(a) The corporation shall provide program assistance to beneficiaries directly or through intermediaries, as follows:

1. (1) Recipient of funds pursuant to a linked deposit shall be an intermediary that is an eligible banking organization proposing to make program loans, in accordance with section 4240.5 of this Part, to beneficiaries that are small businesses or certified minority and/or women-owned business enterprises.
2. (2) A recipient of program assistance in the form of a government contractor loan shall be a beneficiary that is a small business or a certified minority and/or women-owned business enterprise proposing to undertake a project that meets the criteria set forth in section 4240.6 of this Part.
3. (3) A recipient of program assistance in the form of a business development loan shall be a beneficiary that is small business or a certified minority and/or women-owned business enterprise proposing to undertake a project that meets the criteria set forth in section 4240.7 of this Part.
4. (4) A recipient of program assistance in the form of a franchise loan shall be a beneficiary that is a small business or a certified minority and/or women-owned business enterprise proposing to undertake a project that meets the criteria set forth in section 4240.8 of this Part.

5. (5) A recipient of program assistance in the form of a loan guaranty shall be an intermediary that is an eligible banking organization proposing to make program loans, in accordance with section 4240.9 of this Part, to beneficiaries that are small businesses or certified minority and/or women-owned business enterprises.

   (b) Certification.

6. (1) An enterprise that applies for program assistance may obtain certification through any certification program administered by the State Certification Director or a certifying agency.
7. (2) An enterprise shall be deemed to be a certified minority and/or women-owned business enterprise if the enterprise has had its application for certification rejected by the State Certification Director on the ground that such enterprise is a start up business and is ineligible for certification until such time as it can document business activity and operational control as a minority-owned business enterprise or as a women-owned business enterprise as evidenced by the written determination of the State Certification Director. Denial of certification on any ground will make an applicant ineligible for any form of program assistance. In any such instance where financial assistance is approved and certification is rejected on the ground that the start up enterprise cannot document business activity and operational control as a minority- owned business enterprise or women-owned business enterprise, the corporation will require a completed application for certification to be submitted to the State Certification Director within one year from the date on which the corporation makes its first disbursement of funds in connection with the project. The failure to so submit an application for certification, the rejection of such application, or the denial of certification and the failure of the enterprise to appeal successfully the denial decision in the manner authorized pursuant to the certification guidelines published by the State Certification Director at 9 NYCRR Part 544, as in effect from time to time, shall constitute a default by the enterprise. Such default shall release the corporation from all obligations with respect to its assistance under the program and all amounts disbursed or otherwise paid out or deposited by the corporation in connection with any financial assistance under the program shall become immediately due and payable to the corporation.

(c) The following enterprises are ineligible for program assistance:

1. (1) educational institutions; and
2. (2) hospitals or residential health care facilities.