----

----

----

| x | ANNUAL      REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF      1934 |
|---|------------------------------------------------------------------------------------------------|

| o | TRANSITION      REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF      1934 |
|---|----------------------------------------------------------------------------------------------------|

|   | Commission      File No. 814-00735 |   |
|--------|-----------------------------------------|--------|

| Delaware                                                                |   | 20-5951150                                       |
|-------------------------------------------------------------------------|--------|--------------------------------------------------|
| (State      or other jurisdiction ofincorporation      or organization) |   | (I.R.S.      EmployerIdentification      Number) |

|   | (Registrant’s      telephone number, including area code) |   |
|--------|-----------------------------------------------------------------|--------|

|                                          |   |                                      |
|-----------------------------------------------|--------|-------------------------------------------|
| Title      ofeach      class                  |   | Name      of exchange on which registered |
| Common      Shares, par value $0.01 per share |   | The      NASDAQ Global SelectMarket       |

|   | Securities      registered pursuant to Section 12(g) of the Act: None |   |
|--------|----------------------------------------------------------------------------|--------|

| Large accelerated filer o |    | Accelerated filer x |    | Non-accelerated filer o                                          |    | Smaller Reporting Company o |
|------------------------------------------|--------------|-------------------------------|--------------|----------------------------------------------------------------------------|--------------|--------------------------------------------|
|                                     |    |                          |    | (Do not check if asmaller reporting company) |    |                                       |

| The      number of outstanding shares of common stock of the registrant as      of March 16, 2009 was21,570,869. |
|----------------------------------------------------------------------------------------------------------------------------|

----

----

| Item 15. | Exhibits      and Financial Statement Schedules |
|---------------|-------------------------------------------------|

| Balance      Sheets as of December 31, 2008 and December 31, 2007                                                                                                                           |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                                                                        |
| Statements      of Operations for the years ended December 31, 2008,  December      31, 2007 and for the period from December 11, 2006 (inception) through      December 31, 2006 |
|                                                                                                                                                                                        |
| Statements      of Changes in Net Assets for the years ended December 31, 2008, December      31, 2007 and for the period from December 11, 2006 (inception) through      December 31, 2006 |
|                                                                                                                                                                                        |
| Statements      of Cash Flows for the years ended December 31, 2008, December 31, 2007 and      for the period from December 11, 2006 (inception) through December 31,      2006            |
|                                                                                                                                                                                        |
| Schedules      of Investments as of December 31, 2008 and December 31,    2007                                                                                                              |
|                                                                                                                                                                                        |
| Financial      Highlights for the years ended December 31, 2008, December 31, 2007 and      for the period from December 11, 2006 (inception) through December 31,      2006                |
|                                                                                                                                                                                        |
| Notes      to Financial Statements                                                                                                                                                          |

----

| ExhibitNumber   |    | Description                                                                                                             |
|-----------------|--------------|-------------------------------------------------------------------------------------------------------------------------|
|   3.1 |    | Form      of Certificate of Incorporation of Kohlberg Capital Corporation (the      “Company”). (1)         |
|            |         |
|   3.2 |    | Form      of Bylaws of the Company. (2)                                                                                 |
|            |         |
|   4.1 |    | Specimen      Certificate of the Company’s common stock, par value $0.01 per share.      (1)                      |
|            |         |
|   4.2 |    | Form      of Registration Rights Agreement. (3)                                                                         |
|            |         |
|   4.3 |    | Form      of Dividend Reinvestment Plan. (3)                                                                            |
|            |         |
| 10.1            |    | Form      of the Amended and Restated 2006 Equity Incentive Plan. (9)                                                   |
|            |         |
| 10.2            |    | Form      of Company Non-Qualified Stock Option Certificate. (3)                                                        |
|            |         |
| 10.3            |    | Form      of Custodian Agreement by and among Kohlberg Capital Corporation and U.S.      Bank National Association. (3) |
|            |         |
| 10.4            |    | Form      of License and Referral Agreement between the Company and Kohlberg &      Company, LLC. (1)               |
|            |         |
| 10.5            |    | Form      of Overhead Allocation Agreement between the Company and Katonah Debt      Advisors, LLC. (3)                 |
|            |         |
| 10.6            |    | Form      of Employment Agreement between the Company and Dayl W. Pearson. (3)                                          |
|            |         |
| 10.7            |    | Form      of Employment Agreement between the Company and Michael I. Wirth. (3)                                         |
|            |         |
| 10.8            |    | Form      of Employment Agreement between the Company and R. Jon Corless. (3)                                           |
|            |         |
| 10.9            |    | Form      of Employment Agreement between the Company and E.A. Kratzman.      (3)                                       |
|            |         |
| 10.10           |    | Form      of Employment Agreement between Katonah Debt Advisors and E.A.      Kratzman.      (3)                        |
|            |         |
| 10.11           |    | Form      of Indemnification Agreement for Officers and Directors of the Company.      (4)                              |

| 10.12  |    | Execution      Copy of Loan Funding and Servicing Agreement dated as of February 14,      2007, by and among Kohlberg Capital Funding LLC I, Kohlberg Capital      Corporation, each of the conduit lenders and institutional lenders from      time to time party thereto, each of the lender agents from time to time      party thereto, BMO Capital Markets Corp., as the Agent, Lyon Financial      Services, Inc. (d/b/a U.S. Bank Portfolio Services), as the Backup      Services, and U.S. Bank National Association, as Trustee. (5) |
|--------|--------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |         |
| 10.13  |    | Execution      Copy of First Amendment to Loan Funding and Servicing Agreement, dated as      of May 30, 2007, by and among Kohlberg Capital Funding LLC I, the Company,      each of the conduit lenders and institutional lenders from time to time      party thereto, each of the lender agents from time to time party thereto,      BMO Capital Markets Corp., as the Agent, Lyon Financial Services, Inc.      (d/b/a U.S. Bank Portfolio Services), as the Backup Servicer, and U.S.      Bank National Association, as Trustee. (6)   |

----

| 10.14  |    | Execution      Copy of Second Amendment to Loan Funding and Servicing Agreement, dated as      of October 1, 2007, by and among Kohlberg Capital Funding LLC I, the      Company, each of the conduit lenders and institutional lenders from time      to time party thereto, each of the lender agents from time to time party      thereto, BMO Capital Markets Corp., as the Agent, Lyon Financial Services,      Inc. (d/b/a U.S. Bank Portfolio Services), as the Backup Servicer, and      U.S. Bank National Association, as Trustee. (6)  |
|--------|--------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |         |
| 10.15  |    | Execution      Copy of Third Amendment to Loan Funding and Servicing Agreement, dated as      of November 21, 2007, by and among Kohlberg Capital Funding LLC I, the      Company, each of the conduit lenders and institutional lenders from time      to time party thereto, each of the lender agents from time to time party      thereto, BMO Capital Markets Corp., as the Agent, Lyon Financial Services,      Inc. (d/b/a U.S. Bank Portfolio Services), as the Backup Servicer, and      U.S. Bank National Association, as Trustee.      (8) |
|   |         |
| 10.16  |    | Execution      Copy of Purchase and Sale Agreement dated as of February 14, 2007, by and      among Kohlberg Capital Funding LLC I and the Company. (7)                                                                                                                                                                                                                                                                                                                                                                                                |
|   |         |
| 10.17  |    | Form      of 2008 Non-Employee Director Plan. (10)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|   |         |
| 21.1   |    | List      of Subsidiaries. *                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|   |         |
| 23.1   |    | Consent      of Deloitte & Touche LLP, Independent Registered Public Accounting      Firm. (11)                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
|   |         |
| 31.1   |    | Chief      Executive Officer Certification Pursuant to Rule 13a-14 of the Securities      Exchange Act of 1934, as adopted pursuant to Section 302 of the      Sarbanes-Oxley Act of 2002. *                                                                                                                                                                                                                                                                                                                                                           |
|   |         |
| 31.2   |    | Chief      Financial Officer Certification Pursuant to Rule 13a-14 of the Securities      Act of 1934, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act      of 2002. *                                                                                                                                                                                                                                                                                                                                                                    |
|   |         |
| 32.1   |    | Chief      Executive Officer Certification pursuant to Section 1350, Chapter 63 of      Title 18, United States Code, as adopted pursuant to Section 906 of the      Sarbanes-Oxley Act of 2002. *                                                                                                                                                                                                                                                                                                                                                     |
|   |         |
| 32.2   |    | Chief      Financial Officer Certification pursuant to Section 1350, Chapter 63 of      Title 18, United States Code, as adopted pursuant to Section 906 of the      Sarbanes-Oxley Act of 2002. *                                                                                                                                                                                                                                                                                                                                                     |

----

| (1) | Incorporated      by reference to the exhibit included in Pre-Effective Amendment No. 1      on Form N-2, as filed on October 6, 2006 (File      No. 333-136714). |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2) | Incorporated      by reference to the exhibit included on Form N-2, as filed on      March 16, 2007 (FileNo. 333-141382). |
|-----|-------------------------------------------------------------------------------------------------------------------------------------|

| (3) | Incorporated      by reference to the exhibit included in Pre-Effective Amendment No. 2      on Form N-2, as filed on November 20, 2006 (File      No. 333-136714). |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (4) | Incorporated      by reference to the exhibit included in Pre-Effective Amendment No. 3      on Form N-2, as filed on November 24, 2006 (File      No. 333-136714). |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (5) | Incorporated      by reference to Exhibit 10.15 of the Annual Report on Form 10-K, as filed      on March 29, 2007 (File  No. 814-00735). |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------|

| (6) | Incorporated      by reference to the exhibit included in Pre-Effective Amendment No. 1      on Form N-2, as filed on October 18, 2007 (File      No. 333-146190). |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (7) | Incorporated      by reference to Exhibit 10.2 of the Current Report on Form 8-K, as filed      on February 16, 2007 (File  No. 814-00735). |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------|

| (8) | Incorporated      by reference to Exhibit 10.15 of the Annual Report on Form 10-K, as filed      on March 14, 2008 (File  No. 814-00735). |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------|

| (9) | Incorporated      by reference to Exhibit 10.1 of the Current Report on Form 8-K, as filed      on June 19, 2008 (File No.814-00735). |
|-----|---------------------------------------------------------------------------------------------------------------------------------------|

| (10) | Incorporated      by reference to the exhibit included in Pre-Effective Amendment No. 1      on Form N-2, as filed on June 30, 2008 (File      No. 333-151268). |
|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (11) | Incorporated      by reference to the Exhibit 23.1 of the Annual Report on Form 10-K, as      filed on March 16, 2009 (File No.      814-00735). |
|------|-------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|                      |   | KOHLBERG      CAPITAL CORPORATION |
|---------------------------|--------|-----------------------------------|
|                      |   |                              |
| Date:      March 25, 2009 |   | By                                | /s/    Dayl      W. Pearson |
|                      |   |                              | Dayl      W. PearsonPresident      and Chief ExecutiveOfficer |

----