S. 2924 — Small Entity Update Act

This section defines terms for purposes of its provisions and directs the Securities and Exchange Commission (SEC) to study its definition of small entity (i.e., as used in the Regulatory Flexibility Act, which requires agencies to analyze regulatory impacts on small businesses, organizations, and governmental jurisdictions) not later than one year after enactment and every five years thereafter. The study must assess (1) alignment of the current definition with the Regulatory Flexibility Act's findings and declarations, (2) U.S. financial market growth since the SEC's last amendment of the definition, if applicable, and (3) how to define the term to ensure a meaningful number of entities qualify. This section further requires the SEC to submit a report to Congress with study results and detailed recommendations to amend the definition for consistency and to expand entity coverage; revise its rules consistent with study results, subject to notice and comment; and, after those revisions and every five years thereafter, adjust dollar figures in the definition to reflect changes in the Consumer Price Index for All Urban Consumers.