This is a peg loom!
It is a 2x4 of pine with holes for wooden dowels to fit in. Each dowel has a tiny hole.
Peg Looms can be any size, and you don't have to use all the pegs. This small loom shows that you can make different designs when you weave.
Here is a purse made on a small peg loom.
String is strung through the hole in the peg and then the peg is placed back in the hole.
We used strips of Fabric around 2 inches wide to make our "rag" rug.
One technique is to fold the fabric in half while you are weaving. This leaves a more finished side on the front of the rug.
When the weaving reaches the top of the pegs, pull each peg up and replace it in its hole.
To finish the rug it is a good idea to line it up on a tile floor or a plastic mat with a grid. Place your hand on the loom and gently pull the rug so that you have enough string left to cut the rug from the loom and make fringe.
Cut the string from the loom and tie the 2 strings from the first peg to the 2 strings from the second peg. I like to tie a square knot than tie it again ( total of 3 knots) Continue until all the strings are tied. Use the grid on your mat to keep the edge of your rug straight.
Line up the strings so you can cut the fringe the same length.
Cut fringe desired length. Do the same for the other side.
Tuck in ends. Finished!