diff --git a/Makefile b/Makefile
index 16e89ee2e..24708c70d 100644
--- a/Makefile
+++ b/Makefile
@@ -7,17 +7,22 @@ include tools/make/ood_versions.mk
 COMPOSE_CMD = docker compose
 WORKING_DIR := $(shell pwd)
 DOC_BUILDER_IMAGE := python:3.11-slim
+WORKING_DIR := $(shell pwd)
+CONFIG_DIR := $(WORKING_DIR)/config
 
 ENV := env OOD_IMAGE=$(OOD_IMAGE) OOD_UID=$(OOD_UID) OOD_GID=$(OOD_GID)
 
 loop_up: loop_down
-	$(ENV) $(COMPOSE_CMD) -p loop_passenger up --build || :
+	$(ENV) $(COMPOSE_CMD) -p loop_passenger up --build -d || :
 
 loop_down:
 	$(ENV) $(COMPOSE_CMD) -p loop_passenger down -v || :
 
 dev_up: dev_down
-	$(ENV) $(COMPOSE_CMD) -f docker-compose.yml -f docker/docker-local-override.yaml -p loop_passenger up --build || :
+	$(ENV) $(COMPOSE_CMD) -f docker-compose.yml -f docker/docker-local-override.yaml -p loop_passenger up --build -d
+# These must be copied not bind-mounted b/c docker will present bind-mounted files and being owned by the calling user but OOD requires that config files be owned by root when run in rails_env=production
+	docker cp $(CONFIG_DIR)/ondemand.d passenger_loop_ood:/etc/ood/config
+	docker exec -u 0 passenger_loop_ood chown -hR root:root /etc/ood/config/ondemand.d
 
 dev_down:
 	$(ENV) $(COMPOSE_CMD) -f docker-compose.yml -f docker/docker-local-override.yaml -p loop_passenger down -v || :
diff --git a/config/ondemand.d/.empty b/config/ondemand.d/.empty
new file mode 100644
index 000000000..e69de29bb
diff --git a/config/ondemand.d/loop.yml b/config/ondemand.d/loop.yml
new file mode 100644
index 000000000..2d660b790
--- /dev/null
+++ b/config/ondemand.d/loop.yml
@@ -0,0 +1,5 @@
+files_select_target:
+  endpoint: /pun/sys/loop/connect
+  label: "Send to Loop"
+  title: "Send the selected files to the OnDemand Loop application for upload"
+  icon: "fas://paper-plane"
diff --git a/docs/guide/content/development_guide/index.md b/docs/guide/content/development_guide/index.md
index b5cd41759..758d1bad5 100644
--- a/docs/guide/content/development_guide/index.md
+++ b/docs/guide/content/development_guide/index.md
@@ -12,12 +12,13 @@ make loop_build
 make dev_up
 ```
 The `make dev_up` command starts the development environment using Docker Compose with local development configuration.
-It runs in the foreground, streaming logs from all containers to your terminal.
-The shell prompt will not return until you stop the environment manually.
+It runs in the background. The shell prompt will return immediately.
 
-To stop the environment, press <kbd>Ctrl</kbd>+<kbd>C</kbd>. This will gracefully shut down all containers.
-Alternatively, in another terminal you can run: `make dev_down`
+To stop the environment, run:
 
+```bash
+make dev_down
+```
 Once the containers are running visit [https://localhost:33000/pun/sys/loop](https://localhost:33000/pun/sys/loop) and log in with the test user `ood/ood`.
 
 The documentation is organized by topic to help you find what you need quickly:
diff --git a/docs/guide/content/development_guide/local_environment.md b/docs/guide/content/development_guide/local_environment.md
index 5f55ba996..5b5f5d049 100644
--- a/docs/guide/content/development_guide/local_environment.md
+++ b/docs/guide/content/development_guide/local_environment.md
@@ -56,17 +56,19 @@ make dev_up
 ```
 
 The `make dev_up` command starts the development environment using Docker Compose with local development configuration.
-It runs in the foreground, streaming logs from all containers to your terminal.
-The shell prompt will not return until you stop the environment manually.
+It runs in the background. The shell prompt will return immediately.
 
-To stop the environment, press <kbd>Ctrl</kbd>+<kbd>C</kbd>. This will gracefully shut down all containers.
-Alternatively, in another terminal you can run: `make dev_down`
+To stop the environment, run:
+
+```bash
+make dev_down
+```
 
 #### Development vs Vanilla Environment
 
 The project provides two different targets for running the application locally:
 
-- **`make dev_up`** - **Recommended for development**. Uses additional volume mounts for local configuration and development files. This target loads both the main `docker-compose.yml` and the local override file `docker/docker-local-override.yaml`.
+- **`make dev_up`** - **Recommended for development**. Uses additional volume mounts and copies files for local configuration and development. This target loads both the main `docker-compose.yml` and the local override file `docker/docker-local-override.yaml`.
 
 - **`make loop_up`** - **Vanilla installation**. Uses only the base Docker Compose configuration without local development overrides. Use this when you need to test the application in a configuration closer to production or for troubleshooting configuration issues.