The purpose of this study was to determine the supervision of Credit Small and Medium Enterprises in PT. Bank Pembangunan Daerah Jawa Timur Branch Pasuruan and knowing the supervision of Credit Small and Medium Enterprises in an effort to suppress credit arrears. The method used in this study is a descriptive study using a quantitative approach. This study focused on: 1) Non-performing Loans to Small and Medium Business Credit, 2) Credit Monitoring Small and Medium Enterprises conducted by means of preventive control of credit and repressive control of credit. The results showed that small and medium enterprises credit during the year 2011-2013 unstable. NPL in 2011 reached 5.54%, in the year 2012 reached 4.63% in 2013 but increased again in the amount of 6.72%.