UNITED STATES SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549
--------------------------------------------------------------------------------
                                    FORM 10-K

[X]  Annual Report Pursuant to Section 13 or 15(d) of the Securities Exchange
     Act of 1934

                  For the fiscal year ended December 31, 2006

[ ] Transition Report Pursuant to Section 13 or 15(d) of the Securities
    Exchange Act of 1934

            For the transition period from            to            .
                                           ----------    ----------

                        Commission File Number 033-89506

                         BERTHEL GROWTH & INCOME TRUST I
              ----------------------------------------------------
             (Exact name of Registrant as specified in its charter)

           Delaware                                     52-1915821
 ------------------------------              ----------------------------------
(State or other jurisdiction of             (I.R.S. Employer Identification No.)
 incorporation or organization)

                          701 Tama Street, Marion, Iowa           52302
                     --------------------------------------      --------
                    (Address of principal executive offices)    (Zip Code)

       Registrant's telephone number, including area code: (319) 447-5700
                                                           --------------

        Securities registered pursuant to Section 12(b) of the Act: NONE

           Securities registered pursuant to Section 12(g) of the Act:

                          Shares of Beneficial Interest
                                 --------------
                                (Title of Class)

Indicate by check mark if the registrant is a well-known seasoned issuer, as
defined in Rule 405 of the Securities Act.          [ ] Yes   [X] No

Indicate by check mark if the registrant is not required to file reports
pursuant to Section 13 or Section 15(d) of the Act. [ ] Yes   [X] No

Indicate by check mark whether the Registrant (1) has filed all reports required
to be filed by Section 13 or 15 (d) of the Securities Exchange Act of 1934
during the preceding 12 months (or for such shorter period that the Registrant
was required to file such reports), and (2) has been subject to such filings
requirements for the past 90 days.                  [X] Yes   [ ] No

Indicate by check mark if disclosure of delinquent filers pursuant to Item 405
of Regulation S-K is not contained herein, and will not be contained, to the
best of Registrant's knowledge, in definitive proxy or information statements
incorporated by reference in Part III of this Form 10-K or any amendment to this
Form 10-K.   [X]

Indicate by check mark whether the registrant is a large accelerated filer, an
accelerated filer, or a non-accelerated filer. See definition of "accelerated
filer and large accelerated filer" in Rule 12b-2 of the Exchange Act. (Check
one):
Large accelerated filer [ ]  Accelerated filer [ ]  Non-accelerated filer [X]

Indicate by check mark whether the registrant is a shell company (as defined in
Rule 12b-2 of the Act).
         [ ] Yes          [X] No

As of June 30, 2006, 10,541 Shares of Beneficial Interest were issued and
outstanding with an aggregate market value of $-0- at that time. As of February
1, 2007, 10,541 Shares of Beneficial Interest were issued and outstanding.

                            EXHIBIT INDEX AT PAGE 37

<PAGE>


                         BERTHEL GROWTH & INCOME TRUST I
                          2006 FORM 10-K ANNUAL REPORT
                                TABLE OF CONTENTS


                                                                            Page
                                     PART I

Item 1.      Business.......................................................   3
Item 1A.     Risk Factors...................................................   4
Item 1B.     Unresolved Staff Comments......................................  10
Item 2.      Properties.....................................................  10
Item 3.      Legal Proceedings..............................................  10
Item 4.      Submission of Matters to a Vote of Shareholders................  11


                                     PART II

Item 5.      Market for the Registrant's Common Equity
             and Related Shareholder Matters................................  11
Item 6.      Selected Financial Data........................................  11
Item 7.      Management's Discussion and Analysis
             of Financial Condition and Results of Operations...............  12
Item 7A.     Quantitative and Qualitative Disclosure About Market Risk......  16
Item 8.      Financial Statements and Supplementary Data....................  17
Item 9.      Changes in and Disagreements with Accountants
             on Accounting and Financial Disclosure.........................  32
Item 9A.     Controls and Procedures........................................  32


                                    PART III

Item 10.     Directors and Executive Officers of the Registrant.............  32
Item 11.     Executive Compensation.........................................  34
Item 12.     Security Ownership of Certain Beneficial Owners and Management.  35
Item 13.     Certain Relationships and Related Transactions.................  35
Item 14.     Principal Accountant Fees and Services.........................  35


                                     PART IV

Item 15.     Exhibits and Financial Statement Schedules.....................  36
             Signatures.....................................................  37
             Exhibit Index..................................................  38

<PAGE>


                                     PART I

Item 1. Business
        --------
Berthel Growth & Income Trust I (the Trust), a Delaware business trust that has
elected to be treated as a business development company under the Investment
Company Act of 1940, was organized on February 10, 1995. The Trust's
Registration Statement was declared effective June 21, 1995, at which time the
Trust began offering Shares of Beneficial Interest (shares). The underwriting
period was completed on June 21, 1997, with a total of $10,541,000 raised. The
Trust's principal office is located at 701 Tama Street, Marion, Iowa 52302. The
Trust is a closed-end management investment company intended as a long-term
investment and not as a trading vehicle.

On May 4, 1998, Berthel SBIC, LLC (SBIC), a wholly owned subsidiary of the Trust
within the meaning of Section 2(a)(43) of the Investment Company Act of 1940,
received a license to operate as a Small Business Investment Company from the
Small Business Administration (SBA). The SBIC was formed in 1997. The Trust
initially funded the SBIC with a capital contribution of $5,000,000, the minimum
amount eligible to be contributed in order to receive leverage under the SBA
Small Business Investment Company program. During 2001, the Trust contributed an
additional $700,000 in capital to the SBIC. The Trust Advisor and Independent
Trustees (Trustees) also serve as the Independent Managers of the SBIC. As used
hereinafter, with respect to investment activities, the term "Trust" includes
investment activities of the SBIC.

Berthel Fisher & Company Planning, Inc. (Trust Advisor) is a corporation
organized under the laws of the State of Iowa on March 20, 1989. The Trust
Advisor is a registered investment advisor organized as a wholly owned
subsidiary of Berthel Fisher & Company (Berthel Fisher). Berthel Fisher, a
financial services holding company, was formed in 1985 as an Iowa corporation to
hold the stock of Berthel Fisher & Company Financial Services, Inc. (Financial
Services), a broker-dealer registered with the National Association of
Securities Dealers, Inc. Financial Services was the dealer-manager for the
Trust's offering of its shares.

The Trust will terminate upon the liquidation of all of its investments, but no
later than June 21, 2007. However, the Independent Trustees have the right to
extend the term of the Trust for up to two (2) additional one-year periods if
they determine that such extensions are in the best interest of the Trust and in
the best interest of the shareholders, after which the Trust will liquidate any
remaining investments as soon as practicable but in any event within three
years. It is management's intention to extend the Trust for two years and has
applied for an extension of the loan through September of 2009 which is subject
to approval by the SBA.

During the years ended December 31, 2006 and 2005, the Trust continues to have a
deficiency in net assets, as well as net investment losses during the years
ended December 31, 2006, 2005, and 2004. In addition, the SBIC is in violation
of the maximum capital impairment percentage permitted by the SBA. On August 22,
2002, the SBA notified the SBIC that all debentures, accrued interest and fees
were immediately due and payable. The SBIC was transferred into the Liquidation
Office of the SBA effective August 22, 2002. On September 1, 2003, management
signed a loan agreement with the SBA for $8,100,000 (after paying $1,400,000 on
the $9,500,000 debentures) with a term of 48 months at an interest rate of
7.49%. The loan is secured by substantially all assets of the SBIC. The loan
agreement contains various covenants including establishment of a reserve
account in the amount of $250,000 with excess cash paid to the SBA, limits on
the amounts of expenses, other than interest expense, that can be incurred and
paid. The loan agreement also contains various events of default, including a
decrease in the aggregate value of the SBIC's assets of 10% or greater.

                                       3

<PAGE>


As of December 31, 2006, total assets and liabilities of the Trust are
$5,926,267 and $11,138,244, respectively. These factors raise substantial doubt
about the ability of the Trust to continue as a going concern. No assurance can
be given that the Trust will have sufficient cash flow to repay the debt or that
the Trust will be financially viable.

The investment objective of the Trust is to provide capital appreciation
potential and current income by investing primarily in subordinated debt,
preferred stock and related equity securities issued by small and medium sized
companies that the Trust Advisor believes offer the opportunity for growth or
appreciation of equity value while being able, if required to do so, to service
current yield bearing securities. The Trust, through its Trust Advisor, directs
its investment efforts to small and medium sized companies which, in the view of
the Trust Advisor, provides opportunities for significant capital appreciation
and prudent diversification of risk. The Trust seeks investments in a variety of
companies and industries. The securities of portfolio companies purchased by the
Trust typically will be rated below investment grade, and more frequently, not
rated at all. The securities of portfolio companies will often have significant
speculative characteristics.

Item 1A. Risk Factors
         ------------
AN INVESTMENT IN THE TRUST INVOLVES A NUMBER OF SIGNIFICANT RISKS AND WILL BE
AFFECTED BY OTHER IMPORTANT FACTORS RELATING TO INVESTMENTS IN TRUSTS GENERALLY,
AND RELATING TO THE STRUCTURE AND INVESTMENT OBJECTIVES OF THE TRUST IN
PARTICULAR. AS A RESULT OF THESE RISKS AND FACTORS, THERE IS NO ASSURANCE THAT
THE TRUST WILL BE ABLE TO CARRY OUT ITS INVESTMENT PROGRAM SUCCESSFULLY.

GOING CONCERN CONSIDERATIONS
During the years ended December 31, 2006 and 2005, the Trust continues to have a
deficiency in net assets, as well as net investment losses during the years
ended December 31, 2006, 2005, and 2004. In addition, the SBIC is in violation
of the maximum capital impairment percentage permitted by the SBA. On August 22,
2002, the SBA notified the SBIC that all debentures, accrued interest and fees
were immediately due and payable. The SBIC was transferred into the Liquidation
Office of the SBA effective August 22, 2002. On September 1, 2003, management
signed a loan agreement with the SBA for $8,100,000 (after paying $1,400,000 on
the $9,500,000 debentures) with a term of 48 months at an interest rate of
7.49%. The loan is secured by substantially all assets of the SBIC. The loan
agreement contains various covenants including establishment of a reserve
account in the amount of $250,000 with excess cash paid to the SBA, limits on
the amounts of expenses, other than interest expense, that can be incurred and
paid. The loan agreement also contains various events of default, including a
decrease in the aggregate value of the SBIC's assets of 10% or greater.

As of December 31, 2006, total assets and liabilities of the Trust are
$5,926,267 and $11,138,244, respectively. These factors raise substantial doubt
about the ability of the Trust to continue as a going concern. No assurance can
be given that the Trust will have sufficient cash flow to repay the debt or that
the Trust will be financially viable.

                                       4

<PAGE>


GENERAL NATURE OF INVESTMENTS
While investments in highly leveraged companies offer the opportunity for
current income and capital appreciation, such investments involve a high degree
of business and financial risk and can result in loss of all invested principal.
Furthermore, Portfolio Companies may be created for the purpose of undertaking
specific transactions and may have no operating histories. The Trust Advisor
anticipates that most of the Portfolio Companies will be highly leveraged as a
result of (i) the Trust's investment, and (ii) debt instruments issued to other
securities holders of such Portfolio Companies. If a Portfolio Company cannot
generate adequate cash flow to meet debt service, all or part of the principal
of such company's debt may not be repaid and, in such event, the value of the
Trust's subordinated debt or equity participation could be reduced or
eliminated.

In addition, high leverage and other general business risks (such as labor
problems, casualty losses, increases in operating expenses, disputes with
suppliers or customers and other problems that require additional company
resources) may have a magnified effect on Portfolio Companies. The effects of a
deterioration of the general economy may have a more pronounced effect on the
profitability of such highly leveraged companies as well. In addition, such
companies may be less diversified than other companies and, therefore, are more
negatively impacted by business cycles.

The interest rate that the Trust charges on debt investments will be subject to
the usury laws of the states in which it conducts its business. Such laws may
limit the amount of interest that the Trust may legally charge. Whether an
equity participation is or is not considered interest may not be clearly
established in some states. There can be no assurance that some of the equity
received by the Trust will not be valued in a way that causes the Trust to
exceed a state's usury limitations, subjecting the Trust to severe penalties,
including loss of interest, treble damages and forfeiture of principal.

Enhanced Yield Investments consist of Mezzanine Investments and Other
Investments. Mezzanine Investments are investments that are designed to yield a
projected return over the life of the investment that is higher than secured
debt financing, but lower than equity financing. Mezzanine Investments represent
a layer of corporate financing between equity and senior debt. Senior debt is
debt typically provided by financial institutions on a secured basis. Other
Investments include all securities invested in by the Trust that are not
Mezzanine Investments, including High Yield Debt Investments (commonly referred
to as "junk bonds"), Venture Investments, Bridge Investments and Publicly Traded
Securities. Enhanced Yield Investments may include investments in financially
troubled companies, including companies undergoing workouts or whose outstanding
debts have been restructured. The sensitivity of such companies to general
economic conditions, such as recessions or changes in interest or inflation
rates, fluctuations in local or general business conditions, increases in
operating expenses, work stoppages or other labor disputes or disputes with
suppliers or customers, will be heightened due to such financial troubles.

Furthermore, since the Trust generally will invest in less than investment grade
or in unrated securities, the financial risks associated with its investments
will be very high. The Trust's investments generally will be made in unrated
securities purchased in private placements.

EFFECT OF INTEREST RATE SENSITIVITY ON SENIOR DEBT
Fluctuations in interest rates may have an adverse impact on the Trust
indirectly through the effect of interest rate fluctuations on Portfolio
Companies. Many of the Trust's investments will be Enhanced Yield Investments
consisting primarily of subordinated debt and equity securities issued by

                                       5

<PAGE>


Portfolio Companies that have also issued senior debt. The payment of any
amounts due on the Trust's investment will, therefore, generally be subject to
the payments due, if any, on debt senior to the Trust's investment. Furthermore,
since senior debt typically bears interest at a floating rate, while other debt
typically does not, increased interest rates may shift more of a company's
available funds to the senior lenders. If a Portfolio Company cannot generate
sufficient cash flow to meet such increased interest payments the shift of funds
to senior lenders could decrease or eliminate the amount realized on the Trust's
investment.

ILLIQUIDITY OF THE INVESTMENTS
Most of the investments of the Corporation consist of securities acquired
directly from their issuers in private transactions. They are usually subject to
restrictions on resale and are generally illiquid. Usually there is no
established trading market for such securities into which they could be sold. In
addition, most of the securities are not eligible for sale to the public without
registration under the Securities Act of 1933, as amended, which would involve
delay and expense. Restricted securities generally sell at a price lower than
similar securities that are not subject to restrictions on sale.

LIQUIDATION OF INVESTMENTS
The Trust will terminate upon the liquidation of all of its investments, but no
later than June 21, 2007. However, the Independent Trustees have the right to
extend the term of the Trust for up to two (2) additional one-year periods if
they determine that such extensions are in the best interest of the Trust and in
the best interest of the shareholders, after which the Trust will liquidate any
remaining investments as soon as practicable but in any event within three
years. It is management's intention to extend the Trust for two years and has
applied for an extension of the loan through September of 2009 which is subject
to approval by the SBA. If the Trust's debt investments do not mature prior to
the end of the Trust's term, or if the Trust is not otherwise able to liquidate
such investments in the normal course of business prior to the expiration of its
term, the Trust could incur substantial capital losses resulting from the
liquidation of debt securities prior to their maturity if interest rates at the
time of liquidation are higher than the interest rates earned by such debt
securities. The Trust Advisor will seek to negotiate maturities of investments
within the stated term of the Trust. If the Trust is unable to sell or liquidate
its equity interests or other securities before the end of the Trust's term and
the Trust is forced to liquidate in a short period of time, there will be a
substantial discount taken in order to sell the security.

FOLLOW-ON INVESTMENTS
Following its initial investment, the Trust may make additional debt and equity
investments in Portfolio Companies ("Follow-On Investments") to increase its
investment in a Portfolio Company, to convert convertible securities that were
acquired in the original financing, to exercise warrants and options, to
preserve the Trust's proportionate ownership when a subsequent financing is
pursued or made or to protect the Trust's initial investment when a Portfolio
Company's performance does not meet expectations. The Trust will have the
discretion to make any Follow-On Investments as it determines, subject to the
availability of capital. The failure to make such Follow-On Investments may, in
certain circumstances, jeopardize the continued viability of a Portfolio Company
and the Trust's initial investment. The necessity of making Follow-On
Investments and the level of the minimum number of Shares that may be sold may
limit the number of companies in which the Trust has the ability to invest.
There can be no assurance that the Trust will have sufficient funds to make
necessary Follow-On Investments or that, following a Follow-On Investment, the
Trust will not lose the entire amount of its initial and Follow-On Investment.
In deciding whether to make a Follow-On Investment, the Trust Advisor will
exercise its business judgment and apply similar criteria as it does with
initial investments.

                                       6

<PAGE>


DISTRIBUTIONS TO INVESTORS
The Trust intends to make quarterly distributions of all cash revenues to the
extent it has cash available for such distributions. These distributions must be
approved by a majority of the Trustees and made within sixty days of the end of
each quarter. No distributions have been made to investors since 1999.
Distributions from the SBIC to the Trust are restricted under SBA regulations.
Under SBA regulations, the SBIC subsidiary is not able to distribute income to
the parent unless it has "earnings available for distribution" as defined by the
SBA. Accordingly, the SBIC had no distributable cash. No assurance can be
provided that any distributions will be made in the future.

LEVERAGE
The SBIC issued debentures payable to the SBA totalling $9,500,000 since
inception. The original debenture terms required semiannual payments of interest
at annual interest rates ranging from 6.353% to 7.64%. In addition to interest
payments, the SBIC was required to pay an annual 1% SBA loan fee on the
outstanding debentures balance.

On August 22, 2002, the SBA notified the SBIC that all debentures, accrued
interest and fees were immediately due and payable. The SBIC submitted a plan of
debt and interest repayment to the SBA on January 31, 2003 and received a
response dated February 21, 2003. On September 1, 2003, management signed a loan
agreement ("Agreement") with the SBA for $8,100,000 (after paying $1,400,000 on
the $9,500,000 debentures) with a term of 48 months at an interest rate of
7.49%. The Agreement requires principal payments on the debt to the extent the
SBIC receives cash proceeds exceeding $250,000 for the sale or liquidation of
investments. As of December 31, 2006, $2,788,590 is outstanding under the loan
agreement. The note payable is secured by substantially all assets of the SBIC.
The loan agreement contains various covenants, including limits on the amounts
of expenses, other than interest expense, that can be incurred and paid. The
loan agreement also contains various events of default, including a decrease in
the aggregate value of the SBIC's assets of 10% or greater.

COMPETITION FOR INVESTMENTS
A large number of entities and individuals compete for the kinds of investments
made by the Trust. Many of these entities and individuals have greater financial
resources than the Trust. As a result of this competition, the Trust may be
precluded from entering into attractive transactions on terms considered by the
Trust Adviser to be prudent in light of the risks to be assumed.

INTEREST RATE AND STOCK MARKET FLUCTUATIONS
The Trust anticipates that Enhanced Yield Investments generally will pay
interest at fixed rates. Therefore, if interest rates generally rise while such
investments are outstanding, Investors in the Trust may receive interest income
at lower rates than are then prevailing in the market place.

General fluctuations in the prices of securities on the stock markets may affect
the value of the investments held by the Trust. Moreover, the business plans of
certain Portfolio Companies may include the sale of segments of their business.
Stock market fluctuations may affect the amount Portfolio Companies can receive
from the sale of certain segments of their businesses, which will affect the
value of the Trust's investment in those Portfolio Companies.

                                       7

<PAGE>


LIMITED NUMBER OF INVESTMENTS AND INDUSTRY CONCENTRATION
While the Trust Advisor intends to limit the exposure of the Trust's capital in
any single investment, the Trust's capital will be invested in a limited number
of Portfolio Companies, and financial difficulty on the part of any single
Portfolio Company will expose it to a greater risk of loss than would be the
case if it were a "diversified" company holding numerous investments.

The Trust intends to spread its investments among several industries. If the
most attractive Enhanced Yield Investments available to the Trust Advisor and
the Trust are concentrated in a small number of industries, the Trust's
portfolio may become concentrated in those industries. As such, the Trust may be
exposed to the risk of adverse developments in or affecting any industry to a
greater extent than if its investments were dispersed over a greater variety of
industries.

TAXATION OF THE TRUST AS A CORPORATION
The anticipated tax consequences to Shareholders of an investment in the Trust,
such as the pass-through of income, gain, losses and other deductions, depends
upon the classification of the Trust as a partnership, rather than an
association taxable as a corporation, for federal income tax purposes. The Trust
has not requested an advance ruling from the Internal Revenue Service (the
"IRS") that it be treated as a partnership for federal income tax purposes. The
IRS would likely deny any such request since the Trust will not satisfy all of
the requirements contained in published IRS Procedures for obtaining such an
advance ruling. Instead, Bradley & Riley, P.C., counsel to the Trust, has
delivered its opinion that, provided the Trust is not a publicly traded Trust,
the Trust will be classified is a partnership for federal income tax purposes.
Unlike a tax ruling, an opinion of counsel has no binding effect on the IRS and
there can be no assurance that the IRS will not challenge the classification of
the Trust as a partnership for federal income tax purposes. Moreover, continued
eligibility of the Trust for classification as a partnership will depend on no
adverse changes of law and the Trust's not becoming a publicly traded
partnership as described below. Since the Trust will not be eligible for the tax
treatment available to investment companies registered as such under the
Investment Company Act, the Trust would be required to pay income tax at
corporate tax rates on its net income if it were classified as an association
taxable as a corporation.

In recent years, the Treasury Department and members of Congress have on
multiple occasions proposed to classify trusts and limited partnerships with
interests which are widely held, such as the Trust, as corporations rather than
partnerships for federal income tax purposes. The Internal Revenue Code of 1986
was amended to provide that certain "publicly traded partnerships" will be
classified as corporations for federal income tax purposes. The Declaration of
Trust provides for the Trust to satisfy one of certain safe harbors for avoiding
classification as a publicly traded partnership contained in an IRS Advance
Notice and proposed Regulations recently issued by the IRS. Accordingly, it is
not anticipated that the Trust will be a publicly traded partnership. However,
there is no assurance that regulations will not be promulgated or legislation
will not be passed that would cause the Trust to be classified as a corporation
or publicly traded partnership. The Declaration of Trust provides that if it
appears likely that the Trust will be classified as a corporation or a publicly
traded partnership for federal income tax purposes, the Trust Advisor may take
such steps as it deems necessary to minimize the adverse tax consequences of
such classification. Such steps could include the amendment of the Declaration
of Trust, reorganization of the Trust as a regulated investment company pursuant
to section 851 of the Code, liquidation of the Trust or such other steps as may
be deemed appropriate to the Trust Advisor and the Independent Trustees at such
time.

                                       8

<PAGE>


TAX CONSIDERATIONS FOR FOREIGN INVESTORS
The tax treatment applicable to a foreign Investor who invests in the Trust is
complex and subject to uncertainty and will vary depending upon the particular
circumstances of a particular Investor. Foreign Investors should consult their
tax advisers with respect to the possible federal, state, local and foreign tax
consequences of an investment in the Trust.

RELIANCE ON THE TRUST ADVISOR
Pursuant to the Management Agreement between the Trust and the Trust Advisor,
the Trust will only make Enhanced Yield Investments recommended by the Trust
Advisor. Accordingly, an Investor in the Shares must rely upon the ability of
the Trust Advisor in identifying, structuring and making Enhanced Yield
Investments consistent with the Trust's investment objectives and Policies.
There are no employment agreements between the Trust Advisor and its key
management personnel. No assurances can be given as to the continuing
availability of such management services during the life of the Trust. Such
management services could cease to be available to the Trust under various
circumstances, including a change in the control of the Trust Advisor.
Furthermore, management will not be evaluated by the Shareholders.

TRUST ADVISOR'S BROAD DISCRETION OVER THE USE OF PROCEEDS
All decisions with respect to the management of the Trust will be made
exclusively by the Independent Trustees and the Trust Advisor. Shareholders have
no right or power to take part in the management of the Trust. Accordingly, no
person should purchase Shares unless such person is willing to entrust the
management of the Trust to the Trust Advisor, subject to overall supervision of
the Independent Trustees.

An Investor will not have the opportunity to evaluate personally the relevant
economic, financial and other information that will be utilized by the Trust
Advisor in its selection, structuring, monitoring and disposition of investments
and will not receive the detailed financial information prepared by Portfolio
Companies that is available to the Trust Advisor.

NO MARKET FOR SHARES; SHARES ARE ILLIQUID SECURITIES
The Shares will only be transferable in accordance with certain restrictions in
the Declaration of Trust and may be affected by restrictions on resales imposed
by the laws of some states. A Shareholder may not transfer a Share unless the
Shareholder represents and provides documentation satisfactory in form and
substance to the Trust Advisor that such transfer was not effected through a
broker dealer or matching agent that makes a market in Shares or that provides a
readily available, regular and ongoing opportunity to Shareholders to sell or
exchange their Shares through a public means of obtaining or providing
information of offers to buy, sell or exchange Shares. In the case of the sale
of a Share, the Trust Advisor must determine that such sale, assignment or
transfer would not, by itself or together with any other sales, transfers or
assignments, likely result in the Trust's being classified as a publicly traded
partnership. A transferor will not be required to make the representations
described above if he represents that the transfer is affected through an agent
whose procedures have been approved by the Trust Advisor as consistent with the
requirements for avoiding classification as a publicly traded partnership. The
Declaration of Trust also prohibits the transfer of Shares to certain
transferees. There is presently no public market for the Shares, and there are
restrictions contained in the Declaration of Trust that are intended to prevent
the development of a public market. Consequently, Shareholders may not be able
to liquidate their investment in the event of emergency or for any other reason.
Such factors may also affect the price which a Shareholder would be able to
obtain for Shares.

                                       9

<PAGE>


REGULATION
The Trust has elected to be treated as a business development company under the
Investment Company Act. Such Act imposes restrictions on the activities of the
Trust, including restrictions on the nature of its investments, the use of
borrowed funds for Trust purposes and its issuance of securities, options,
warrants or other rights, and requires that a majority of the Trustees of the
Trust be individuals who are not "interested persons" of the Trust as defined in
the Investment Company Act. Such restrictions may prohibit the purchase of
certain Enhanced Yield Investments that would otherwise be suitable for
investment by the Trust or render such purchases inadvisable.

Because there are no judicial and few administrative interpretations of portions
of the legislation applicable to the Trust, there is no assurance that the
legislation will be interpreted or administratively implemented in a manner
consistent with the Trust's objectives and intended manner of operation. If the
Trust Advisor, with the approval of the Trustees of the Trust, determines that
the Trust cannot operate effectively under the Investment Company Act, the Trust
Advisor, with the approval of the Trustees, may at some future date decide to
withdraw the Trust's election as a business development company and transform it
into an operating company not subject to regulation under the Investment Company
Act or cause it to liquidate. Such changes may not be effected without the
approval of the Shareholders holding a majority of the outstanding Shares of the
Trust.

The Trust is regulated by the SEC and its subsidiary, Berthel SBIC, is regulated
by the SBA. In addition, changes in the laws or regulations that govern the
Trust and SBIC may significantly affect our business. Any change in the law or
regulations that govern our business could have a material impact on us or our
operations. Laws and regulations may be changed from time to time, and the
interpretations of the relevant laws and regulations also are subject to change,
which may have a material effect on our operations.

CONFLICTS OF INTEREST
The Trust Advisor, the Corporate Trustee and their Affiliates, including the
Dealer Manager and its parent, Berthel Fisher & Company, may be subject to
various conflicts of interest in connection with their relationships and
transactions with the Trust. The contractual and other arrangements between the
Trust and the Trust Advisor, the Corporate Trustee and their Affiliates,
including the Dealer Manager, have not been established by arm's length
negotiations. Such conflicts of interest may include the following: transactions
with the Trust and Portfolio Companies; conflicts as to investment
opportunities; timing of disposition of trust investments; allocation of the
Trust Advisor's time and services; other relationships with Portfolio Companies;
participation by an Affiliate as Dealer Manager; and lack of separate
representation.

Item 1B. Unresolved Staff Comments
         -------------------------
None.

Item 2. Properties
        ----------
The Trust does not own or lease any real estate.

Item 3. Legal Proceedings
        -----------------
None

                                       10

<PAGE>
<TABLE>
<CAPTION>


Item 4.  Submission of Matters to a Vote of Shareholders
         -----------------------------------------------
No matters were submitted to a vote of shareholders, through the solicitation of
proxies or otherwise during the period covered by this report.


                                     PART II

Item 5.   Market for the Registrant's Common Equity and Related Shareholder Matters
The Registrant's shares are not publicly traded. There is no established public
trading market for the shares of the Trust and it is unlikely that any will
develop. The Trust Advisor will resist the development of a public market for
the shares.

                                                       Number of Shareholders              Number of Shares
         Title of Class                                  at February 1, 2007             at February 1, 2007
         ---------------------------------------------------------------------------------------------------
         <S>                                                    <C>                            <C>
         Shares of Beneficial Interest                           882                            10,541

The Trust accrued an underwriting return based on 10% simple annual interest
computed on a daily basis from the initial closing (August 30, 1995) until June
21, 1997, the final closing. Shareholders were paid $250,000 in July 1996 and
$493,897 in July 1997, leaving $522,791 of the underwriting return remaining to
be paid. There remains to be paid $3,610, which represents interest earned by
the Trust on the investor's funds held in escrow through the initial closing.
Since the final closing, a priority return at 8% simple interest has been
accrued. The earned priority return amounted to $843,280, $843,280, $845,590,
$843,199, and $843,251 in 2002, 2003, 2004, 2005, and 2006, respectively. No
priority return distributions have been paid since 1999. Priority return
distributions payable at December 31 of each year were $3,455,418, $4,298,698,
$5,144,288, $5,987,487, and $6,830,738 for 2002, 2003, 2004, 2005, and 2006,
respectively.

The Trust intends to make quarterly distributions of all cash revenues to the
extent it has cash available for such distributions. These distributions must be
approved by a majority of the Trustees and made within sixty days of the end of
each quarter. The Trustees declared no distributions during 2006. Distributions
from the SBIC to the Trust are restricted under SBA regulations. Under SBA
regulations, the SBIC subsidiary is not able to distribute income to the parent
unless it has "earnings available for distribution" as defined by the SBA.
Accordingly, the SBIC had no distributable cash.


Item 6.  Selected Financial Data
         -----------------------

                                                                Year Ended December 31
                                -----------------------------------------------------------------------------------
                                     2006            2005               2004            2003                2002
-------------------------------------------------------------------------------------------------------------------
Total assets                   $   5,926,267     $   7,954,366    $    8,449,498    $   8,968,700    $    9,558,093
Debentures payable                 2,788,590         6,075,209         7,426,919        7,709,172         9,500,000
Net increase (decrease) in
 net assets                        1,056,490           670,365          (611,176)       1,302,461        (1,907,247)
Unrealized gain (loss)
 on investments                        6,089           944,615             3,773        1,916,997         1,682,463
Realized gain (loss)
 on investments                    1,510,035           461,534               -0-          173,355        (2,978,023)
Net increase (decrease) in
 net assets per beneficial share      100.23             63.60            (57.98)          123.56
(180.94)
Distributions per beneficial share       -0-               -0-               -0-              -0-               -0-

The above selected data should be read in conjunction with the consolidated
financial statements and related notes appearing elsewhere in this report.

                                       11
</TABLE>
<PAGE>



Item 7. Management's Discussion and Analysis of Financial Condition and Results
        -----------------------------------------------------------------------
        of Operations
        -------------

Critical Accounting Policy
The Trust's consolidated financial statements are prepared in accordance with
accounting principles generally accepted in the United States of America. The
financial information contained within these statements is, to a significant
extent, financial information that is based on approximate measures of the
financial effects of transactions and events that have already occurred. Based
on its consideration of accounting policies that involve the most complex and
subjective decisions and assessments, management has identified it most critical
accounting policy to be that related to the valuation of loans and investments.
The Trust's valuation of loans and investments incorporates a variety of risk
considerations, both quantitative and qualitative in establishing a valuation of
loans and investments that management believes is appropriate at each reporting
date. Quantitative factors for the valuation of loans and investments include
the Trust's cost of the investment, terms and liquidity of the warrants,
developments since the acquisition of the investment, the sales price of
recently issued securities, the financial condition and operating results of the
issuer, earnings trends and consistency of operating cash flows, the long-term
business potential of the issuer, the quoted market prices of securities with
similar quality and yield that are publicly traded and other factors generally
pertinent to the valuation of the investments. Quantitative factors also
incorporate known information about individual loans and investments.
Qualitative factors include the general economic environment in the
Partnership's markets, including economic conditions throughout the Midwest and
in particular the state of certain industries. Management may report a
materially different amount for the provision for loan and lease losses in the
statement of operations to change the valuation of loans and investments if its
assessment of the above factors were different. Although management believes the
valuation of loans and investments as of both December 31, 2006 and 2005 were
adequate, a decline in local economic conditions, or other factors, could result
in increasing losses that cannot be reasonably predicted at this time.

Results of Operations
Net investment income (loss) reflects revenues and expenses excluding realized
and unrealized gains and losses on investments. Interest income for the past
three years is summarized as follows:

                                      2006           2005          2004
     Portfolio investments         $  105,977     $  103,357    $  254,567
     Money market                       6,662          3,303         2,901
     Interest income               $  112,639     $  106,660    $  257,468

Changes in interest earned on portfolio investments reflect the level of
investment in interest earning debt securities and loans. Money market interest
reflects cash resources that are invested in highly liquid money market savings
funds. Dividend income was $16,667 in 2006, $74,643 in 2005, and $93,434 in
2004, reflecting dividends earned on preferred stock investments.

Management fees, calculated as 2.5% of the combined temporary investment in
money market securities and loans and investments balances, were $174,979 in
2006, $211,257 in 2005, and $227,834 in 2004. The decrease is a result of the
lower investment base. Management fees are accrued and payable to the Trust
Advisor, in accordance with the management agreement.

On February 7, 2007, management of the Trust Advisor decided to waive the
management fees for 2006. The Trust accrued management fees payable to the Trust
Advisor for 2006 totaling $174,979 and this forgiveness of debt will be
reflected in the financial statements during the first quarter of 2007. At this

                                       12

<PAGE>


time, the Trust Advisor has not waived management fees relating to 2007 or to
years prior to 2006. The management fees relating to 2005 and prior total
$515,731.

Trustee fees represent compensation for services rendered to the Trust. Each
Independent Trustee is paid $1,000 per month for these services.

Professional fees were $25,549, $69,360, and $95,571 in 2006, 2005, and 2004,
respectively, and include legal, accounting, and other expenses. The other
expenses is the accrual of fees, which have been paid by the Trust Advisor, for
an investment banking firm to assist in the process of liquidating the SBIC's
portfolio, with the goal of maximizing values through mergers, sales, etc. of
the portfolio companies. Other general and administrative expenses were $47,527
in 2006, $53,035 in 2005, and $46,795 in 2004.

In accordance with the SBA loan agreement, discussed in more detail below, the
Trust continues to accrue the management fees, but is not paying them.
Management fees payable to the Trust Advisor are $690,710 as of December 31,
2006. The Trust does not have sufficient cash available to pay the trustee fees.
Fees payable to the trustees were $90,000 as of December 31, 2006.

Interest expense is on the note payable to the SBA and was $314,381 in 2006,
$556,276 in 2005, and $572,585 in 2004. The Trust issued debentures totalling
$9,500,000 for which the SBA has demanded repayment; this debt was refinanced
during 2003, as described in the following paragraph.

During the years ended December 31, 2006 and 2005, the Trust continues to have a
deficiency in net assets, as well as net investment losses during the years
ended December 31, 2006, 2005, and 2004. In addition, the SBIC is in violation
of the maximum capital impairment percentage permitted by the SBA. On August 22,
2002, the SBA notified the SBIC that all debentures, accrued interest and fees
were immediately due and payable. The SBIC was transferred into the Liquidation
Office of the SBA effective August 22, 2002. On September 1, 2003, management
signed a loan agreement with the SBA for $8,100,000 (after paying $1,400,000 on
the $9,500,000 debentures) with a term of 48 months at an interest rate of
7.49%. The loan is secured by substantially all assets of the SBIC. The loan
agreement contains various covenants including establishment of a reserve
account in the amount of $250,000 with excess cash paid to the SBA, limits on
the amounts of expenses, other than interest expense, that can be incurred and
paid. The loan agreement also contains various events of default, including a
decrease in the aggregate value of the SBIC's assets of 10% or greater.

As of December 31, 2006, total assets and liabilities of the Trust are
$5,926,267 and $11,138,244, respectively. These factors raise substantial doubt
about the ability of the Trust to continue as a going concern. No assurance can
be given that the Trust will have sufficient cash flow to repay the debt or that
the Trust will be financially viable.

                                       13

<PAGE>


The changes in unrealized gains and losses and the realized gains and losses on
investments recognized during the previous three years are summarized below:

Unrealized gains (losses):             2006            2005           2004
--------------------------             ----            ----           ----

Childs & Albert, Inc.               $   472,065    $  (472,065)   $       -0-
Physicians Total Care, Inc.             100,000      1,100,000            -0-
EDmin.com                                   -0-            -0-       (631,264)
Media Sciences International           (565,976)       (50,382)       635,037
Pickerman's Development Company             -0-        633,032            -0-
IMED Devices, Inc.                          -0-       (265,970)           -0-
                                    -----------    -----------    -----------
Total unrealized gain               $     6,089    $   944,615    $     3,773
                                    ===========    ===========    ===========


Realized gains (losses):               2006            2005           2004
------------------------               ----            ----           ----
FutureMatrix Interventional, Inc.   $   500,000    $       -0-    $       -0-
Childs & Albert, Inc.                  (172,065)           -0-            -0-
International Pacific Seafoods              -0-        100,000            -0-
Media Sciences International          1,182,100        994,566            -0-
Pickerman's Development Company             -0-       (633,032)           -0-
                                    -----------    -----------    -----------
Total realized gain                 $ 1,510,035    $   461,534    $       -0-
                                    ===========    ===========    ===========

The change in the unrealized gains and losses and the realized gains and losses
are the result of carrying the Trust's portfolio of loans and investments at
fair value. The fair value of the loans and investments are approved by the
Independent Trustees, and in the case of the SBIC, are in accordance with SBA
regulations. The realized gains and losses reflect investments that have either
been sold or written off as deemed to be worthless. Securities that are traded
publicly are valued at the market price less any appropriate discount for
reasons of liquidity or restrictions.

The investment objective of the Trust is to provide capital appreciation
potential and current income by investing primarily in subordinated debt,
preferred stock and related equity securities issued by small and medium sized
companies that the Trust Advisor believes offer the opportunity for growth or
appreciation of equity value while being able, if required to do so, to service
current yield bearing securities. The Trust seeks investments in a variety of
companies and industries. The securities of portfolio companies purchased by the
Trust typically will be rated below investment grade, and more frequently, not
rated at all. The securities of such portfolio companies will often have
significant speculative characteristics. The Trust's investments at December 31,
2006, 2005, and 2004 are summarized by type of investment in the table below.

                                                    December 31, 2006
                                                    -----------------
                                               Cost                 Fair Value
                                            -----------            -----------
Debt securities and loans                   $   516,769            $   908,974
Preferred stocks                              1,139,479              1,139,479
Warrants to purchase common stock                11,504                 11,504
Common stocks                                 2,023,008              3,603,859
                                            -----------            -----------
                                            $ 3,690,760            $ 5,663,816
                                            ===========            ===========

                                                    December 31, 2005
                                                    -----------------
                                               Cost                 Fair Value
                                            -----------            -----------
Debt securities and loans                   $ 2,024,420            $ 1,916,625
Preferred stocks                              1,139,479              1,139,479
Warrants to purchase common stock               186,209              2,471,504
Common stocks                                 2,293,506              2,082,973
                                            -----------            -----------
                                            $ 5,643,614            $ 7,610,581
                                            ===========            ===========

                                       14

<PAGE>


                                                    December 31, 2004
                                                    -----------------
                                               Cost                  Fair Value
                                            -----------             -----------
Debt securities and loans                   $ 2,770,079             $ 1,402,101
Preferred stocks                              1,094,007               1,094,007
Warrants to purchase common stock               259,058               2,543,569
Common stocks                                 2,934,286               3,040,105
                                            -----------             -----------
                                            $ 7,057,430             $ 8,079,782
                                            ===========             ===========


Whenever possible, the Trust will negotiate enhancements to the securities
purchased in the form of warrants to purchase shares of common stock in
portfolio companies, options to force redemption of securities by portfolio
companies ("Put Options"), and registration rights should a portfolio company
begin to offer its shares in the public market. Agreements with portfolio
companies may also include restrictive covenants that contribute to sound
management practices at portfolio companies. Regardless of terms that the Trust
is able to achieve with any portfolio company, there is no assurance that any
investment made by the Trust will be repaid or redeemed at a profit; and there
is risk of total loss of any investment made by the Trust.

The difference between cost and fair value of the investments represents
accumulated unrealized gains and losses. Accumulated unrealized gains and losses
are reflected in the statements of assets and liabilities. Changes in
accumulated unrealized gains and losses are reflected in the statements of
operations.

Liquidity and Capital Resources
Net cash from operating activities was a net source of cash of $3,207,207 in
2006 compared to a net source of cash of $1,428,624 in 2005. This increase in
cash flow is primarily due to the net changes in loans and investments. The
Trust had a net use of cash for financing activities of $3,286,619 and
$1,351,710 in 2006 and 2005, respectively, relating to the payment of debt to
the SBA.

During the years ended December 31, 2006 and 2005, the Trust continues to have a
deficiency in net assets, as well as net investment losses during the years
ended December 31, 2006, 2005, and 2004. In addition, the SBIC is in violation
of the maximum capital impairment percentage permitted by the SBA. On August 22,
2002, the SBA notified the SBIC that all debentures, accrued interest and fees
were immediately due and payable. The SBIC was transferred into the Liquidation
Office of the SBA effective August 22, 2002. On September 1, 2003, management
signed a loan agreement with the SBA for $8,100,000 (after paying $1,400,000 on
the $9,500,000 debentures) with a term of 48 months at an interest rate of
7.49%. The loan is secured by substantially all assets of the SBIC. The loan
agreement contains various covenants including establishment of a reserve
account in the amount of $250,000 with excess cash paid to the SBA, limits on
the amounts of expenses, other than interest expense, that can be incurred and
paid. The loan agreement also contains various events of default, including a
decrease in the aggregate value of the SBIC's assets of 10% or greater.

The loan agreement with the SBA is due as follows:

          Maturity Date                      Amount
          -------------                      ------
          September 1, 2007                  $2,788,590

As of December 31, 2006, total assets and liabilities of the Trust are
$5,926,267 and $11,138,244, respectively. These factors raise substantial doubt
about the ability of the Trust to continue as a going concern. No assurance can
be given that the Trust will have sufficient cash flow to repay the debt or that
the Trust will be financially viable.

                                       15

<PAGE>


The Trust intends to make quarterly distributions of all cash revenues to the
extent it has cash available for such distributions. These distributions must be
approved by a majority of the Trustees and made within sixty days of the end of
each quarter. The Trustees declared no distributions during 2006. Distributions
from the SBIC to the Trust are restricted under SBA regulations. Under SBA
regulations, the SBIC subsidiary is not able to distribute income to the parent
unless it has "earnings available for distribution" as defined by the SBA.
Accordingly, the SBIC had no distributable cash.

Regardless of the ability to make current distributions in cash, the Trust has
accrued an 8% priority return to beneficial owners of the Trust since June 1997.
A 10% underwriting return was accrued through the final closing of the offering
on June 21, 1997. Accrued underwriting and priority returns amounted to
$7,357,139, $6,513,888, and $5,670,689 as of December 31, 2006, 2005, and 2004,
respectively. No distributions have been paid to beneficial owners of the Trust
since 1999.

Inflation
The Trust does not believe that moderate rates of inflation experienced in the
United States over the last three years have had a material effect on its
operations.

Item 7A. Quantitative and Qualitative Disclosure About Market Risk
         ---------------------------------------------------------
The Trust's investment objective is to achieve capital appreciation in the value
of its net assets and to achieve current income by making investments through
private placements in securities of small and medium sized privately and
publicly owned companies. Securities consist of subordinated debt, preferred
stock, or common stock, or rights to acquire common stock. Securities held for
investment are not held for trading purposes.

The primary risk of the portfolio is derived from the underlying ability of
investee companies to satisfy debt obligations and their ability to maintain or
improve common equity values. Levels of interest rates are not expected to
impact the Trust's valuations, but could impact the capability of investee
companies to repay debt or create and maintain shareholder value.

As of December 31, 2006, the portfolio is valued at fair value, as determined by
the Trustees. In determining fair value for securities and warrants, investments
are initially stated at cost until significant subsequent events and operating
trends require a change in valuation. Among the factors considered by the
Trustees in determining fair value of investments are the cost of the
investment, terms and liquidity of warrants, developments since the acquisition
of the investment, the sales price of recently issued securities, the financial
condition and operating results of the issuer, earnings trends and consistency
of operating cash flows, the long-term business potential of the issuer, the
quoted market price of securities with similar quality and yield that are
publicly traded and other factors generally pertinent to the valuation of
investments. The Trustees rely on financial data of the portfolio companies
provided by the management of the portfolio companies. The Trust Advisor
maintains ongoing contact with management of the portfolio companies including
participation on their Boards of Directors and review of financial information.

                                       16

<PAGE>


There is no assurance that any investment made by the Trust will be repaid or
re-marketed. Accordingly, there is a risk of total loss of any investment made
by the Trust. At December 31, 2006, the amount at risk was $5,663,816 and
consisted of the following:

                                             Cost                 Fair Value
                                       --------------            -------------
Debt securities and loans              $      516,769            $     908,974
Preferred stocks                            1,139,479                1,139,479
Warrants to purchase common stock              11,504                   11,504
Common stocks                               2,023,008                3,603,859
                                       --------------            -------------
                                       $    3,690,760            $   5,663,816
                                       ==============            =============

On September 1, 2003, the SBIC signed a loan agreement with the SBA. This debt
is carried on the balance sheet at its principal amount of $2,788,590 as of
December 31, 2006, which represents the fair value of the loan to the SBA.

Item 8.  Financial Statements and Supplementary Data
         -------------------------------------------
The following financial statements and related information as of the years ended
December 31, 2006, 2005 and 2004 are included in Item 8:

         Report of Independent Registered Public Accounting Firm
         Consolidated Statements of Assets and Liabilities
         Consolidated Statements of Operations
         Consolidated Statements of Changes in Net Assets (Liabilities)
         Consolidated Statements of Cash Flows
         Notes to Consolidated Financial Statements

                                       17

<PAGE>


McGLADREY & PULLEN
Certified Public Accountants



Report Of Independent Registered Public Accounting Firm



To the Independent Trustees and Stockholders
Berthel Growth & Income Trust I
Marion, Iowa

We have audited the accompanying consolidated statements of assets and
liabilities of Berthel Growth & Income Trust I and Subsidiary ("Trust") as of
December 31, 2006 and 2005, and the related consolidated statements of
operations, changes in net assets (liabilities) and cash flows for the years
ended December 31, 2006, 2005 and 2004. These financial statements are the
responsibility of the Trust's management. Our responsibility is to express an
opinion on these financial statements based on our audits.

We conducted our audits in accordance with the standards of the Public Company
Accounting Oversight Board (United States). Those standards require that we plan
and perform the audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements. An audit also includes assessing the accounting principles used and
significant estimates made by management, as well as evaluating the overall
financial statement presentation. We believe that our audits provide a
reasonable basis for our opinion.

In our opinion, the consolidated financial statements referred to above present
fairly, in all material respects, the financial position of Berthel Growth &
Income Trust I and Subsidiary as of December 31, 2006 and 2005, and the results
of their operations and their cash flows for the years ended December 31, 2006,
2005 and 2004, in conformity with U.S. generally accepted accounting principles.

The accompanying financial statements for the years ended December 31, 2006,
2005 and 2004 have been prepared assuming that the Trust will continue as a
going-concern. As discussed in Note 1 to the Financial Statements, the Trust
continues to have a deficiency in net assets, as well as net losses. In
addition, Berthel SBIC, LLC, a wholly owned subsidiary of the Trust, has agreed
to liquidate its portfolio assets in order to pay its indebtedness to the United
States Small Business Administration. These events raise substantial doubt about
the Trust's ability to continue as a going-concern. Management's plans
concerning these matters are also described in Note 1. The financial statements
do not include any adjustments that might result from the outcome of this
uncertainty.



McGladrey & Pullen LLP is a member firm of RSM International
An affiliation of separate and independent legal entities

                                       18

<PAGE>


As discussed in Note 1, the investment securities included in the financial
statements have been valued by the Independent Trustees ("Trustees") using
valuation criteria applicable to the licensee. This criteria was established in
accordance with Section 310(d)(2) of the Small Business Investment Act of 1958,
as amended, and 13 CFR 107.503(e)(2) of the SBA regulations. Such investment
securities have been valued at $5,663,816 (96% of assets) and $7,610,581 (96% of
assets) as of December 31, 2006 and 2005, respectively, whose values have been
estimated by the Trustees in the absence of readily ascertainable market values.
We have reviewed the procedures used by the Trustees in preparing the valuations
of investment securities and have inspected the underlying documentation and, in
the circumstances, we believe the procedures are reasonable and the
documentation appropriate. However, in the case of those securities with no
readily ascertainable market value, because of the inherent uncertainty of the
valuation, the Trustees' estimate of values may differ significantly from the
values that would have been used had a ready market existed for the securities
and the differences could be material.




                                            /s/  McGLADREY & PULLEN, LLP
                                            -----------------------------------
                                                 McGLADREY & PULLEN, LLP

Cedar Rapids, Iowa
March 12, 2007

                                       19

<PAGE>
<TABLE>
<CAPTION>


Berthel Growth & Income Trust I

Consolidated Statements Of Assets And Liabilities
December 31, 2006 And 2005


Assets (Note 6)                                                              2006            2005
--------------------------------------------                             ------------    ------------
<S>                                                                      <C>             <C>
Loans and Investments (cost 2006 $3,690,760;
  2005 $5,643,614) (Note 2)                                              $  5,663,816    $  7,610,581
Cash and cash equivalents                                                     257,035         336,447
Interest and dividends receivable, net of allowance for
  doubtful accounts                                                             5,416           7,338
                                                                         ------------    ------------
                                                                         $  5,926,267    $  7,954,366
                                                                         ============    ============



Liabilities and Net Assets (Liabilities)
--------------------------------------------
Liabilities:
  Accounts payable and other accrued expenses (Note 4)                   $     90,019    $    110,169
  Due to affiliate (Notes 3 and 4)                                            902,496         680,316
  Distributions payable to stockholders (Note 5)                            7,357,139       6,513,888
  Note payable (Note 6)                                                     2,788,590       6,075,209
                                                                         ------------    ------------
                                                                           11,138,244      13,379,582
                                                                         ------------    ------------

Net Assets (Liabilities), equivalent to $(494.45) per share in 2006;
  $(514.68) per share in 2005:
  Shares of beneficial interest, net of syndication costs of $1,507,237;
    25,000 shares authorized, 10,541 shares issued and
    outstanding in 2006 and 2005                                           (3,935,562)     (2,632,677)
Accumulated net realized losses                                            (3,249,471)     (4,759,506)
Accumulated net unrealized gains                                            1,973,056       1,966,967
                                                                         ------------    ------------
                                                                           (5,211,977)     (5,425,216)
                                                                         ------------    ------------
                                                                         $  5,926,267    $  7,954,366
                                                                         ============    ============


See Notes to Consolidated Financial Statements.

                                                  20

</TABLE>

<PAGE>
<TABLE>
<CAPTION>


Berthel Growth & Income Trust I

Consolidated Statements Of Operations
Years Ended December 31, 2006, 2005 And 2004


                                                        2006           2005           2004
---------------------------------------------------------------------------------------------
<S>                                                 <C>            <C>            <C>
Revenue:
  Interest income                                   $   112,639    $   106,660    $   257,468
  Dividend income                                        16,667         74,643         93,434
  Application, closing and other fees                     1,500            833          5,000
                                                    -----------    -----------    -----------
         Total revenue                                  130,806        182,136        355,902
                                                    -----------    -----------    -----------

Expenses:
  Management fees (Note 4)                              174,979        211,257        227,834
  Administrative services                                 4,004          3,992          4,066
  Trustee fees (Note 4)                                  24,000         24,000         24,000
  Professional fees                                      25,549         69,360         95,571
  Interest expense                                      314,381        556,276        572,585
  Other general and administrative expenses              47,527         53,035         46,795
                                                    -----------    -----------    -----------
         Total expenses                                 590,440        917,920        970,851
                                                    -----------    -----------    -----------

         Net investment (loss)                         (459,634)      (735,784)      (614,949)
                                                    -----------    -----------    -----------

Change in unrealized gain on investments (Note 2)         6,089        944,615          3,773

Realized gain on investments (Note 2)                 1,510,035        461,534             --
                                                    -----------    -----------    -----------
         Net gain on investments                      1,516,124      1,406,149          3,773
                                                    -----------    -----------    -----------

         Net increase (decrease) in net assets      $ 1,056,490    $   670,365    $  (611,176)
                                                    ===========    ===========    ===========

Per beneficial share data:
  Revenue                                           $     12.41    $     17.28    $     33.76
  Expenses                                               (56.01)        (87.08)        (92.10)
                                                    -----------    -----------    -----------
         Net investment (loss)                           (43.60)        (69.80)        (58.34)
                                                    -----------    -----------    -----------

Change in unrealized gain on investments                   0.58          89.61           0.36
Realized gain on investments                             143.25          43.79             --
                                                    -----------    -----------    -----------
         Net gain on investments                         143.83         133.40           0.36
                                                    -----------    -----------    -----------

         Net increase (decrease) in net assets      $    100.23    $     63.60    $    (57.98)
                                                    ===========    ===========    ===========

Weighted average shares                                  10,541         10,541         10,541
                                                    ===========    ===========    ===========


See Notes to Consolidated Financial Statements.

                                              21

</TABLE>

<PAGE>
<TABLE>
<CAPTION>


Berthel Growth & Income Trust I

Consolidated Statements Of Changes In Net Assets (Liabilities)
Years Ended December 31, 2006, 2005 And 2004


                                      Shares of Beneficial Interest      Accumulated     Accumulated       Total Net
                                        -------------------------       Net Realized    Net Unrealized      Assets
                                          Shares          Amount          (Losses)      Gains (Losses)   (Liabilities)
                                        -----------     -----------      -----------      -----------     -----------
<S>                                         <C>        <C>              <C>              <C>             <C>
Balance, December 31, 2003                   10,541     $   406,845      $(5,221,040)     $ 1,018,579     $(3,795,616)
  Net investment (loss)                        --          (614,949)            --               --          (614,949)
  Unrealized gain on investments               --              --               --              3,773           3,773
  Realized gain on investments                 --              --               --               --              --
  Distributions payable to stockholders
    ($80 per beneficial share)                 --          (845,590)            --               --          (845,590)
                                        -----------     -----------      -----------      -----------     -----------
Balance, December 31, 2004                   10,541      (1,053,694)      (5,221,040)       1,022,352      (5,252,382)
  Net investment (loss)                        --          (735,784)            --               --          (735,784)
  Unrealized gain on investments               --              --               --            944,615         944,615
  Realized gain on investments                 --              --            461,534             --           461,534
  Distributions payable to stockholders
    ($80 per beneficial share)                 --          (843,199)            --               --          (843,199)
                                        -----------     -----------      -----------      -----------     -----------
Balance, December 31, 2005                   10,541      (2,632,677)      (4,759,506)       1,966,967      (5,425,216)
  Net investment (loss)                        --          (459,634)            --               --          (459,634)
  Unrealized gain on investments               --              --               --              6,089           6,089
  Realized gain on investments                 --              --          1,510,035             --         1,510,035
  Distributions payable to stockholders
   ($80 per beneficial share)                  --          (843,251)            --               --          (843,251)
                                        -----------     -----------      -----------      -----------     -----------
Balance, December 31, 2006                   10,541     $(3,935,562)     $(3,249,471)     $ 1,973,056     $(5,211,977)
                                        ===========     ===========      ===========      ===========     ===========


See Notes to Consolidated Financial Statements.

                                                          22

</TABLE>

<PAGE>
<TABLE>
<CAPTION>


Berthel Growth & Income Trust I

Consolidated Statements Of Cash Flows
Years Ended December 31, 2006, 2005 And 2004


                                                              2006           2005           2004
                                                           -----------    -----------    -----------
<S>                                                        <C>            <C>            <C>
Cash Flows from Operating Activities:
  Net increase (decrease) in net assets                    $ 1,056,490    $   670,365    $  (611,176)
  Adjustments to reconcile net increase (decrease)
    in net assets to net cash provided by
    operating activities:
    Accretion of discount on debt securities                      (445)       (14,120)       (21,062)
    Change in unrealized (gain) on investments                  (6,089)      (944,615)        (3,773)
    Realized (gain) on investments                          (1,510,035)      (461,534)          --
    Changes in operating assets and liabilities:
      Loans and investments                                  3,463,334      1,889,470        599,908
      Interest and dividends receivable                          1,922        102,845        (44,624)
      Accrued interest payable                                    --          (97,014)        26,838
      Accounts payable and other accrued expenses              (20,150)        22,650         21,200
      Due to affiliate                                         222,180        261,410        331,189
      Deferred income                                             --             (833)        (5,000)
                                                           -----------    -----------    -----------

         Net cash provided by operating activities           3,207,207      1,428,624        293,500
                                                           -----------    -----------    -----------

Cash Flows (Used In) Financing Activities,
payment of note payable                                     (3,286,619)    (1,351,710)      (282,253)
                                                           -----------    -----------    -----------

         Net increase (decrease) in cash and
         cash equivalents                                      (79,412)        76,914         11,247

Cash and Cash Equivalents:
  Beginning                                                    336,447        259,533        248,286
                                                           -----------    -----------    -----------
  Ending                                                   $   257,035    $   336,447    $   259,533
                                                           ===========    ===========    ===========

Supplemental Disclosure of Cash Flow Information,
  cash paid for interest                                   $   314,381    $   653,290    $   545,747

Supplemental Disclosure of Noncash Financing Activities,
  distributions payable to stockholders                        843,251        843,199        845,590


See Notes to Consolidated Financial Statements.

                                                  23
</TABLE>
<PAGE>




Berthel Growth & Income Trust I

Notes To Consolidated Financial Statements
--------------------------------------------------------------------------------


Note 1.  Organization and Significant Accounting Policies


Organization:

   Berthel Growth & Income Trust I (the "Trust") is registered under the
   Investment Company Act of 1940, as amended, as a nondiversified, closed-end
   management investment company electing status as a business development
   company. The Trust was formed on February 10, 1995 under the laws of the
   State of Delaware and received approval from the Securities and Exchange
   Commission to begin offering shares of beneficial interest (the "Shares")
   effective June 21, 1995. The Trust's investment objective is to achieve
   capital appreciation in the value of its net assets and to achieve current
   income principally by making investments through private placements in
   securities of small and medium-sized privately and publicly owned companies.
   Securities to be purchased will consist primarily of subordinated debt,
   common stock or preferred stock, combined with equity participation in common
   stock or rights to acquire common stock. The Trust offered a minimum of 1,500
   shares and a maximum of 50,000 shares at an offering price of $1,000 per
   share. The minimum offering of 1,500 shares sold was reached on August 30,
   1995. The offering period expired June 21, 1997.

   The Trust will terminate upon the liquidation of all of its investments, but
   no later than June 21, 2007. However, the Independent Trustees have the right
   to extend the term of the Trust for up to two (2) additional one-year periods
   if they determine that such extensions are in the best interest of the Trust
   and in the best interest of the shareholders, after which the Trust will
   liquidate any remaining investments as soon as practicable but in any event
   within three years. It is management's intention to extend the Trust for two
   years and has applied for an extension of the loan through September of 2009
   which is subject to approval by the SBA.

   Berthel SBIC, LLC (the "SBIC"), a wholly owned subsidiary of the Trust within
   the meaning of Section 2(a)(43) of the Investment Company Act of 1940, was
   formed during 1997 and received a license to operate as a Small Business
   Investment Company from the Small Business Administration ("SBA") on May 4,
   1998. The Trust funded the SBIC with a capital contribution of $5,000,000,
   the minimum amount eligible to be contributed in order to receive leverage
   under the SBA Small Business Investment Company program. During 2001, the
   Trust contributed an additional $700,000 in capital to the SBIC. The Trustees
   also serve as the Independent Managers of the SBIC.

   Berthel Fisher & Company Planning, Inc. (the "Trust Advisor") is the Trust's
   investment advisor and manager. TJB Capital Management, Inc. (the "Corporate
   Trustee") provides certain management services necessary for the conduct of
   the Trust's business. Shares were offered by Berthel Fisher & Company
   Financial Services, Inc. (the "Dealer Manager"). Each of these three entities
   is a wholly or majority owned subsidiary of Berthel Fisher & Company.

   Going-concern considerations: During the years ended December 31, 2006 and
   2005, the Trust continues to have a deficiency in net assets as well as net
   investment losses. In addition, the SBIC was in violation of the maximum
   capital impairment percentage permitted by the SBA. The SBIC received notice
   of default from the Small Business Administration advising that the SBIC must
   cure its default on the outstanding debentures prior to March 22, 2002. Since
   March 2002, the capital impairment violation has not been cured.

   On August 22, 2002, the SBA notified the SBIC that all debentures, accrued
   interest and fees were immediately due and payable. The SBIC was transferred
   into the Liquidation Office of the SBA effective August 22, 2002. On
   September 1, 2003, management signed a loan agreement with the SBA for
   $8,100,000 (after paying $1,400,000 on the $9,500,000 debentures) with a term
   of 48 months at an interest rate of 7.49%. The note payable is secured by
   substantially all assets of the SBIC. The loan agreement contains various
   covenants including establishment of a reserve account in the amount of
   $250,000 with excess cash paid to the SBA, limits on the amounts of operating
   expenses that can be incurred and paid. The loan agreement also contains
   various events of default, including a decrease in the aggregate value of the
   SBIC's assets of 10% or greater.

                                       24

<PAGE>



Berthel Growth & Income Trust I

Notes To Consolidated Financial Statements
--------------------------------------------------------------------------------


Note 1.   Organization and Significant Accounting Policies (Continued)


   These factors may raise substantial doubt about the ability of the Trust to
   continue as a going-concern. No assurance can be given that the Trust will
   have sufficient cash flow to repay the debt or that the Trust will be
   financially viable.

   Consolidation: The consolidated financial statements include the accounts of
   the Trust and its wholly owned subsidiary. All significant intercompany
   balances and transactions have been eliminated in consolidation.

   Use of estimates: The preparation of the Trust's consolidated financial
   statements in conformity with accounting principles generally accepted in the
   United States of America requires management to make estimates and
   assumptions that affect the reported amounts of assets and liabilities and
   disclosure of contingent assets and liabilities at the date of the financial
   statements and the reported amounts of revenues and expenses during the
   reporting period. Actual results could differ significantly from those
   estimates. Material estimates that are particularly susceptible to
   significant change in the near-term relate to the valuation by the Trustees
   of not readily marketable securities and allowance for doubtful accounts.

   Loans and investments: In accordance with accounting practices, investments
   that are not readily marketable are valued at fair value, as determined by
   the Trustees. The resulting difference between cost and market is included in
   the consolidated statements of operations.

   In determining fair value for securities and warrants not readily marketable,
   investments are initially stated at cost until significant subsequent events
   and operating trends require a change in valuation. Among the factors
   considered by the Trustees in determining fair value of investments are the
   cost of the investment, terms and liquidity of warrants, developments since
   the acquisition of the investment, the sales price of recently issued
   securities, the financial condition and operating results of the issuer,
   earnings trends and consistency of operating cash flows, the long-term
   business potential of the issuer, the quoted market price of securities with
   similar quality and yield that are publicly traded and other factors
   generally pertinent to the valuation of investments. The Trustees, in making
   their evaluation, have relied on financial data of the portfolio companies
   provided by the management of the portfolio companies.

   Net income (loss) per beneficial share: Net income (loss) per beneficial
   share is based on the weighted average number of shares outstanding.

                                       25

<PAGE>


Berthel Growth & Income Trust I

Notes To Consolidated Financial Statements
--------------------------------------------------------------------------------


Note 2.  Loans and Investments


<PAGE>
<TABLE>
<CAPTION>


                                                                                                                Valuation
                                                                                                       -----------------------------
                 Company                                            Security                               2006           2005
------------------------------------------------------------------------------------------------------------------------------------

<S>                                                                                                       <C>           <C>
Communications and Software:
EDmin.com, Inc.                                      261,203 shares of 9% Cumulative Redeemable
---------------                                      Convertible Series A Preferred Stock;
  Provider of internet-based software products,      call options beginning May 2004.                     $   972,812   $   972,812
  technology planning and systems integration
  to educational institutions.

Media Sciences International, Inc.                   Options to purchase 20,000 common shares as
----------------------------------                   of December 31, 2005 at prices ranging from
(Formerly Cadapult Graphic Systems, Inc.)            $ 2.00 to $ 3.13 per share, expiring
-----------------------------------------            December 2009 through July 2011. *                          --            --
  Provider of computer graphic systems,
  peripherals, supplies and services to
  visual communicators and graphics                  409,200 shares of common stock as of
  professionals.                                     December 31, 2005. *                                        --         939,114
                                                                                                       -----------------------------


Total communications and software (17% and 25% of total loans and investments as of
December 31, 2006 and 2005, respectively)                                                                     972,812     1,911,926
                                                                                                       -----------------------------


Health Care Products and Services:
Physicians Total Care, Inc.                          10% uncollateralized note due on demand as of
---------------------------                          December 31, 2005.                                             *     1,100,000
Provider of prescription medication systems
to physicians' offices for point-of-care             8% uncollateralized promissory note due
dispensing to patients.                              December 31, 2009.                                       700,000          --

                                                     Warrants to purchase 350,000 common shares
                                                     as of December 31, 2005 at $.035 to $5 per share.*          --            --

                                                     100,000 and 700 shares of common stock as of
                                                     December 31, 2006 and 2005, respectively.*                  --            --

Inter-Med, Inc.                                      2,491.3031 common shares; put options beginning
---------------                                      May 2006 and call options beginning May 2007, both
Manufacturer and importer of products                expiring upon the occurrence of a specified event.*       672,279      672,279
for the U.S. dental market

                                                     12% promissory note, $50,000 due July 2006
                                                     (at December 31, 2005).                                    --           49,555
                                                                                                       -----------------------------
                                                               Subtotal forward                           $ 1,372,279   $ 1,821,834

                                                                 26
</TABLE>

<PAGE>
<TABLE>
<CAPTION>


Berthel Growth & Income Trust I

Notes To Consolidated Financial Statements
--------------------------------------------------------------------------------


Note 2.   Loans and Investments (Continued)


                                                                                                         Valuation     Valuation
                                                                                                       -----------------------------
                 Company                                            Security                               2006           2005
------------------------------------------------------------------------------------------------------------------------------------

                                                        <S>                                               <C>           <C>
                                                        Subtotal forward                                  $ 1,372,279   $ 1,821,834
Future Matrix Interventional, Inc.         Warrants to purchase 6% of common stock at $.01 per share,
----------------------------------         with put options beginning February 2005. *                           --       2,460,000
  (formerly Futuremed)
Medical device manufacturer.               905,203 shares of common stock at December 31, 2006. *           2,460,000          --

                                           1,899,783 shares of CeloNova Biosciences, Inc. (f/k/a IMED)
                                           common stock (a Future Matrix affiliate). *                           --            --
                                                                                                       -----------------------------
Total health care products and services (68% and 56% of total loans and investments as of
December 31, 2006 and 2005, respectively)                                                                   3,832,279     4,281,834
                                                                                                       -----------------------------


Manufacturing:
Feed Management Systems                    435,590 shares of Feed Management Systems common stock,
-----------------------                    converted from Easy Systems Series B Cumulative
(Formerly Easy Systems, Inc.)              Redeemable Preferred Stock and 11% unsecured subordinated
Provides control systems and proprietary   debenture. *                                                       304,913       304,913
software primarily for the agricultural
industry.

The Schebler Company                       13% subordinated note due January 2007.                            166,666       166,666
--------------------
Manufacturer of industrial equipment.
                                           Warrants to purchase 1.66% of common shares at $.01 per
                                           share, with put options beginning January 2007 and
                                           ending January 2022 or upon the occurrence of a specified
                                           event. *                                                            11,504        11,504

                                           166,666 shares of 10% convertible cumulative preferred
                                           stock, with put options beginning January 2007 and ending
                                           January 2022 or upon the occurrence of a specified event.          166,667       166,667

                                           166,666 shares of common stock, with put options beginning
                                           January 2007 and ending January 2022 or upon the
                                           occurrence of a specified event. *                                 166,667       166,667
                                                                                                       -----------------------------
                                           Subtotal forward                                               $   816,417   $   816,417

                                                                 27
</TABLE>

<PAGE>
<TABLE>
<CAPTION>


Berthel Growth & Income Trust I

Notes To Consolidated Financial Statements
--------------------------------------------------------------------------------


Note 2.   Loans and Investments (Continued)


                                                                                                         Valuation     Valuation
                                                                                                       -----------------------------
                 Company                                            Security                               2006           2005
------------------------------------------------------------------------------------------------------------------------------------
                                           <S>                                                            <C>           <C>
                                           Subtotal forward                                               $   816,417   $   816,417
Childs & Albert
---------------
Racing engine component manufacturer.      12.5% promissory note due October 2005.                               --         400,000

                                           Warrants to purchase 833.334 shares of common stock at
                                           $10 per share expiring September 2010; put and call
                                           options beginning September 2005 and ending
                                           September 2008. *                                                     --            --
                                                                                                       -----------------------------
Total manufacturing (14% and 16% of total loans and investments as of
December 31, 2006 and 2005, respectively)                                                                     816,417     1,216,417
                                                                                                       -----------------------------


Other service industries:
Kinseth Hospitality Company, Inc.
---------------------------------
Hotel and restaurant industries.           15% secured note receivable due March 2007.                         42,308       200,404
                                                                                                       -----------------------------
Total other service industries (1% and 3% of total loans and investments as of
December 31, 2006 and 2005, respectively)                                                                      42,308       200,404
                                                                                                       -----------------------------

Total loans and investments                                                                               $ 5,663,816   $ 7,610,581
                                                                                                       =============================

* Non-income producing investment.


There were no purchases of loans and investments for the years ending December
31, 2006, 2005, and 2004. Sales of loans and investments for the years ending
December 31, 2006, 2005, and 2004 were $3,515,585, $1,933,802, and $685,000,
respectively.

The changes in unrealized gains and losses and the realized gains and losses on
investments recognized during the previous three years are summarized below:



                                                             2006           2005          2004
                                                         -------------------------------------------
                   Unrealized gains (losses):
                   Childs & Albert, Inc.                 $   472,065    $  (472,065)   $        --
                   Physicians Total Care, Inc.               100,000      1,100,000             --
                   EDmin.com                                      --             --       (631,264)
                   Media Sciences International             (565,976)       (50,382)       635,037
                   Pickerman's Development Company                --        633,032             --
                   IMED Devices, Inc.                             --       (265,970)            --
                                                         -------------------------------------------
                   Total unrealized gain (loss)          $     6,089    $   944,615    $     3,773
                                                         ===========================================

                   Realized gains (losses):
                   FutureMatrix Interventional, Inc.     $   500,000    $        --             --
                   Childs & Albert, Inc.                    (172,065)            --             --
                   International Pacific Seafoods                 --        100,000             --
                   Media Sciences International            1,182,100        994,566             --
                   Pickerman's Development Company                --       (633,032)            --
                                                         -------------------------------------------
                   Total realized gain (loss)            $ 1,510,035        461,534             --
                                                         ===========================================

                                                                 28
</TABLE>
<PAGE>



Note 3.  Due to Affiliates


Due to affiliates is comprised of the following as of December 31, 2006 and
2005:


                                                              2006        2005
                                                            --------    --------

Accrued management fees                                     $690,710    $515,731
Note payable to Trust Advisor (non-interest bearing)          10,000      10,000
Other amounts due Trust Advisor                              201,786     154,585
                                                            --------    --------
Due to affiliates                                           $902,496    $680,316
                                                            ========    ========


On February 7, 2007, management of the Trust Advisor decided to waive the
management fees for 2006. The Trust accrued management fees payable to the Trust
Advisor for 2006 totaling $174,979 and this forgiveness of debt will be
reflected in the financial statements during the first quarter of 2007. At this
time, the Trust Advisor has not waived management fees relating to 2007 or to
years prior to 2006. The management fees relating to 2005 and prior total
$515,731.

Note 4.  Related Party Transactions


The Trust has entered into a management agreement with the Trust Advisor that
provides for incentive compensation to the Trust Advisor based on the capital
appreciation of the Trust's investments. The Trust pays the Trust Advisor an
annual management fee equal to 2.5% of the combined temporary investment in
money market securities and loans and investments of the Trust. The management
fee is paid quarterly, in arrears, and is determined by reference to the value
of the assets of the Trust as of the first day of that quarter. Management fees
incurred during the years ended December 31, 2006, 2005 and 2004 relating to
this agreement aggregated $174,979, $211,257 and $227,834, respectively. As part
of the loan agreement with the SBA, these expenses can continue to be accrued,
but cannot be paid until the SBA loan is paid in full.

The Trust pays a fee to the independent trustees representing compensation for
services rendered to the Trust. During each of the years ended December 31,
2006, 2005 and 2004, trustee fees totaling $24,000 were accrued. As part of the
loan agreement with the SBA, these expenses can continue to be accrued, but
cannot be paid until the SBA loan is paid in full. The balance payable is
$90,000 and $66,000 as of December 31, 2006 and 2005, respectively.


Note 5.  Distributions Payable to Stockholders


Distributions payable represents a 10% accrued underwriting return
("Underwriting Return") and an 8% accrued priority return ("Priority Return").
The Underwriting Return is based on actual interest earned by the Trust on the
investors funds held in escrow through the initial closing, plus 10% simple
annual interest, computed on a daily basis from the initial closing (August 31,
1995) until the final closing (June 21, 1997). The Priority Return is based on
8% simple annual interest computed from final closing on each stockholder's
investment balance in the Trust.

                                       29

<PAGE>


Note 5.       Distributions Payable to Stockholders (Continued)


The Trust intends to make quarterly distributions of all cash revenues to the
extent that the Trust has cash available for such distributions. These
distributions must be approved by a majority of the Independent Trustees and
made within 60 days of the end of each quarter. SBA regulations govern the
amount of the SBIC's income available for distributions. As of December 31, 2006
and 2005, no amounts were available for distribution within the SBIC under the
SBA regulations. The distributions payable balance comprises the following:


                                       Underwriting     Priority
                                         Return          Return          Total
                                        ----------     ----------     ----------

Balance, December 31, 2004              $  526,401     $5,144,288     $5,670,689
Distributions earned                            --        843,199        843,199
                                        ----------     ----------     ----------
Balance, December 31, 2005                 526,401      5,987,487      6,513,888
Distributions earned                            --        843,251        843,251
                                        ----------     ----------     ----------
Balance, December 31, 2006              $  526,401     $6,830,738     $7,357,139
                                        ==========     ==========     ==========


Note 6.  Note Payable


The SBIC issued debentures payable to the SBA totalling $9,500,000 since
inception. The original debenture terms required semiannual payments of interest
at annual interest rates ranging from 6.353% to 7.64%. In addition to interest
payments, the SBIC was required to pay an annual 1% SBA loan fee on the
outstanding debentures balance.

On August 22, 2002, the SBA notified the SBIC that all debentures, accrued
interest and fees were immediately due and payable. The SBIC submitted a plan of
debt and interest repayment to the SBA on January 31, 2003 and received a
response dated February 21, 2003. On September 1, 2003, management signed a loan
agreement ("Agreement") with the SBA for $8,100,000 (after paying $1,400,000 on
the $9,500,000 debentures) with a term of 48 months at an interest rate of
7.49%. The Agreement requires principal payments on the debt to the extent the
SBIC receives cash proceeds exceeding $250,000 for the sale or liquidation of
investments. As of December 31, 2006, $2,788,590 is outstanding under the loan
agreement with final payment due September 1, 2007. The note payable is secured
by substantially all assets of the SBIC. The loan agreement contains various
covenants, including limits on the amounts of expenses, other than interest
expense, that can be incurred and paid. The loan agreement also contains various
events of default, including a decrease in the aggregate value of the SBIC's
assets of 10% or greater.


Note 7.  Federal Income Taxes


The Trust has received an opinion from counsel that it will be treated as a
partnership for federal income tax purposes. As such, under present income tax
laws, no income taxes will be reflected in these financial statements as taxable
income or loss of the Trust is included in the income tax returns of the
investors.

                                       30

<PAGE>
<TABLE>
<CAPTION>


Note 8.   Financial Highlight Information


In accordance with financial reporting requirements applicable to investment
companies including funds that are exempt from registration requirements, the
Trust was required to disclose certain financial highlight information.

Due to the net liability position of the Trust as of December 31, 2006, the
negative ratios do not represent meaningful data and will, therefore, be
excluded from disclosure in the footnotes.


Note 9.  Quarterly Financial Information (Unaudited)




                                                 First          Second          Third         Fourth          Total
                                              -----------    -----------    -----------    -----------    -----------
                                                                                2006
                                              -----------    -----------    -----------    -----------    -----------
<S>                                           <C>            <C>            <C>            <C>            <C>
Total revenue                                 $    22,980    $    36,626    $    39,994    $    31,206    $   130,806
Net investment (loss)                            (158,955)      (130,238)       (95,475)       (74,966)      (459,634)
Unrealized gain (loss) on investments             (51,844)      (514,132)       100,000        472,065          6,089
Realized gain (loss) on investments               522,884      1,159,217             --       (172,066)     1,510,035
Net increase (decrease) in net assets             312,085        514,847          4,525        225,033      1,056,490
Increase (decrease) in net assets
per beneficial share                          $     29.61    $     48.84    $      0.43    $     21.35    $    100.23


                                                                                2005
                                              -----------    -----------    -----------    -----------    -----------

Total revenue                                 $    83,193    $    82,506    $    56,390    $   (39,953)   $   182,136
Net investment (loss)                            (133,230)      (140,441)      (162,888)      (299,225)      (735,784)
Unrealized gain (loss) on investments             376,153       (266,002)       162,702        671,762        944,615
Realized gain on investments                       79,211             --             --        382,323        461,534
Net increase (decrease) in net assets             322,134       (406,443)          (186)       754,860        670,365
Increase (decrease) in net assets
per beneficial share                          $     30.56    $    (38.56)   $     (0.02)   $     71.61    $     63.60

                                                           31
</TABLE>

<PAGE>







Item 9. Changes in and Disagreements with Accountants on Accounting and
        ---------------------------------------------------------------
        Financial Disclosure
        --------------------
Within the two years prior to the date of the most recent financial statements,
there have been no changes in or disagreements with accountants of the Trust.

Item 9A. Controls and Procedures
         -----------------------
Evaluation of Disclosure Controls and Procedures
An evaluation was performed under the supervision and with the participation of
the Trust's management, including the Chief Executive Officer (CEO) and Chief
Financial Officer (CFO), of the effectiveness of our disclosure controls and
procedures. Based on that evaluation, the CEO and CFO concluded that as of the
end of the period covered by this report, our disclosure controls and procedures
are effective to provide reasonable assurance that information required to be
disclosed by us in reports that we file or submit under the Securities Exchange
of 1934 is recorded, processed, summarized, and timely reported as provided in
the SEC's rules and forms.

Changes in Internal Controls
No changes occurred since the quarter ended September 30, 2006 in our internal
controls over financial reporting that have materially affected, or are
reasonably likely to materially affect, our internal control over financial
reporting.



                                    PART III

Item 10. Directors and Executive Officers of the Registrant
         --------------------------------------------------
A management board consisting of the Independent Trustees and the Trust Advisor
is responsible for the management of the Trust and its business.

Trustees of the Registrant:
---------------------------
     Corporate Trustee - TJB Capital Management, Inc. was organized as a
     Delaware corporation on January 25, 1995 for the purpose of organizing the
     Trust. The principal office of the Corporate Trustee is located at 1105 N.
     Market Street, Suite 1300, Wilmington, Delaware, 19801. The Corporate
     Trustee is an affiliate of the Trust Advisor.

     Henry T. Madden (age 77) - Mr. Madden is an Independent Trustee of the
     Trust. He was awarded a B.S.M.E. from the University of Notre Dame in 1951
     and an M.B.A. from the University of Pittsburgh in 1966. He began his
     career as an Industrial Engineer, then Quality Control Manager in Technical
     Ceramics for 3M Company in Chattanooga, Tennessee. He became Manager of
     Production Engineering, then Manager for a 1,500 employee, $50 million in
     sales Allis-Chalmers Plant, manufacturing power and distribution
     transformers in Pittsburgh, Pennsylvania. In 1966, he became General Plant
     Manager of the Allis-Chalmers, Cedar Rapids, Iowa Plant manufacturing
     construction machinery. In 1969, Mr. Madden became Division Manager for
     Hydraulic Truck Cranes for Harnischfeger Corporation. In 1975 Mr. Madden
     became President, Harnischfeger GMBH in Dortmund, West Germany, a joint
     venture with August Thyssen A.G. of West Germany, manufacturing truck
     cranes, creating a 100 million deutsche mark business. He also served as
     Managing Director for Harnischfeger International Corporation for Europe,
     East Europe, and North and West Africa, responsible for all product sales
     in those areas. In 1981, Mr. Madden became a consultant to and assumed the
     responsibilities of General Manager of Oak Hill Engineering Inc., in Cedar
     Rapids, Iowa, a manufacturer of wire harnesses. In 1983, he started a
     company, Enertrac Inc., designing, manufacturing and marketing
     communications systems. Mr. Madden financed Enertrac Inc. through an
     initial public offering and merged it into another company in 1986. Mr.
     Madden organized the Institute for Entrepreneurial Management in the
     University of Iowa College of Business Administration in 1986, advising
     potential and new entrepreneurs and teaching courses on entrepreneurship in
     the MBA program, along with courses in Corporate Strategy in the Executive
     MBA and MBA programs. Mr. Madden has been consulting with developmental
     stage companies since 1981.

                                       32

<PAGE>


     Mary Quass (age 57) - Ms. Quass was elected as an Independent Trustee,
     effective February 5, 1999. She received a BA Degree from the University of
     Northern Iowa in 1972. In 1981, she was appointed General Sales Manager of
     KSO and later in 1982 became Vice President and General Manager of KHAK
     AM/FM. In 1988, Ms. Quass formed Quass Broadcasting Company, Inc., which
     merged with CapStar Broadcasting Partners to form Central Star
     Communications, Inc. in 1998. She held the position of President of Quass
     Broadcasting until 1998. Upon the merger, Quass served as President and CEO
     of Central Star Communications. In 1999 Central Star/Capstar Partners
     merged with Chancellor Media to form AMFM, Inc. and Quass continued to
     serve as CEO and President of Central Star Communications under AMFM until
     she left the company in early 2000. Quass formed a LLC to acquire
     businesses and provide consulting services. In 2002 she formed NewRadio
     Group, LLC which owns and operates radio stations.

Executive Officers and Directors of the Trust Advisor:
------------------------------------------------------
     Thomas J. Berthel (age 55) - Mr. Berthel was elected President of the Trust
     Advisor in August, 2001, and also serves as Chief Executive Officer and
     Chairman of the Board of the Trust Advisor and as Chief Executive Officer
     of Berthel Fisher and Financial Services. He has held these positions since
     1985. Until June, 1993, Mr. Berthel served as President of the Financial
     Services. From 1993 until the present he has served as Chief Executive
     Officer and as a Director of the Financial Services. Mr. Berthel is also
     President and a Director of various other subsidiaries of Berthel Fisher
     that act or have acted as general partners of separate private leasing
     programs and two publicly sold leasing programs. He serves as the Chairman
     of the Board of Amana Colonies Golf Course, Inc., and, served on the Board
     of Directors of Intellicall, Inc., an advanced telecommunications
     technologies company in Carrollton, Texas, from November, 1995 to December,
     1999. Mr. Berthel holds a Financial and Operation Principal license issued
     by the National Association of Securities Dealers, Inc. He is also a
     Certified Life Underwriter. Mr. Berthel holds a bachelor's degree from St.
     Ambrose College in Davenport, Iowa (1974). He also holds a Master's degree
     in Business Administration from the University of Iowa in Iowa City, Iowa
     (1993).

     Ronald O. Brendengen (Age 52) - Mr. Brendengen is the Chief Operating
     Officer, Chief Financial Officer, Treasurer and a Director of the Trust
     Advisor. He has served since 1985 as Controller and since 1987 as the
     Treasurer and a Director of Berthel Fisher. He was elected Secretary and
     Chief Financial Officer in 1994, and Chief Operating Officer in January
     1998, of Berthel Fisher & Company. He also serves as Chief Financial
     Officer, Treasurer and a Director of each subsidiary of Berthel Fisher. Mr.
     Brendengen holds a certified public accounting certificate and worked in
     public accounting during 1984 and 1985. From 1979 to 1984, Mr. Brendengen
     worked in various capacities for Morris Plan and MorAmerica Financial
     Corp., Cedar Rapids, Iowa. Mr. Brendengen attended the University of Iowa
     before receiving a bachelor's degree in Accounting and Business
     Administration with a minor in Economics from Mt. Mercy College, Cedar
     Rapids, Iowa in 1978.

     Leslie D. Smith (Age 59) - Mr. Smith is a Director and the Secretary of the
     Trust Advisor. In 1994 Mr. Smith was named General Counsel of Berthel
     Fisher & Company. Mr. Smith was awarded his B.A. in Economics in 1976 from
     Iowa Wesleyan College, Mount Pleasant, Iowa, and his J.D. in 1980 from the
     University of Dayton School of Law, Dayton, Ohio. Mr. Smith was employed as
     Associate Attorney and as a Senior Attorney for Life Investors Inc., Cedar
     Rapids, Iowa, from 1981 through 1985 where he was responsible for managing
     mortgage and real estate transactions. From 1985 to 1990 Mr. Smith was
     General Counsel for LeaseAmerica Corporation, Cedar Rapids, Iowa. In that
     capacity, Mr. Smith performed all duties generally associated with the
     position of General Counsel. From 1990 to 1992, Mr. Smith was Operations
     Counsel for General Electric Capital Corporation located in Cedar Rapids,
     Iowa. From 1993 to 1994, Mr. Smith was employed as Associate General
     Counsel for Gateway 2000, Inc. in North Sioux City, South Dakota.

                                       33

<PAGE>
<TABLE>
<CAPTION>


Item 11. Executive Compensation
         ----------------------
Set forth is the information relating to all direct remuneration paid or accrued
by the Registrant.


(A)                                        (B)           (C)                 (C1)                  (C2)                (D)

                                                          Cash and                        Securities of property    Aggregate of
                                                   cash equivalent                            insurance benefits    contingent
Name of individual and                    Year            forms of                              or reimbursement    or forms
capacities in which served                Ended       remuneration           Fees              personal benefits    of remuneration
-----------------------------------------------------------------------------------------------------------------------------------
<S>                                       <C>            <C>            <C>                         <C>                 <C>
TJB Capital Management, Inc.              2006           $0             $           0               $0                  $0
Corporate Trustee                         2005           $0             $           0               $0                  $0
                                          2004           $0             $           0               $0                  $0


Henry T. Madden                           2006           $0             $      12,000               $0                  $0
Independent Trustee                       2005           $0             $      12,000               $0                  $0
                                          2004           $0             $      12,000               $0                  $0


Mary Quass                                2006           $0             $      12,000               $0                  $0
Independent Trustee                       2005           $0             $      12,000               $0                  $0
                                          2004           $0             $      12,000               $0                  $0

Berthel Fisher & Company Planning, Inc.   2006           $0             $     174,979  (1)          $0                  $0
Trust Advisor                             2005           $0             $     211,257               $0                  $0
                                          2004           $0             $     231,900               $0                  $0

(1) On February 7, 2007, management of the Trust Advisor decided to waive the
management fees for 2006. The Trust accrued management fees payable to the Trust
Advisor for 2006 totaling $174,979 and this forgiveness of debt will be
reflected in the financial statements during the first quarter of 2007. At this
time, the Trust Advisor has not waived management fees relating to 2007 or to
years prior to 2006. The management fees relating to 2005 and prior total
$515,731.

                                       34

</TABLE>

<PAGE>


Item 12. Security Ownership of Certain Beneficial Owners and Management
         --------------------------------------------------------------
No person owns of record, or is known by the Registrant to own beneficially,
more than five percent of the shares.

Item 13. Certain Relationships and Related Transactions
         ----------------------------------------------
Related party transactions are described in notes 3 and 4 of the notes to the
consolidated financial statements.

Item 14. Principal Accountant Fees and Services
         --------------------------------------
Audit and Non-Audit Fees
The following table presents fees for professional audit services rendered by
McGladrey & Pullen, LLP for the audit of Berthel Growth & Income I's annual
financial statements for the years ended December 31, 2006 and 2005, and fees
billed for other services rendered by McGladrey & Pullen, LLP and RSM McGladrey,
Inc. (an affiliate of McGladrey & Pullen, LLP).

                                               2006                  2005
                                          -----------           -----------
Audit Fees (1)                            $    48,850           $    45,351
Audit-Related Fees (2)                          4,200                 4,160
Tax Services (3)                                4,500                 3,900
All Other Fees                                    -0-                   -0-
                                          -----------           -----------
                                          $    57,550           $    53,411
                                          ===========           ===========

(1) Audit fees consist of fees for professional services rendered for the audit
of Berthel Growth & Income Trust I's financial statements and review of
financial statements included in the Trust's third quarter report and services
normally provided by the independent auditor in connection with statutory and
regulatory filings or engagements.

(2) Audit-related fees consist of fees for professional services rendered for
the custody report examination required by rule 17f-1 and rule 17f-2 under the
Investment Company Act of 1940 of Berthel Growth & Income Trust I and its
wholly-owned subsidiary, Berthel SBIC, LLC.

(3) Tax services consist of preparation of the Trust's tax return.

                                       35

<PAGE>



                                     PART IV

Item 15. Exhibits and Financial Statement Schedules
         ------------------------------------------
(a) Documents filed as part of this report.

     1. Consolidated Financial Statements                               Page No.
                                                                        --------

         Consolidated Statements of Assets and Liabilities
         as of December 31, 2006 and 2005                                     20

         Consolidated Statements of Operations for the
         Years Ended December 31, 2006, 2005 and 2004                         21

         Consolidated Statements of Changes in Net Assets (Liabilities)
         for the Years Ended December 31, 2006, 2005 and 2004                 22

         Consolidated Statements of Cash Flows for the
         Years Ended December 31, 2006, 2005 and 2004                         23

         Notes to Consolidated Financial Statements                           24


     2.  Financial Statement Schedules
         Financial statement schedules are omitted as they are not required or
         are not applicable, or the required information is shown in the
         consolidated financial statements and the accompanying notes thereto.

     3.  Exhibits
         31.1     Certification of Chief Executive Officer
         31.2     Certification of Chief Financial Officer
         32.1     Certification of Chief Executive Officer
                   Pursuant to 18 U.S.C. Section 1350
         32.2     Certification of Chief Financial Officer
                   Pursuant to 18 U.S.C. Section 1350
         99.1     Fidelity Bond

(b) Exhibits
         Exhibits to the Form 10-K required by item 601 of Regulation S-K are
         attached or incorporated herein by reference as stated in the Index to
         Exhibits.

(c)      Financial Statements Excluded from Annual Report to Shareholders
         Pursuant to Rule 14a3(b) Not applicable.

                                       36

<PAGE>



                                   SIGNATURES

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange
Act of 1934, the Registrant has duly caused this report to be signed on its
behalf by the undersigned, thereunto duly authorized.

                                            BERTHEL GROWTH & INCOME TRUST I

                                            By:  /s/  Thomas J. Berthel
                                               --------------------------------
Date: March 12, 2007                                  THOMAS J. BERTHEL,
                                                      Chief Executive Officer
                                                      (principal executive
                                                      officer) of
                                                      Berthel Fisher & Company
                                                      Planning, Inc.,
                                                      Trust Advisor


                                            By:  /s/  Ronald O. Brendengen
                                               --------------------------------
Date: March 12, 2007                                  RONALD O. BRENDENGEN,
                                                      Chief Operating Officer,
                                                      Chief Financial Officer
                                                      and Treasurer
                                                      (principal  financial
                                                      officer) of
                                                      Berthel Fisher & Company
                                                      Planning, Inc.,
                                                      Trust Advisor


Pursuant to the requirements of the Securities Exchange Act of 1934, this report
has been signed below by the following persons on behalf of the registrant and
in the capacities and on the dates indicated.





                                            /s/  Thomas J. Berthel
                                            -----------------------------------
Date: March 12, 2007                             THOMAS J. BERTHEL,
                                                 Chairman and Director of
                                                 Berthel Fisher & Company,
                                                 Berthel Fisher & Company
                                                 Planning, Inc.,
                                                 Trust  Advisor

                                            /s/  Ronald O. Brendengen
                                            -----------------------------------
Date: March 12, 2007                             RONALD O. BRENDENGEN,
                                                 Director of Berthel Fisher &
                                                 Company Planning, Inc.,
                                                 Trust Advisor

                                            /s/  Leslie D. Smith
                                            -----------------------------------
Date: March 12, 2007                             LESLIE D. SMITH,
                                                 Director of Berthel Fisher &
                                                 Company Planning, Inc.,
                                                 Trust Advisor

                                            /s/  Henry  T. Madden
                                            -----------------------------------
Date: March 12, 2007                             HENRY T. MADDEN,
                                                 Independent Trustee of
                                                 Berthel Growth & Income Trust I

                                            /s/  Mary Quass
                                            -----------------------------------
Date: March 12, 2007                             MARY QUASS,
                                                 Independent Trustee of Berthel
                                                 Growth & Income Trust I

                                            /s/  Thomas J. Berthel
                                            -----------------------------------
Date: March 12, 2007                             THOMAS J. BERTHEL,
                                                 Chairman of the Board and Chief
                                                 Executive Officer of TJB
                                                 Capital Management, Inc.,
                                                 Trustee of Berthel Growth &
                                                 Income Trust I

                                            /s/  Daniel P. Wegmann
                                            -----------------------------------
Date: March 12, 2007                             DANIEL P. WEGMANN,
                                                 Controller of Berthel Fisher &
                                                 Company Planning, Inc.,
                                                 Trust Advisor

                                       37

<PAGE>


                                  EXHIBIT INDEX



     3.1  Certificate of Trust (1)
     3.2  Declaration of Trust (2)
     10.1 Management Agreement between the Trust and the Trust Advisor (3)
     10.2 Safekeeping Agreement between the Trust and Firstar Bank Cedar Rapids,
          N.A. (4)
     16.0 Letter re change in certifying accountant (5)
     31.1 Certification of Chief Executive Officer
     31.2 Certification of Chief Financial Officer
     32.1 Certification of Chief Executive Officer Pursuant to 18 U.S.C. Section
          1350
     32.2 Certification of Chief Financial Officer Pursuant to 18 U.S.C. Section
          1350
     99.1 Fidelity Bond



     (1)  Incorporated by reference to the Trust's Registration Statement on
          Form N-2, filed with the Commission on February 14, 1995 (File No.
          33-89605).

     (2)  Incorporated by reference to Pre-Effective Amendment No. 3 to the
          Trust's Registration Statement on Form N-2, filed with the Commission
          on June 21, 1995 (File No. 33-89605).

     (3)  Incorporated by reference to Pre-Effective Amendment No. 1 to the
          Trust's Registration Statement on Form N-2, filed with the Commission
          on May 9, 1995 (File No. 33-89605).

     (4)  Incorporated by reference to Pre-Effective Amendment No. 2 to the
          Trust's Registration Statement on Form N-2, filed with the Commission
          on June 12, 1995 (File No. 33-89605).

     (5)  Incorporated by reference to Form 8-K filed with the Commission on
          October 13, 1995 (File No. 33-89605).

                                       38

<PAGE>