Which of the following is one of the SBA's five criteria?

• A. Profitability
• B. Inventory Turnover
• C. Market Share
• D. Organization

Answer: (D)

The key idea is how lenders judge a small business: one important area is the organization—the strength of the business’s structure and the management team. Organization looks at how the company is set up, who leads it, and how decisions are made. A solid organizational framework and capable management increase confidence that the business can execute plans and meet obligations, including loan repayment.

Profitability, inventory turnover, and market share are valuable metrics, but they aren’t the primary five criteria SBA lenders assess in a loan decision. They reflect performance and efficiency, not the overarching organizational readiness that lenders want to see as part of the five criteria.