In general

Section 558 of title 5, United States Code, is amended by adding at the end the following:

(d)Before imposing any sanction on a small business (as such term is defined in section 601 of title 5, United States Code, and including any business with a market capitalization of $7,000,000 or less in average annual receipts, or any business that is classified as a mining or manufacturing business under the North American Industrial Classification System that has 500 employees or less) for any violation of a rule or pursuant to an adjudication, an agency shall— (1)not later than 10 business days after the date on which the agency determines that a sanction may be imposed on the small business, provide notice to the small business that the small business may be subject to a sanction at the end of the grace period described in paragraph (2); (2)defer any further action for a period of not less than 6 months, which shall be extended by an additional period of 3 months on application by the small business demonstrating reasonable efforts made in good faith to remedy the violation or other conduct giving rise to the sanction; (3)make a further determination after the period described in paragraph (2) as to whether or not the small business would still be subject to the sanction as of the end of that period; and (4)if the determination under paragraph (3) is that the small business would not be subject to the sanction, waive the sanction. (e)Nothing in subsection (d) shall be contrued to prevent a small business from appealing any sanction imposed in accordance with the procedures of the agency, or from seeking review under chapter 7 of this title.