<TABLE> <S> <C>

<ARTICLE> 6
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM ALLIED
CAPITAL CORPORATION II AND SUBSIDIARIES' CONSOLIDATED BALANCE SHEET AND
CONSOLIDATED STATEMENTS OF OPERATIONS, CHANGES IN NET ASSETS AND CASH FLOWS AND
IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS
INCORPORATED BY REFERENCE IN FORM 10-K.
</LEGEND>
<MULTIPLIER> 1,000
       
<S>                             <C>
<PERIOD-TYPE>                   YEAR
<FISCAL-YEAR-END>                          DEC-31-1996
<PERIOD-START>                             JAN-01-1996
<PERIOD-END>                               DEC-31-1996
<INVESTMENTS-AT-COST>                           87,011
<INVESTMENTS-AT-VALUE>                          86,266
<RECEIVABLES>                                        0
<ASSETS-OTHER>                                   2,117
<OTHER-ITEMS-ASSETS>                            18,525
<TOTAL-ASSETS>                                 106,908
<PAYABLE-FOR-SECURITIES>                             0
<SENIOR-LONG-TERM-DEBT>                              0
<OTHER-ITEMS-LIABILITIES>                        4,070
<TOTAL-LIABILITIES>                              4,070
<SENIOR-EQUITY>                                  7,550
<PAID-IN-CAPITAL-COMMON>                        94,135
<SHARES-COMMON-STOCK>                            7,550
<SHARES-COMMON-PRIOR>                            7,104
<ACCUMULATED-NII-CURRENT>                            0
<OVERDISTRIBUTION-NII>                               0
<ACCUMULATED-NET-GAINS>                          1,898
<OVERDISTRIBUTION-GAINS>                             0
<ACCUM-APPREC-OR-DEPREC>                         (745)
<NET-ASSETS>                                   102,838
<DIVIDEND-INCOME>                                    0
<INTEREST-INCOME>                               11,894
<OTHER-INCOME>                                     190
<EXPENSES-NET>                                   2,936
<NET-INVESTMENT-INCOME>                          9,148
<REALIZED-GAINS-CURRENT>                         7,427
<APPREC-INCREASE-CURRENT>                      (6,426)
<NET-CHANGE-FROM-OPS>                           10,149
<EQUALIZATION>                                       0
<DISTRIBUTIONS-OF-INCOME>                       10,955
<DISTRIBUTIONS-OF-GAINS>                         3,188
<DISTRIBUTIONS-OTHER>                                0
<NUMBER-OF-SHARES-SOLD>                            232
<NUMBER-OF-SHARES-REDEEMED>                          0
<SHARES-REINVESTED>                                214
<NET-CHANGE-IN-ASSETS>                             857
<ACCUMULATED-NII-PRIOR>                          (534)
<ACCUMULATED-GAINS-PRIOR>                            0
<OVERDISTRIB-NII-PRIOR>                              0
<OVERDIST-NET-GAINS-PRIOR>                           0
<GROSS-ADVISORY-FEES>                            2,438
<INTEREST-EXPENSE>                                   0
<GROSS-EXPENSE>                                  2,936
<AVERAGE-NET-ASSETS>                           102,409
<PER-SHARE-NAV-BEGIN>                            14.36
<PER-SHARE-NII>                                   1.24
<PER-SHARE-GAIN-APPREC>                           0.14
<PER-SHARE-DIVIDEND>                              1.49
<PER-SHARE-DISTRIBUTIONS>                         0.43
<RETURNS-OF-CAPITAL>                                 0
<PER-SHARE-NAV-END>                              13.62
<EXPENSE-RATIO>                                      0
<AVG-DEBT-OUTSTANDING>                               0
<AVG-DEBT-PER-SHARE>                                 0
        

</TABLE>