<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 QUARTER ENDED
JUNE 30, 1997.
</LEGEND>
<MULTIPLIER> 1,000
       
<S>                             <C>
<PERIOD-TYPE>                   6-MOS
<FISCAL-YEAR-END>                          DEC-31-1997
<PERIOD-START>                             JAN-01-1997
<PERIOD-END>                               JUN-30-1997
<INVESTMENTS-AT-COST>                          118,766
<INVESTMENTS-AT-VALUE>                         124,815
<RECEIVABLES>                                        0
<ASSETS-OTHER>                                   3,655
<OTHER-ITEMS-ASSETS>                            40,461
<TOTAL-ASSETS>                                 168,931
<PAYABLE-FOR-SECURITIES>                             0
<SENIOR-LONG-TERM-DEBT>                         95,450
<OTHER-ITEMS-LIABILITIES>                        2,944
<TOTAL-LIABILITIES>                             98,394
<SENIOR-EQUITY>                                  7,367
<PAID-IN-CAPITAL-COMMON>                        55,367
<SHARES-COMMON-STOCK>                            7,367
<SHARES-COMMON-PRIOR>                            7,299
<ACCUMULATED-NII-CURRENT>                            0
<OVERDISTRIBUTION-NII>                         (2,058)
<ACCUMULATED-NET-GAINS>                              0
<OVERDISTRIBUTION-GAINS>                             0
<ACCUM-APPREC-OR-DEPREC>                         6,047
<NET-ASSETS>                                    69,537
<DIVIDEND-INCOME>                                  540
<INTEREST-INCOME>                                7,038
<OTHER-INCOME>                                     290
<EXPENSES-NET>                                   5,781
<NET-INVESTMENT-INCOME>                          2,087
<REALIZED-GAINS-CURRENT>                           614
<APPREC-INCREASE-CURRENT>                        1,977
<NET-CHANGE-FROM-OPS>                            4,678
<EQUALIZATION>                                       0
<DISTRIBUTIONS-OF-INCOME>                        5,031
<DISTRIBUTIONS-OF-GAINS>                             0
<DISTRIBUTIONS-OTHER>                                0
<NUMBER-OF-SHARES-SOLD>                             32
<NUMBER-OF-SHARES-REDEEMED>                          0
<SHARES-REINVESTED>                                 36
<NET-CHANGE-IN-ASSETS>                           1,217
<ACCUMULATED-NII-PRIOR>                            270 
<ACCUMULATED-GAINS-PRIOR>                            0
<OVERDISTRIB-NII-PRIOR>                              0
<OVERDIST-NET-GAINS-PRIOR>                           0
<GROSS-ADVISORY-FEES>                            1,527
<INTEREST-EXPENSE>                               3,918
<GROSS-EXPENSE>                                  5,781
<AVERAGE-NET-ASSETS>                            68,929
<PER-SHARE-NAV-BEGIN>                             8.54
<PER-SHARE-NII>                                   0.28
<PER-SHARE-GAIN-APPREC>                           0.35
<PER-SHARE-DIVIDEND>                              0.66
<PER-SHARE-DISTRIBUTIONS>                         0.00
<RETURNS-OF-CAPITAL>                              0.00
<PER-SHARE-NAV-END>                               8.62
<EXPENSE-RATIO>                                   0.08
<AVG-DEBT-OUTSTANDING>                          93,025
<AVG-DEBT-PER-SHARE>                             12.56
        

</TABLE>