Every finite dimensional unitary projective representation of $SU(2)$ is linear. It's because $SU(2)$ is simply connected and it's a key fact to classification of $SO(3)$ projective representation: $1 \to \mathbf{Z}_2 \to SU(2) \to SO(3) \to 1$ is exact sequence, i.e., $SU(2)$ is a central extension of $SO(3)$ (there is a relation with spin in physics). See Bargmann's paper, section 3.
Edit: ok, it's not linear, it's equivalente to a linear representation (in the sense that you can choose another representatives to $PGL(V)$ in order to make $\rho: G \to GL(V)$ a group homomorphism). In another terms, there is a global associated 2-cocycle that is cohomologous to the trivial one. We need the topological hypothesis to globalizate the cocycles and representatives. In general, all finite dimensional unitary projective representation are (equivalente to) linear in a neighborhood of identity $e$. If $G$ is path connected and simples connected we can globalizate it.