By Andy Sullivan

WASHINGTON (Reuters) - Democrats inCongress have a late chance to show frustrated voters they aretrying to boost the sluggish economy with a plan to extend helpto small businesses before the November midterm elections.

As lawmakers return from a month-long break this week,Democrats aim to pass their small-business bill out of theSenate by the end of the week and send it to the Housefor final approval.

The House has backed a version of the bill previously.

If the bill clears Congress, it would be a rare victory onthe job-creation front for Democrats who have seen many oftheir other efforts torpedoed by Republicans this year.

"The 2010 jobs agenda for the Democrats has been a totalfailure both in terms of policy, perception and politics," saidEthan Siegal, an analyst with The Washington Exchange whotracks Congress for investors.

With the unemployment rate stuck at 9.6 percent,Republicans are poised to rack up big gains in the Nov. 2elections, possibly winning control of the House and theSenate, due in part to public perceptions that Democrats havenot done enough to create jobs.

The small-business bill gives Democrats a chance -- perhapstheir last -- to change voters' minds.

The bill would create a $30 billion fund that thegovernment would invest in independent community banks toencourage lending to small firms. It also includes $12 billionin tax breaks for small businesses.

President Barack Obama and other Democrats have argued thatthe lending measure would lead to more loans to smallbusinesses, enabling them to hire more workers. Industry groupsback the bill.

TROUBLE GETTING A LOAN

Smaller firms have complained that they have had troublegetting financing following the 2007-2009 financial crisis,when many banks pulled back their lending activity.

Republicans have called the proposal a junior version ofthe government's controversial bailout of Wall Street. Theyblocked action on the bill at the end of July, shortly beforeCongress started its break.

Democrats accuse Republicans of deliberately obstructingthe bill to score points in an election year, and with Congressout of town, Obama has hammered Republicans for blocking it.

"There are small businesses right now who are putting offplans to hire more workers because this bill is stalled," Obamasaid at a news conference Friday.

Democrats picked up needed support last week whenRepublican Senator George Voinovich said he would break rankswith his party and back it.

Voinovich would give Democrats the crucial 60th vote theyneed to overcome a Republican procedural hurdle and pass thebill.

Voinovich said Democrats would need to consider a measurethat would roll back a requirement that small businesses filetax forms on every purchase above $600.

One Democratic aide predicted that the Senate will pass thebill by the end of the week, but another was more cautious.

"We hope to complete action as early as next week. Thiswill of course depend on how cooperative Republicans are," saidRegan Lachapelle, a spokeswoman for Senate Democratic leaderHarry Reid.

Reid could have trouble rounding up enough Democratic votesif debate lasts much longer than a week, as many lawmakersfacing tough re-election battles will be eager to return to thecampaign trail.

If the bill passes, it will join the ranks of several otherrelatively small-scale stimulus efforts that Democrats havemanaged to pass this year after last year's $814 billionstimulus package.

Those include a $17 billion measure that provides taxbreaks to businesses that hire unemployed workers, more aid tothe unemployed, and money to help cash-strapped states avoidlayoffs of teachers and other public employees.

Both the House and the Senate have passed largerjob-creation bills, but have been unable to reconcile them inthe face of Republican opposition and rising public concernabout spending. (Additional reporting by Donna Smith; editing by MohammadZargham)