Secretary Geithner, thank you for testifying in front of this committee today.  Each passing day paints a clearer picture of the stark economic challenges we currently face – just in my home state of Rhode Island, our unemployment is at 10.3 percent, we have seen a sharp contraction in manufacturing output, home values remain in decline and millions of properties continue into foreclosure nationwide.

At the center of this crisis are our capital and credit markets, which have become virtually paralyzed in the wake of the subprime mortgage meltdown.  In an attempt to address this, Congress has appropriated hundreds of billions of dollars for the Troubled Asset Relief Program (TARP) and the Recovery Act.  We will now be considering a request for an additional $250 billion contingent reserve for further financial stabilization in FY10.

It appears very clear to me that one of the key drivers of our economy is small business, as is the case in Rhode Island.  And yet the media has been dominated by reports of relief to our country’s financial and manufacturing giants.

1. Can you please take this opportunity to specifically outline how the tax relief set forth in the budget will impact our nation’s small businesses? 

2. What percentage of small businesses will see their taxes reduced under this plan?

You just recently announced a new “Financial Stability Plan” to provide up to $1 trillion in financing capacity.  While I am sure there are many details that still need to be worked out, I am very interested in learning more about how this plan will be used to leverage financing for small businesses.

3. What programmatic steps will be taken and investments made to restore liquidity to the frozen secondary credit markets and increase SBA lending – particularly within the SBA 7(a) loan program?

4. How much small business lending is expected to be leveraged under these initiatives?

5. Broadly speaking, when do you anticipate we will start to see an impact of the recovery package that Congress passed last month?