a top notch option would be a daiwa tatula elite spinning rod 7' med light "Meyer" model. i'd shy away from the BG for a reel as it is on the heavier side and look for a daiwa fuego LT. you can snag both of these for around $280 total.
there are a TON of other fantastic rod options in the $100-$150 price range. i'm sure you'll receive a good amount of suggestions in this thread
as far as smallmouth bass baits. berkley maxscent flat worm is hot right now, and they do get bit for sure. you'll have good luck with a tube, ned rig, small keitech swimbait, and jerkbait in most smallmouth bass fisheries.