The co-founder of the peer-to-peer lending platform SoLo Funds is on a mission to encourage the millions of Americans that live paycheck to paycheck and can’t bear the money crunch caused by the coronavirus pandemic.
Travis Holoway, Co-founder, and CEO, SoLo Funds, says, “We now are facing the most significant financial emergency the nation has ever faced in recent history. 34% of Americans have zero dollars in savings. Moreover, Several weeks ago, people began to realize they may have only one or two paychecks left. Hence, Many furloughed and cannot go back to work.”
The budgetary decline in the U.S. keeps plucking up momentum with no end in sight. Further, About 10 million Americans filed for unemployment in the past three weeks, and their ranks keep evolving. Additionally, The government’s general incentive program, which provides one-time payments of $2,400 to couples and $1,200 to individuals. It provided they meet specific qualifications, which is a welcome relief but not sufficient. The fees targets at couples with income up to $150,000 and individuals who earn up to $75,000. Eligible dependents could get $500. Meanwhile,$1,200 won’t cover monthly rents in many parts of the country.
Online Lending Platform
Realizing the essential need facing families across America, Williams and his partner are relaunching their two-year-old online lending platform with a new model for peer-to-peer lending. It will contribute microloans of between $50 and $1,000, with terms set by the borrower. There is no interest impose for the loans on the platform. Borrowers set their terms, select the repayment date, how much they need, the reason they need it, and what they would like to tip the individual lender.
Williams stated, “We didn’t create the platform identifying the COVID-19 pandemic would occur, but now that this has happened, this is an option for an alternative method of financing. SoLo Funds poise to approve $10 million in loans during this critical time.”