This study assessed environmental concerns of selected small and medium enterprises (SME) of BRAC Bank. Data were collected in January-February 2006 through in-depth interview, focus group discussion, and observation. The study included 15 types of SMEs. These include textile and dyeing, leather and leather products, plastic product, hotel and restaurant, hospital/clinic, poultry, rice mill, oil mill, bakery, wood and wood products, cosmetics and toiletries, saw mill, engineering metal products, printing and packaging, and dairy. Environmental assessment was done based on standard procedures used in different project assessment. Findings show that most of the SMEs studied did not follow any environmental guidelines and/or regulation. Some recommendations are made based on findings that include environmental consideration for new enterprise, its location, process flow, etc. according to environmental guidelines.