Company: PRIF-PJ
Filing Date: 2025-03-26
Form Type: N-2
Source: 0001554625-25-000027
Chunk: 15

Company: Priority Income Fund, Inc.
Filing Date: 2025-03-26
Form: N-2
Chunk 15
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, including the typical risks associated with leverage and could adversely affect our business, financial condition and results of operations.

• Our borrowings and preferred stock may increase the potential for loss on amounts invested in us and, therefore, the risk of investing in us.

• Changes in interest rates may affect our cost of capital and net investment income.

• Holders of any preferred stock we issue have the right to elect members of our Board of Directors and class voting rights on certain matters.

U.S. Federal Income Tax Risks

• We will be subject to corporate-level U.S. federal income tax if we are unable to qualify as a RIC under Subchapter M of the Code or to satisfy RIC distribution requirements.

• We may have difficulty paying our required distributions if we recognize income before or without receiving cash representing such income.

• If we do not qualify as a “publicly offered regulated investment company,” as defined in the Code, you will be taxed as though you received a distribution of some of our expenses.

• We may in the future choose to pay dividends in part in our own stock, in which case you may be required to pay tax in excess of the cash you receive.

See “Risk Factors” beginning on page 22and the other information included in this prospectus for a discussion of factors you should carefully consider before deciding to invest in our Series M Term Preferred Stock.

#### Investment Strategy
Our investment objective is to generate current income and, as a secondary objective, long-term capital appreciation. We seek to achieve our investment objective by investing, under normal circumstances, at least 80% of our total assets, or net assets plus borrowings, in Senior Secured Loans, with an emphasis on current income. Our investments may take the form of the purchase of Senior Secured Loans (either in the primary or secondary markets) or through investments in entities that in turn own a pool of Senior Secured Loans. This investment objective may be changed by our Board of Directors if we provide our stockholders with at least 60 days prior notice. We may invest in Senior Secured Loans directly or in any security issued by a CLO to implement our investment objective but have invested primarily by directly purchasing (either in the primary or secondary markets) the equity and junior debt tranches of CLOs. Structurally, CLOs are entities that are formed to manage a portfolio of Senior Secured Loans. The Senior Secured Loans within a CLO are limited to Senior Secured Loans which meet

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