fitness
  • Human Interest
  • Insurance
  • Law
  • Lawyers
  • Marketing
  • Medical
  • News
  • Newsletter
  • Opinion
  • People
  • Popular
  • Real Estate
  • Social Media
  • Technology
  • Top 25 Wealth Management Companies in California
  • Uncategorized

CBJ Partner Firebrand Media

Laguna Beach Independent Newspaper
 Laguna Beach City Guide
 Newport Beach Independent Newspaper
Newport Beach Country Club Magazine
  Montage Magazine
 Omni Escapes Hotel Magazine
 Bespoke Concierge New York
 Evans Hotels
 Laguna Beach Magazine
 On The Menu Laguna Beach
 Newport Beach Magazine
Coastal Real Estate Guide (NB,LB, CDM)
Monarch Beach Resort Magazine
 Pacific Coast Magazine (SoCal)
Sea Island Life Magazine
Salamander Hotel & Resorts Magazine
 View our entire portfolio

 

Most Viewed

  • Gavel, scales of justice and law books

    Lawsuit Basics: How Much Does It Cost to Sue Someone?

    0 shares
    Share 0 Tweet 0
  • Investigation: Can TriumphFX Take Your Money?

    0 shares
    Share 0 Tweet 0
  • The Impact of Covid: Racing to Buy Second Citizenships

    3 shares
    Share 0 Tweet 0
  • What to Do When an Online Casino Refuses to Pay Out Your Winnings

    0 shares
    Share 0 Tweet 0
  • Top 5 Flavors On Elf Bar BC5000 Review

    0 shares
    Share 0 Tweet 0
  • NFL Paychecks: How Do NFL Players Get Paid?

    0 shares
    Share 0 Tweet 0
  • Five Reasons Why The Government Does Not Like Bitcoin

    0 shares
    Share 0 Tweet 0
  • How to Start a Telecommunication Business: A Step-By-Step Guide

    0 shares
    Share 0 Tweet 0
  • Temu’s New Shipping Policy Is A Smashing Hit For Shoppers All Over the Country

    0 shares
    Share 0 Tweet 0
  • 6 Types of Business Records and Receipts Every Small Business Should Keep

    0 shares
    Share 0 Tweet 0

Latest Articles

Nashville: Top 5 Benefits of Commercial Cleaning Services

Nashville: Top 5 Benefits of Commercial Cleaning Services

Strategies On How To Play สล็อตเว็บใหญ่ (Gamebet123.app)

Strategies On How To Play สล็อตเว็บใหญ่ (Gamebet123.app)

Idle Cash and Inflation: How to Protect Your Savings

Idle Cash and Inflation: How to Protect Your Savings

Keeping U.S. Productivity Spinning

Keeping U.S. Productivity Spinning

The World Cup Managed to Showcase that the Mediterranean World is More Than Just Sand, Desert, and Camels.

The World Cup Managed to Showcase that the Mediterranean World is More Than Just Sand, Desert, and Camels.

Fiber Optic Communication Cables Could Provide Earlier Critical Earthquake Warnings, According to Hebrew U. Researchers

Fiber Optic Communication Cables Could Provide Earlier Critical Earthquake Warnings, According to Hebrew U. Researchers

Leveraging Big Data For Better Business Insights

Leveraging Big Data For Better Business Insights

What You Need To Know About The Sharpe Ratio

What You Need To Know About The Sharpe Ratio

5 Ways Remote Work is Impacting the Legal Industry

5 Ways Remote Work is Impacting the Legal Industry

Upgrade you Home Interior with These 2023 Modern Living Room Ideas

Upgrade you Home Interior with These 2023 Modern Living Room Ideas

California Business Journal | California Business News, California News Media, California business articles | Orange County, Los Angeles, San Diego, Inland Empire, Northern California, San Francisco | Huntington Beach CA 92649 | (949) 648-3815
ALL RIGHTS RESERVED BY CALIFORNIA BUSINESS JOURNAL.
Site Design by 1REALTOUR

No Result
View All Result
  • Front Page
  • Business
  • Finance
  • People
  • Featured
  • Opinion
  • Technology
  • Law
  • News
  • Food
  • Art & Culture
  • Human Interest
  • Education
  • Insurance
  • Real Estate
  • Health & Fitness

California Business Journal | California Business News, California News Media, California business articles | Orange County, Los Angeles, San Diego, Inland Empire, Northern California, San Francisco | Huntington Beach CA 92649 | (949) 648-3815
ALL RIGHTS RESERVED BY CALIFORNIA BUSINESS JOURNAL.
Site Design by 1REALTOUR