Eligible participants receive LRAP benefits directly in the form of six-month loans.  At the completion of each six-month loan, the award is granted 100% forgiveness. The amount awarded is 100% of a participant’s need, based on the LRAP calculation.  Since each award is provided as a loan, with a legally binding master promissory note, and LRAP participants are employed by a non-profit or government agency, when the loan is forgiven it is not considered a taxable event by the IRS.