Summary

Directs the Securities and Exchange Commission to define and regularly review what counts as a “small entity,” study that definition, report findings and recommendations to Congress, and update Commission rules as needed. The SEC must complete an initial study within 1 year of enactment, repeat the study every 5 years, and adjust any dollar-threshold definitions for inflation every 5 years after final rule changes.

Key Points

• Directs the SEC to define the term "small entity" for its rules and programs.
• Requires an initial SEC study and report to Congress within 1 year of enactment.
• Mandates a repeat study and report every 5 years.
• Requires the SEC to revise its rules as needed based on study findings and recommendations.
• Requires dollar-thresholds that identify small entities to be adjusted for inflation every 5 years after final rule changes.
• Does not set specific monetary thresholds or create new funding; rule details and dollar amounts are determined by the SEC.
• Aims to keep the small-entity definition and related regulatory relief current with economic conditions.

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