Bournemouth Borough Council's 'bank loans' to businesses
9 October 2013 Last updated at 21:52 BST
Businesses in Dorset are now able to apply for loans from their local authority.
Bournemouth Borough Council's "Bank of Bournemouth" is using £15m of unallocated capital reserves to help out people who may have been turned down by banks.
Executive finance director Liz Wilkinson, said the pilot would offer "a real opportunity to support the local economy and help Bournemouth to grow and thrive".