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Public funds will be pumped into a council's trading arm amid a dire financial year.
Medway Commercial Group (MCG), a commercial company owned by the unitary authority subject to an ongoing police investigation, will be loaned the money from Medway Council.
Cabinet members unanimously approved plans to lend the company an undisclosed amount of money during a virtual meeting today.
A report presented to cabinet members says a re-evaluation of the company's business model is underway.
The company's chairman Cllr Howard Doe (Con) said the money would be used to invest in developing their own telecare and telehealth products for elderly and vulnerable people in the social care system.
He also said it would "deal with previous losses made by the company".
The details of the strategy have not been made public due to commercial confidentially, but Cllr Doe said he felt the plans were a "blueprint for success".
He added: "We think there's a real opportunity for the council to become involved in what it does anyway in the social services field and actually developing the products that make the life of the people receiving those services much better."
The company is looking to develop support aids for the elderly such as fall monitors.
Cllr Rupert Turpin (Con), who is a non-executive director of MCG, said: "We do need that loan to put us on a stable financial backing."
The firm forecast losses of £107,000 between April and June this year.
Cllr Vince Maple, leader of Medway's opposition Labour group, said: "Once again Medway Council is bailing out MCG. We have seen on more than one occasion this council pick up the pieces."
He also said whilst he accepted MCG now had a new senior management team, the reputational damage done to the company amid the police investigation may cause issues with it trying to procure new business in the future.
MCG was taken on by the authority in 2016 to carry out some services at a cheaper rate but faced public outcry for its failing CCTV system across the Medway Towns which found more than half of cameras were left beyond repair.
In February last year, a senior employee was suspended from duties.
The council's chief legal officer Perry Holmes previously said the council is helping the police with its investigation, which includes an audit of accounts for the Rochester-based company.
