Small Entity Update Act

This bill requires the Securities and Exchange Commission (SEC) to regularly review and update its definition of "small entities" - which determines which businesses, nonprofits, and local governments qualify for regulatory relief under SEC rules. The SEC must study the current definition every 6 years (starting one year after enactment), report findings to Congress, and propose changes to include more qualifying entities. It also mandates annual inflation adjustments to dollar thresholds in the definition using Consumer Price Index data. This directly affects small businesses and organizations regulated by the SEC that rely on the definition for compliance flexibility.