The Army has initiated a test program, called the Army Advantage Fund, which offers recruits a down payment for home ownership or seed money to start their own businesses. The program, which began Feb. 4, is being tested in five recruiting areas. Whether or not the program will later be expanded nation-wide, depends on the results of the test.
The five recruiting areas are:
• Albany, N.Y.
• Cleveland, Ohio
• Montgomery, Ala.
• San Antonio, Texas
• Seattle, Wash.
The "Army Advantage Fund" offers those enlisting in the active Army up to $40,000 for a five-plus year enlistment. Recruits enlisting in the Reserve component are eligible for up to $20,000 for a five-plus year enlistment. The incentive is paid at the end of the enlistment period.
To be eligible, a recruit must enlist in what the Army calls a "critical MOS" (an enlisted job that has a significant man-power shortage) as follows:
- $25,000 for an enlistment of three years
- $35,000 for an enlistment of four years
- $40,000 for an enlistment of five plus years
To recieved the funds for starting a business, the individual must obtain a tax number and submit a business plan through the Small Business Administration. Additionally, if a member elects to re-enlist on active duty, following their initial term of service, they must wait until they leave active duty before they are eligible to receive the funds.
Those who wish to use the program for a home purchase must show proof of owning or buying a home. The money can be used for a primary residence or property investment.
