Many small businesses need a revolving line of credit to make payroll. This is especially true with businesses doing business with state and federal government agencies in which there may be a considerable delay between when the work was accomplished and when the government pays its invoices.
The company The Frau used to work for has about a 90 day delay between when they submitted invoices and when the government paid. The only way her business could stay in business was to take out a short term loan to make payroll every two weeks and then pay it back when the government paid them.
Crappy way to do business but that's life with the government.
In this case lowering taxes would not do much if a small business can't make payroll every two weeks.
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"These are the very taxpayers who stood by America's banks in a crisis, and now it's time for our banks to stand by creditworthy small businesses and make the loans they need to open their doors, grow their operations and create new jobs," Obama said.
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There is nothing wrong with banks loaning creditworthy businesses money. In fact, that is how businesses run in many cases.