<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 SUCH FINANCIAL STATEMENTS.
</LEGEND>
<MULTIPLIER> 1,000
       
<S>                             <C>
<PERIOD-TYPE>                   3-MOS
<FISCAL-YEAR-END>                          DEC-31-1997
<PERIOD-START>                             JAN-01-1997
<PERIOD-END>                               MAR-31-1997
<INVESTMENTS-AT-COST>                          110,603
<INVESTMENTS-AT-VALUE>                         115,401
<RECEIVABLES>                                        0
<ASSETS-OTHER>                                   6,165
<OTHER-ITEMS-ASSETS>                            43,711
<TOTAL-ASSETS>                                 165,277
<PAYABLE-FOR-SECURITIES>                             0
<SENIOR-LONG-TERM-DEBT>                         91,950
<OTHER-ITEMS-LIABILITIES>                        3,180
<TOTAL-LIABILITIES>                             95,130
<SENIOR-EQUITY>                                  7,343
<PAID-IN-CAPITAL-COMMON>                        55,069
<SHARES-COMMON-STOCK>                            7,343
<SHARES-COMMON-PRIOR>                            7,299
<ACCUMULATED-NII-CURRENT>                            0
<OVERDISTRIBUTION-NII>                           (975)
<ACCUMULATED-NET-GAINS>                              0
<OVERDISTRIBUTION-GAINS>                             0
<ACCUM-APPREC-OR-DEPREC>                         4,798
<NET-ASSETS>                                    69,147
<DIVIDEND-INCOME>                                  270
<INTEREST-INCOME>                                3,342
<OTHER-INCOME>                                     122
<EXPENSES-NET>                                   2,825
<NET-INVESTMENT-INCOME>                            909
<REALIZED-GAINS-CURRENT>                           319
<APPREC-INCREASE-CURRENT>                          728
<NET-CHANGE-FROM-OPS>                            1,956
<EQUALIZATION>                                       0
<DISTRIBUTIONS-OF-INCOME>                        2,473
<DISTRIBUTIONS-OF-GAINS>                             0
<DISTRIBUTIONS-OTHER>                                0
<NUMBER-OF-SHARES-SOLD>                              8
<NUMBER-OF-SHARES-REDEEMED>                          0
<SHARES-REINVESTED>                                 36
<NET-CHANGE-IN-ASSETS>                             827
<ACCUMULATED-NII-PRIOR>                            270 
<ACCUMULATED-GAINS-PRIOR>                            0
<OVERDISTRIB-NII-PRIOR>                              0
<OVERDIST-NET-GAINS-PRIOR>                           0
<GROSS-ADVISORY-FEES>                              745
<INTEREST-EXPENSE>                               1,933
<GROSS-EXPENSE>                                  2,825
<AVERAGE-NET-ASSETS>                            68,735
<PER-SHARE-NAV-BEGIN>                             8.54
<PER-SHARE-NII>                                   0.12
<PER-SHARE-GAIN-APPREC>                           0.14
<PER-SHARE-DIVIDEND>                              0.33
<PER-SHARE-DISTRIBUTIONS>                         0.00
<RETURNS-OF-CAPITAL>                              0.00
<PER-SHARE-NAV-END>                               8.60
<EXPENSE-RATIO>                                   0.04
<AVG-DEBT-OUTSTANDING>                          91,275
<AVG-DEBT-PER-SHARE>                             12.34
        

</TABLE>