UPDATE 1-Obama, campaigning, pushes Republicans on jobs bill

* Obama touts small-business bill on campaign stop

* Thousands of miles to raise millions for Democrats

* Telling voters his plans will generate jobs

* Republicans worry over deficits, government overreach (Updates with Republican reaction)

By Patricia Zengerle

SEATTLE, Aug 17 (Reuters) - U.S. President Barack Obama pressed Senate Republicans on Tuesday to pass his $30 billion plan to help banks boost lending to small businesses, blasting the opposition for playing "political games" with a measure he says will help generate jobs.

Obama has painted Republicans as obstructionist allies of big corporate interests as he has jumped from state to state this week, traveling thousands of miles to raise millions of dollars for Democrats running for Congress and governorships in the Nov. 2 election.

He took the same tone when he stopped at a Seattle bakery to meet with small business owners and tout the bill.

"A partisan minority in the Senate has been standing in the way of giving our small business people a simple up or down vote on this bill. They won't even let it to go to vote," he told reporters.

"Small business owners ... don't have time for political games," he said.

Since the 2008 financial crisis, small businesses have found it difficult to obtain loans that would help them expand as the economy recovers from the recession.

Obama has called repeatedly for the Senate to pass the bill. He wants to show Americans he is focused on job creation, mindful that voter anxiety over the lackluster economy and the 9.5 percent unemployment rate could translate into big losses for his Democratic Party in November.

"Regardless of whatever excuses President Obama comes up with, the fact remains that his policies have created widespread uncertainty for employers, massive unemployment for Americans, and crushing debt for our kids and grandkids," House of Representatives Republican leader John Boehner said in response to Obama's criticism of Republicans in Congress.

Obama helped raise $1 million for Democrats running for Congress at a party in California on Monday night, and several hundred thousand dollars at a fundraiser in Wisconsin.

He followed up the small business event in Seattle with an appearance on Tuesday on behalf of Senator Patty Murray, who is in a tight race to retain her U.S. Senate seat, and again pressed his economic message.

"It's going to take a few years to fully dig ourselves out of this recession," Obama told an audience of several thousand people in downtown Seattle.

However, he said, he "has never been more confident" that the country is moving in the right direction.

Small businesses account for some two-thirds of job creation in the United States.

ANOTHER GOVERNMENT OVERREACH?

Before leaving for the Senate's August recess, Republicans blocked the plan to help community banks boost lending to small businesses.

Democratic leaders failed to muster the 60 votes needed to advance the measure. Republicans were upset that Democrats shut them out from amending the package, which also includes about $12 billion in tax breaks for small businesses.

Citing concerns about the mushrooming U.S. deficit, Republicans said they were worried about additional spending included in the bill.

Some Republicans have also cast the proposal as part of what they consider government overreach by the Obama administration, saying the bill would push the government into an industry -- small business lending -- that should be left to the private sector.

Obama said the Senate would bring up the plan again in mid-September when it returns from its summer break.

The House of Representatives, also on a six-week break, passed its version of the measure in June and would also have to vote on the version passed by the Senate before it could be sent to Obama to sign into law. (Editing by Mohammad Zargham)