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Home-based businesses are owned and operated by nonfederal entities, who are residents of Army installations, to offer sales or services from within their residences.

Individuals acting exclusively outside the scope of any official capacity as officers, employees or agents of the federal government are considered non-federal entities.

What are the current and past efforts of the Army?

The Army published a new directive, Army Directive 2018-29, on Dec. 17, 2018, that includes guidance for senior commanders when deciding to allow a nonfederal entity to operate home-based businesses on their installations. The goal of the policy is to provide consistency for home-based business owners as they relocate to other Army locations. The Army directive updates the regulation about how to apply for and operate a home-based business and specifies conditions that must be followed.

In addition, the Army Regulation 420-1, Army Facilities Management, Housing Management (chapter 3, page 18), defines responsibilities and prescribes procedures for processing home-based business operations.

The change in the policy is part of the Army’s larger efforts to clarify Army policy pertaining to home-based business procedures during permanent change-of-station moves. Changes to rules about home-based businesses on Army installations:

• Updates policy for applying for and operating home-based businesses.

• Requires business owners to meet all licensure and legal requirements.

• Increases senior commanders’ ability to approve requests for home-based businesses.

• Establishes a single point of entry for home-based business applications.

The directive applies to Army, Army National Guard, U.S. Army Reserve and tenant personnel operating and living on regular Army installations.

What continued efforts does the Army have planned?

The Army is developing guidelines that will help prospective business operators gain approval for home-based businesses at their present locations and at future installations. Standardizing application requirements is the goal to enhance financial readiness of Soldiers and Families.

The Army also will implement procedures to stay current on evolving technology and social media trends.

Why is this important to the Army?

Taking care of the Soldiers, Families and Army civilians is an enduring priority for the Army. The home-based business policy clarifies application and operating procedures for residents as they move from one duty station to another with their spouses.

This change in policy helps to improve financial readiness for home-based business owners who often experience financial and emotional hardship arising because of permanent change of station moves.