<TABLE> <S> <C>

<ARTICLE> 6
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM ALLIED
CAPITAL CORPORATION AND SUBSIDIARIES CONSOLIDATED BALANCE SHEET AND
CONSOLIDATED STATEMENTS OF OPERATIONS, CHANGES IN NET ASSETS, AND CASH FLOWS
AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO FORM 10-Q FOR THE NINE MONTHS 
ENDED SEPTEMBER 30, 1997.
</LEGEND>
<MULTIPLIER> 1,000
       
<S>                             <C>
<PERIOD-TYPE>                   9-MOS
<FISCAL-YEAR-END>                          DEC-31-1997
<PERIOD-START>                             JAN-01-1997
<PERIOD-END>                               SEP-30-1997
<INVESTMENTS-AT-COST>                          114,370
<INVESTMENTS-AT-VALUE>                         123,855
<RECEIVABLES>                                        0
<ASSETS-OTHER>                                   3,141
<OTHER-ITEMS-ASSETS>                            41,862
<TOTAL-ASSETS>                                 168,858
<PAYABLE-FOR-SECURITIES>                             0
<SENIOR-LONG-TERM-DEBT>                         92,770
<OTHER-ITEMS-LIABILITIES>                        3,153
<TOTAL-LIABILITIES>                             95,923
<SENIOR-EQUITY>                                  7,732
<PAID-IN-CAPITAL-COMMON>                        60,114
<SHARES-COMMON-STOCK>                            7,732
<SHARES-COMMON-PRIOR>                            7,299
<ACCUMULATED-NII-CURRENT>                            0
<OVERDISTRIBUTION-NII>                         (4,045)
<ACCUMULATED-NET-GAINS>                              0
<OVERDISTRIBUTION-GAINS>                             0
<ACCUM-APPREC-OR-DEPREC>                         9,485
<NET-ASSETS>                                    71,935
<DIVIDEND-INCOME>                                  811
<INTEREST-INCOME>                               10,652
<OTHER-INCOME>                                     378
<EXPENSES-NET>                                   9,207
<NET-INVESTMENT-INCOME>                          2,634
<REALIZED-GAINS-CURRENT>                           838
<APPREC-INCREASE-CURRENT>                        5,415
<NET-CHANGE-FROM-OPS>                            8,887
<EQUALIZATION>                                       0
<DISTRIBUTIONS-OF-INCOME>                        7,622
<DISTRIBUTIONS-OF-GAINS>                             0
<DISTRIBUTIONS-OTHER>                                0
<NUMBER-OF-SHARES-SOLD>                            381
<NUMBER-OF-SHARES-REDEEMED>                          0
<SHARES-REINVESTED>                                 52
<NET-CHANGE-IN-ASSETS>                           3,615
<ACCUMULATED-NII-PRIOR>                            270 
<ACCUMULATED-GAINS-PRIOR>                            0 
<OVERDISTRIB-NII-PRIOR>                              0 
<OVERDIST-NET-GAINS-PRIOR>                           0 
<GROSS-ADVISORY-FEES>                            2,297
<INTEREST-EXPENSE>                               5,869
<GROSS-EXPENSE>                                  9,207
<AVERAGE-NET-ASSETS>                            70,128
<PER-SHARE-NAV-BEGIN>                             8.54
<PER-SHARE-NII>                                   0.34
<PER-SHARE-GAIN-APPREC>                           0.81
<PER-SHARE-DIVIDEND>                              1.02
<PER-SHARE-DISTRIBUTIONS>                         0.00
<RETURNS-OF-CAPITAL>                              0.00
<PER-SHARE-NAV-END>                               8.53
<EXPENSE-RATIO>                                   0.13
<AVG-DEBT-OUTSTANDING>                          91,685
<AVG-DEBT-PER-SHARE>                             11.86
        

</TABLE>