Is it possible to make the allies start with knife and pistol only instead of full load out WITHOUT having to put a mod on the server? Im thinking of making a map that would utillize this.

yes
u need a player_weaponstrip entity, its not in the fgd but it works still
name it so you can trigger it
then u need a game_team_master (or something) so it only affects the allies (if you want)
then you need a game_player_equip
in smart edit mode it would look like

targetname allied_equip
weapon_colt 1
weapon_knife 1


then u need a trigger in the allied spawn to set the whole works off (use a multi-manager)