Bill · S. 2924· Senate(119-S-2924)
Small Entity Update Act
- Introduced
- 9/29/2025
- Last activity
- 9/29/2025 — Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.
- Sponsored by
- Katie Britt
- Cosponsors
- - 2 - 2
- Introduced
- In Committee
What this bill would do
The Small Entity Update Act requires the Securities and Exchange Commission to perform specific studies and rulemaking regarding the term "small entity." The Commission must conduct a study one year after enactment and every five years thereafter. These studies are intended to evaluate how the definition aligns with the Regulatory Flexibility Act and how much financial markets have grown. Based on these studies, the Commission must submit reports to Congress with recommendations to expand the number of entities covered by the definition. Finally, the Commission is tasked with revising its rules and adjusting dollar figures for inflation every five years.
Yes
Would business owners be better off under this?+5
The bill seeks to expand the number of entities that qualify for small entity protections and considerations under SEC rules.
Does this make it easier to run a small business?+5
The bill directs the SEC to study and recommend expanding the definition of 'small entity' to include more businesses.
Does this make what the government does easier for the public to see?+2
The bill requires the SEC to submit specific reports and recommendations to Congress regarding small entity definitions.
The opposite
No question was scored the opposite.
Who it would affect, and how
Potential Positive Impacts for People
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Expanding protections for more entities: The bill requires the Commission to provide recommendations on how to amend the definition to "expand the number of entities covered" (Section 2(b)(2)(B)(ii)). This could ensure that a larger number of entities are recognized under the law.
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Keeping definitions current with the economy: The study must consider "the amount by which financial markets in the United States have grown" (Section 2(b)(1)(B)). This ensures the definition of a small entity stays relevant to modern financial market conditions.
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Protecting value against inflation: The Commission is required to adjust any dollar figures in the definition to "reflect the change in the Consumer Price Index for All Urban Consumers" every five years (Section 2(d)). This helps prevent the definition from becoming outdated due to rising costs.
Potential Negative Impacts for People
- No specific negative impacts are mentioned in the provided text.
Groups and Interests Ranking
Every group the model scored this bill for, from -10 to +10. Hover a score for the reason it gave.
- Demographic And Interest Groups
- Good For Business Owners+5
- Economy And Finance
- Improves Small Business Support+5
- Governance And Ideology
- Improves Government Transparency+2
- 8/4/2026
- 1 Cosponsor added.
- 4/20/2026
- 2 Cosponsors added.
- 9/29/2025
- Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.
- 1 Cosponsor added.
- Introduced in Senate
One bill Congress.gov lists as related to this one — companions in the other chamber, earlier versions, and bills this one absorbed or was folded into.
Angela AlsobrooksDemocrat · Maryland
Andy KimDemocrat · New Jersey
David McCormickRepublican · Pennsylvania
Pete RickettsRepublican · Nebraska