Hoping to bolster the local economic climate, Santa Paula has formed a partnership with Cal State Channel Islands to create and administer a loan program for small businesses, officials said Friday.

The city and the university's Small Business Institute have committed $100,000 to the micro-loan program designed to provide assistance to businesses within Santa Paula's redevelopment area, which includes downtown, officials said.

Businesses approved for loans also will qualify for free management and technical assistance from college senior and graduate-level business students.

The institute will approve the loans and administer the program, said Director Rudolph Estrada, a business and management professor at Cal State Channel Islands.

"We are looking forward to developing a strong relationship with the city of Santa Paula," Estrada said. "We hope to enhance the small business community of the city and at the same time enable our business students to enhance their skills and gain real-life, firsthand experiences in their consulting assignments."

City Manager Wally Bobkiewicz said the venture would give small business owners access to support that they otherwise could not afford and would boost the city's efforts to attract new businesses.

"If we can say, 'Come to Santa Paula and we'll give you the resources of Cal State University Channel Islands business school,' that will help set Santa Paula apart," Bobkiewicz said. "No other city in the county can offer that."