(1) With respect to program assistance other than a government contractor loan, government-sponsored residential construction loan and loan guarantees for either of these two types of loans, certification must be obtained through the New York State Minority- and Women-Owned Business Enterprise Certification Program; provided, however, that this requirement shall be deemed to have been met if the enterprise has had its application for certification rejected by the certifying agency through its duly authorized representative 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 Director of the Governor's Office of Minority and Women's Business Development. Denial of certification on any other ground will make an applicant ineligible for program assistance. The corporation shall refer to a determination that certification is rejected on the ground that a start-up business enterprise cannot document business activity and operational control as a minority-owned business enterprise or women-owned business enterprise in any materials submitted to the president and chief executive officer and/or directors of the corporation in connection with any request for approval of the proposed assistance as a “postponement of certification determination.” 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 an minority-owned business enterprise or women-owned business enterprise, the corporation will require a completed application for certification to be submitted to the Governor's Office of Minority and Women's Business Development 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 denial of certification and the failure of the enterprise to appeal successfully the denial decision in the manner authorized pursuant to the New York State Minority- and Women-Owned Business Certification Guidelines, 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.

(2) With respect to program assistance in the form of a government contractor loan, government-sponsored residential construction loan and loan guarantees for either of these two types of loan, certification may be obtained through any authorized certification program administered by a public entity within the State, provided that at the time of application for program assistance the business enterprise has applied for certification through the New York State Minority- and Women-Owned Business Enterprise Certification Program. In addition, a recipient of program assistance in the form of a government contractor loan, government-sponsored residential construction loan or loan guarantee for either of these two types of loans must diligently pursue certification through the New York State Minority- and Women-Owned Business Enterprise Certification Program, as set forth in paragraph (1) of this subdivision, and must ultimately receive such certification as set forth in paragraph (1) of this subdivision.

(1) educational institutions; and

(2) hospitals or residential health care facilities.