GENERATION INCOME PROPERTIES, INC. : entering into a material definitive agreement, creating a direct financial obligation or obligation under a registrant’s off-balance sheet arrangement, disclosure of FD settlement, financial statements and supporting documents (Form 8-K)

Item 1.01 Conclusion of a Material Definitive Agreement

At October 26, 2021, Generation Income Properties LP (the “operating company”), the operating company of Generation Income Properties, Inc.
(the “Company”), has entered into a letter of engagement with American Momentum Bank
(the “Lender”) for a $ 25 million the principal credit facility (the “Facility”) to be used for the acquisition of income producing real estate.

Borrowings under the Facility will bear interest at a floating rate equal to the Wall Street Journal prime rate, adjusted monthly, subject to a floor interest rate of 3.25% per annum. At each loan closing under the Facility, the borrower will pay the Lender a commitment fee equal to 0.50% of the applicable loan amount. Each loan will have an interest-only payment term of twenty-four months from the applicable loan closing date and all unpaid interest and principal will be due and payable in full two years from the closing date of the applicable loan. loan applicable. Each loan will be secured by the acquired property and the associated rental income and payment will be secured by the Operating partnership. David Sobelman, the Chairman of the Board, President and Chief Executive Officer of the Company, will be required to execute a non-recourse guarantee with respect to each loan which is subject to the standard “bad boy” exclusion provisions.

Each loan agreement under the facility will require the borrower to maintain a debt service coverage ratio of at least 1.50 to 1.00 over the term of the loan and will contain customary covenants, negative clauses and events of default. In the event of default, loan commitments under the Facility may be terminated and any outstanding loans, as well as accrued interest, may be declared immediately due and payable. The initial loan under the Facility must be closed no later than December 31, 2021 and all loans under the Facility must be closed within two years of the closing date of the original loan. The facility is cancellable at the option of the lender in specified circumstances, including a material adverse change in the financial condition of the company and in the event of a change in the management of the company which is unacceptable to the lender.

The foregoing description of the Installation does not purport to be complete and is subject to, and qualified in its entirety by reference to the full text of the Installation, a copy of which is filed herein as Exhibit 10.1 and is incorporated into present by reference.

Item 2.03 Creation of Direct Financial Obligations or Obligation Under an Off-Balance Sheet Arrangement of a Registrant

The information in Section 1.01 above is incorporated by reference into this Section 2.03.

Article 7.01. FD Regulation Disclosure.

At October 27, 2021, the Company issued a press release announcing the signing of the Letter of Commitment for the Facility. A copy of the press release is filed as Exhibit 99.1 of this current report on Form 8-K and is incorporated herein by reference.

The information provided in Section 7.01 of this current report on Form 8-K and in Attachment 99.1 will not be considered “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). , or otherwise subject to the responsibilities of this section, nor will such information be deemed to be incorporated by reference in any filing under the Securities Act or the Exchange Act, except as expressly provided by specific reference in such deposit.

Article 9.01. Financial statements and supporting documents.

  (d) Exhibits.




Exhibit
  No.     Description

 10.1       Commitment for $25 Million Master Credit Facility with American
          Momentum Bank dated October 26, 2021

 99.1       Press Release dated October 27, 2021

  104      Cover Page Interactive Data File (embedded within the Inline XBRL
          document)







4854-1886-2593.1

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