Supplement dated February 18, 2014

to

Prospectus dated May 14, 2013

 

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This supplement contains information which amends, supplements or modifies certain information contained in the Prospectus of HMS Income Fund, Inc. (the “Company”) dated May 14, 2013 (as so supplemented and amended, the “Prospectus”). This supplement is part of, and should be read in conjunction with, the Prospectus. The Prospectus has been filed with the Securities and Exchange Commission and is available at www.sec.gov or by calling (888) 446-3773. Capitalized terms used in this supplement have the same meanings as in the Prospectus, unless otherwise stated herein.

 

You should carefully consider the “Risk Factors” beginning on page 33 of the Prospectus before you decide to invest.

 

This supplement updates the Prospectus to reflect the Company’s update to the suitability standards in Ohio.

 

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This supplement amends the Prospectus as follows:

 

SUITABILITY STANDARDS

 

This supplement replaces the special suitability standards for Ohio on page (iii) with the following:

Ohio-It shall be unsuitable for an Ohio investor’s aggregate investment in shares of the issuer, affiliates of the issuer, and in other non-traded business development companies to exceed 10% of his or her liquid net worth. Liquid net worth is that portion of an investor's net worth (total assets exclusive of home, home furnishings and automobiles minus total liabilities) that is comprised of cash, cash equivalents and readily marketable securities.