While it began as a modest experiment in deploying philanthropy to spur economic growth in Israel, Koret Israel Economic Development Funds (KIEDF) has grown to become the state’s dominant private-sector, small-business development program, helping thousands of Israeli small businesses to create and sustain tens of thousands of jobs while strengthening the environment for economic growth in the private sector. KIEDF’s focus on the small-business sector has successfully channeled more than $120 million in private philanthropy to job creation, bringing self-sufficiency and dignity to thousands of Israeli business owners and their employees.

Using unique models that leverage loan funds from partner banks, KIEDF was the model for the Israeli government’s own small-business loan program launched in late 2003.

Key programs include:

  • KIEDF Small Business Loan Fund, the original KIEDF program, works in partnership with bank Otzar Hachayal and Discount Bank to leverage loan guarantees and provide interest subsidies to small businesses lacking access to credit on reasonable terms. (Read profiles of loan recipients.)

  • KIEDF Microenterprise Initiative, which provides loan guarantees to economically disadvantaged populations seeking to establish home-based and other small businesses. KIEDF’s Microenterprise Initiative partners with Economic Empowerment for Women and Bank Hapoalim to identify program candidates and help them to qualify for loans of up to $5,000. (Read profiles of loan recipients.)

  • KIEDF Israeli Arab Loan Fund, which leverages loan guarantees to businesses owned by Israeli Arabs, or jointly owned by Israelis and Israeli Arabs, in partnership with the Center for Jewish and Arab Economic Development (CJAED) and Mercantile Discount Bank. (Read profiles of loan recipients.)
  • Koret Fellows Program, which provides annual fellowships to exemplary postgraduates to serve as economic policy analysts for select members of the Knesset and other government agencies, helping to develop legislative and regulatory policies to address issues that impede small-business development, employment expansion, and private-sector, economic growth in Israel. (Read profiles of KIEDF-Koret Fellows.)

KIEDF Managing Director Carl Kaplan and KIEDF Board Chairman Maj. Gen. (Ret.) Eitan Ben Eliahu oversee these programs while developing new directions based on the KIEDF model that put philanthropic dollars to use to help fuel Israel’s economy.

The American Friends of KIEDF offers organized support for the work of KIEDF. Under the leadership of President Abraham D. Sofaer, the American Friends’ efforts in fundraising, advocacy, and strategy aim to help move Israel toward a free-market economy and to enhance economic expansion in Israel’s private sector.