Small and medium businesses often struggle to get loans, which slows down their growth. Banks in Argentina and Chile see SMEs as a profitable market and are finding ways to overcome obstacles to lending to them. Competition and the institutional environment play a big role in banks' decisions to lend to SMEs. Despite differences in rules and regulations, both countries' banks are focusing more on SMEs because they see them as a good opportunity for profit. Government programs could help reduce the cost of lending to SMEs.