Northumberland County Council has agreed to provide £50,000 to the Northumberland Community Bank (NCB) as part of a loan to be repaid over the next decade.
The community bank, which provides lending services for local people and helps keep them away from unscrupulous loan sharks, needs to maintain a "capital to loan" ratio of 3% to satisfy the Financial Conduct Authority's rules.
A report presented to the council's cabinet on Tuesday explained that the bank provides a "vital alternative" to high-cost loans and illegal lenders for the county's residents, particularly individuals in Northumberland's "most vulnerable and disadvantaged communities".
