KORET Israel, seeded with the estates of Joseph and Stephanie Koret, deploys philanthropic investments to help move Israel toward a free-market economy and to enhance economic expansion in Israel’s private sector.  KORET Israel Economic Development Funds (KIEDF) addresses a critical need of small business in Israel by providing the guarantees needed to facilitate loans. A unique model that leverages loan funds from partner banks, 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 economic growth in the private sector.  KIEDF was the model for the Israeli government’s own small business loan program launched in late 2003.

Program support was provided for two of KIEDF’s revolving loan funds, a Small Business Loan Program and a Micro-Finance Initiative for low-income populations seeking to open small, home-based businesses. Prospective borrowers for the Small Business Loan Program, which provides loans of $15,000 to $100,000, received technical assistance to develop business plans.  Borrowers also received technical assistance for the first phase of business plan implementation.  In addition, for the Micro Finance Initiative, which provides $500 to $5,000 loans to low-income populations seeking to start up home-based businesses, 20-30 participants received four micro-finance program modules over two years.  Program modules provided participants with training and loan application and post-loan mentoring. To-date, the two programs' focus on the small-business sector has successfully facilitated more than $197 million in loans to private enterprise, bringing self-sufficiency and dignity to tens of thousands of Israeli business owners and their employees.