The regulations in this subpart apply, as appropriate, to public and private entities that have loans or loan guarantees that—
    
    
        
        (a) 
         Were awarded to them before October 1986 under  section 1304 or  section 1305 of the PHS Act; and
     
    
        
        (b) 
         Are still outstanding.
     
    [59 FR 49842, Sept. 30, 1994]