The private sector in Mongolia has flourished since its transition to the market economy, and SMEs by far the largest in numbers. Small and Medium-Scaled Enterprises (SMEs) have played a significant role in employment and output. Because nominal lending rate remains high and long-term credit is lacking, the companies, in particular SMEs have been suffering from a lack of long-term finances for investments. This project have been providing a credit line for SMEs development and environmental protection with the view to ensuring sustained economic growth in Mongolia.