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Leveraging
We us our assets as guarantees to provide a portion of the securities needed to facilitate bank loans to small and medium-sized businesses (SME's) unable to obtain credit on reasonable terms – the major problem of these enterprises – and applies investment proceeds to cover a portion of loan losses and program and administrative costs. Each philanthropic dollar leverages up to 17 times the credit to qualified SME clients and revolves continuously to generate new program credit.
SMEs
KIEDF’s premier SME business program with Bank Leumi has been upgraded with an expanded geographic reach. The program focuses on businesses within economically challenged areas where the lack of credit availability on reasonable terms contributes significantly to the lack of employment opportunity.
History
KIEDF was established in Israel in 1994 upon the initiative of the Koret Foundation of San Francisco to demonstrate that philanthropic funds could be used efficiently to stimulate economic development and employment opportunity in the private sector in Israel.
KIEDF is recognized as the preeminent Israeli private source of credit and business services.
Microfinance
Our microfinance services provide access to credit combined with ongoing business and technical services – the ONLY such national programs in Israel. These Services are focus upon maintaining current services, expanding to additional marginalized populations, providing business expertise to assist veteran clients and introducing additional services needed for development and growth among our target populations.
Past Programs
From 2010-2017, KIEDF negotiated a $10,000,000 second loss guarantee from the Overseas Private Investment Corporation (OPIC), a US government entity, to provide development financing in the Negev and Galilee in 2010. Over $125,000,000 of credit to 1,500 SMEs was facilitated.
We provided and managed loan guarantees for Keren Shemesh, facilitating $11m to 500 small businesses from 2007-2013 to young entrepreneurs, primarily from the periphery and disadvantaged backgrounds.
KIEDF managed $5.5m of Israel Emergency Campaign funds from JFNA for SME development and recovery following the second Lebanon war (late 2007-2010). Over $40m of credit was facilitated to more than 750 businesses in the North by mid-2010 from Jewish Agency for Israel funds, and through the KIEDF Northern Israel partnership with The Portland Trust and the United Jewish Israel Appeal of England that commenced in August 2006.
KIEDF launched the Microenterprise Initiative in 2006 to help low income, and unemployed populations create an independent income generating activity. As part of our ongoing business services, KIEDF provides training and consultation to populations needing crucial assistance.
From 2006 through 2010 KIEDF supplied the tools necessary to develop and successfully manage a business activity and grow into a business. KIEDF based our programs on the International Labor Organizations (ILO) trainings. Training was adjusted to the needs of different target populations (mainly women), including new immigrants, entrepreneurs from Orthodox communities, welfare recipients, and Israeli Arabs.
KIEDF draws on our experience in trainings, access to credit and one on one consulting to continue to meet the needs of business development.
At the request of the Government of Ireland and the Worldwide Irish Funds, KIEDF was consulted on the establishment of a private sector fund for SMEs in Ireland based on the KIEDF model to be capitalized by philanthropy from the Irish Diaspora. KIEDF also consulted with interests in Rwanda and Ethiopia to replicate the model for SMEs. Additionally, KIEDF has provided organizational consultation to assist with program development for other Israeli NGOs.
We work with local and national organizations throughout the country.