Oh, I'm in agreement with the article as far as the $5k tax credit for hiring. Hiring another person is NOT going to increase my business so it would be absurd for me to hire someone. Companies are laying off and shutting their doors because business is so bad. Why would I hire another person without the business to support their salary?
If you assume that things will start getting better, then small business loans would at least serve as a bridge to allow businesses to stay in business and keep people employed until things get better. If I stay in business, then I spend money with other companies on goods and services, keeping them in business, and I keep people employed, which allows them to spend money - also going to other businesses helping to keep them going.
Ultimately, it is the decision of the banking institutions as to whether they provide loans to businesses or not. The government doesn't have any way to force that to happen.