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U.S. Army Tests Innovative Recruitment Offering

Army Advantage Fund offers prospective Soldiers opportunity to fund home or small business ownership; offer being tested in five markets

Survey shows appealing nature of
home and business ownership

FT. KNOX, Ky. (February 4, 2008) – The U.S. Army today announced the introduction of the Army Advantage Fund (AAF), an innovative program offering qualified recruits a considerable down payment for home ownership or seed money to start their own business.  The U.S. Army is the only branch of service currently offering this benefit.  

Qualified Soldiers enlisting in the active Army are eligible for up to $40,000 for a five-plus year enlistment, and Soldiers enlisting in a Reserve component are eligible for up to $20,000 for a five-plus year enlistment.  

Studies show home and business ownership is highly appealing to young Americans.  While recognizing the difficulty in becoming a home owner, nearly all young adults surveyed in the test markets (95%) agree that it is important for them to own a home, making it as high of a priority as having the right job skills (98%) and having a college degree (91%).

Currently in a test phase, AAF is available to qualifying enlistees in five markets – Albany, N.Y.; Cleveland; Montgomery, Ala.; San Antonio and Seattle – who have a long-term view toward their futures following service.  Availability for AAF on a national level will be based on the pilot results.

“America’s Soldiers truly are the strength of our nation, and they deserve the best support, stability and compensation available in return for their dedication to our country,” said Lt. Gen. Benjamin Freakley, Commanding General, U.S. Army Accessions Command. “The Army has a long legacy of preparing young Americans for success through skills training and education-based programs such as the GI Bill and the Army College Fund.  This new offering demonstrates the Army continues to understand what young Americans consider critical to their future."

With AAF, Soldiers have the unique opportunity to build their futures by combining the intangible strengths they gain from the values, teamwork, and skills training in their Army experience, with the very tangible benefit of a down payment on a home or the capital to start a business,“ added Lt. Gen. Freakley.

Research shows that home and small business ownership are valued by many of today’s young Americans as they offer independence and financial security. However, many of these young Americans and those who influence them understand the need for considerable professional and financial support in order to achieve these goals.

A recent survey of young Americans in the test markets shows that six in 10 young adults (60%) expect it to be more difficult for them to buy a home than their parents.  Parents and adult influencers of those surveyed show as much concern about the difficulty young adults will face when purchasing their first home (63% say more difficult).

Among all surveyed, most all view having enough money to start a small business as a big problem (79%).   More than six in 10 young adults (66%) and parents (61%) say that the funding would most likely come from a bank loan.  By taking advantage of the AAF offer, participants may be able to either reduce or eliminate altogether the need for a bank loan to start a small business.

“What we are hearing from our young people and influencers is that, although it is essential to them to establish home ownership and get started down their chosen career path, many times they question how they will be able to accomplish it,” says Lt. Gen. Freakley. “The Army recognizes these challenges, and wants to be a part of the solution by offering young adults the proper funds which will allow them to live their American Dream.”

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Media Contacts:
Douglas Smith
U.S. Army Recruiting Command
(512) 626-0164

Lt. Col. Anne Edgecomb
Office of the Chief of Public Affairs
(703) 697-5662