Small Entity Update Act

This bill requires the Securities and Exchange Commission (SEC) to study and update its definition of 'small entity' for purposes of the Regulatory Flexibility Act, and to adjust that definition for inflation every five years. Sec. 2, Studies, reports, and rules regarding small entities: The SEC must conduct a study within one year of enactment and again five years later on how it defines 'small entity,' considering whether the current definition aligns with the Regulatory Flexibility Act's goals, how much U.S. financial markets have grown since the last update, and how to ensure a meaningful number of entities qualify. The SEC must report the study results and recommendations to Congress on how to amend the definition to expand coverage. After each study, the SEC must revise its rules through public notice and comment to match the study results. After issuing final rule revisions, and every five years thereafter, the SEC must adjust any dollar figures in the small entity definition based on changes in the Consumer Price Index for All Urban Consumers.