|   |   | OMB                APPROVAL                            |
|--------|--------|--------------------------------------------------------|
|   |   | OMB                Number:    3235-0070 |
|   |   | Expires:                January 31, 2008               |
|   |   | Estimated                average burden                |
|   |   | hours                per response...192.00         |

**UNITED      STATES**

**SECURITIES      AND EXCHANGE COMMISSION**

**Washington,      D.C. 20549**

----

**FORM      10-Q**

| **x ** | **QUARTERLY                REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE                ACT OF                1934** |
|-------------|------------------------------------------------------------------------------------------------------------------------------------------|

| **o** | **TRANSITION                REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE                ACT OF                1934** |
|-------|-------------------------------------------------------------------------------------------------------------------------------------------|

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**BLACKHAWK      CAPITAL GROUP BDC, INC.**

| Delaware                                                                                    |   | 20-1031329                                                         |
|---------------------------------------------------------------------------------------------|--------|--------------------------------------------------------------------|
| (State                or other jurisdiction ofincorporation                or organization) |   | (I.R.S.                Employer Identification                No.) |

| **14                Wall Street, 11th Floor, New York, NY** | **10005**                 |
|-------------------------------------------------------------|---------------------------|
| (Address                of principal executive offices)     | (Zip                Code) |

**(212)      566-8300**

----

----

| Class                                           |   | Outstanding                on November 12, 2007 |
|-------------------------------------------------|--------|-------------------------------------------------|
| Common                Stock, $0.00001 par value |   | 31,169,372                                      |

| SEC                1296 (12-05) | **Potential                persons who are to respond to the collection of information contained                in                this form are not required to respond unless the form displays a                currently                valid OMB control number.** |
|---------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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**BLACKHAWK      CAPITAL GROUP BDC, INC.**

**INDEX**

|                              |                                                                                                                                                                                                                | **Page** |
|-----------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|----------|
| **PART              I.**     | **FINANCIAL                INFORMATION**                                                                                                                                                                       |     |
|                              |                                                                                                                                                                                                                |     |
|  Item                1.      | Financial                Statements.                                                                                                                                                                                |     |
|                              |                                                                                                                                                                                                                |     |
|                              | Condensed                Statements of Assets and Liabilities as of September 30, 2007 (unaudited)                and December 31, 2006                                                                             | 1        |
|                              |                                                                                                                                                                                                                |     |
|                              | Condensed                Statement of Investments as of September 30, 2007                (unaudited)                                                                                                               | 2        |
|                              |                                                                                                                                                                                                                |     |
|                              | Condensed                Statements of Operations for the three and nine months ended September                30,                2007 (unaudited) and September 30, 2006 (unaudited)                               | 3        |
|                              |                                                                                                                                                                                                                |     |
|                              | Condensed                Statements of Changes in Net Assets (Liabilities) for the nine months                ended September 30, 2007 (unaudited) and year ended December 31,                2006                  | 4        |
|                              |                                                                                                                                                                                                                |     |
|                              | Condensed                Statement of Stockholders' Equity (Capital Deficit) for the nine                months                ended September 30, 2007 (unaudited) and year ended December 31,                2006 | 5        |
|                              |                                                                                                                                                                                                                |     |
|                              | Condensed                Statements of Cash Flows for the nine months ended September 30,                2007                (unaudited) and September 30, 2006 (unaudited)                                         | 6        |
|                              |                                                                                                                                                                                                                |     |
|                              | Notes                to Condensed Financial Statements                                                                                                                                                              | 7        |
|                              |                                                                                                                                                                                                                |     |
|  Item                2.      | Management’s                Discussion and Analysis of Financial Condition and Results of Operations.                                                                                                         | 10       |
|                              |                                                                                                                                                                                                                |     |
|  Item                3.      | Quantitative                and Qualitative Disclosures about Market Risk.                                                                                                                                          | 14       |
|                              |                                                                                                                                                                                                                |     |
|  Item                4.      | Controls                and Procedures.                                                                                                                                                                             | 14       |
|                              |                                                                                                                                                                                                                |     |
|                              |                                                                                                                                                                                                                |
| ** PART                II.** | **OTHER                INFORMATION**                                                                                                                                                                                | 15       |
|                              |                                                                                                                                                                                                                |     |
|  Item                1.      | Legal                Proceedings.                                                                                                                                                                                   | 15       |
|                              |                                                                                                                                                                                                                |     |
| Item                1A.           | Risk                Factors                                                                                                                                                                                         | 15       |
|                              |                                                                                                                                                                                                                |     |
|  Item                2.      | Unregistered                Sales of Equity Securities and Use of Proceeds.                                                                                                                                         | 15       |
|                              |                                                                                                                                                                                                                |     |
| Item                3.       | Defaults                upon Senior Securities.                                                                                                                                                                     | 16       |
|                              |                                                                                                                                                                                                                |     |
|  Item                4.      | Submission                of Matters to a Vote of Security Holders.                                                                                                                                                 | 16       |
|                              |                                                                                                                                                                                                                |     |
|  Item                5.      | Other                Information.                                                                                                                                                                                   | 16       |
|                              |                                                                                                                                                                                                                |     |
| Item                6.            | Exhibits.                                                                                                                                                                                                           | 16       |

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**BLACKHAWK      CAPITAL GROUP BDC INC.**

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|                                                                                                                                                                                                                       |   | SEPTEMBER 30, 2007 |        | DECEMBER 31, 2006 |   |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|------------------------------|-------------|-----------------------------|--------|
|                                                                                                                                                                                                                       |   |  (Unaudited)            |        |                        |   |
| **ASSETS:**                                                                                                                                                                                                                |   |                         |        |                        |   |
| Investments,                at fair value (cost $161,917)                                                                                                                                                                  |   | $                            | 168,000     |                        | $      | - |   |
| Cash                and cash equivalents                                                                                                                                                                                   |   |                         | 111,402     |                        |   | 637 |   |
| Prepaid                insurance                                                                                                                                                                                           |   |                         | 13,527      |                        |   | 9,000 |   |
|                                                                                                                                                                                                                       |   |                         |        |                        |   |   |   |
| **TOTAL                ASSETS**                                                                                                                                                                                            |   | **$**                        | **292,929** |                        | **$**  | **9,637** |   |
|                                                                                                                                                                                                                       |   |                         |        |                        |   |   |   |
| **LIABILITIES**                                                                                                                                                                                                            |   |                         |        |                        |   |   |   |
| Convertible                loan payable, including interest of $4,125                                                                                                                                                      |   | $                            | -           |                        | $      | 104,125 |   |
| Due                to affiliated company                                                                                                                                                                                   |   |                         | -           |                        |   | 8,000 |   |
| Accrued                expenses                                                                                                                                                                                            |   |                         | 246,179     |                        |   | 193,936 |   |
| **TOTAL                LIABILITIES**                                                                                                                                                                                       |   |                         | **246,179** |                        |   | **306,061** |   |
|                                                                                                                                                                                                                       |   |                         |        |                        |   |   |   |
| **NET                ASSETS (LIABILITIES)**                                                                                                                                                                                |   |                         |        |                        |   |   |   |
|  Common                  stock, par value $.00001 per share 1,000,000,000 shares authorized,                  31,169,372 and 30,511,481 shares issued and outstanding in                  2007 and 2006, respectively |   |                         | 312         |                        |   | 305 |   |
| Additional                paid-in capital                                                                                                                                                                                  |   |                         | 805,853     |                        |   | 147,968 |   |
| Accumulated                net investment loss                                                                                                                                                                             |   |                         | (766,385    | )                           |   | (444,697 | ) |
| Net                unrealized appreciation on investments                                                                                                                                                                  |   |                         | 6,970       |                        |   | - |   |
| **TOTAL                NET ASSETS (LIABILITIES)**                                                                                                                                                                          |   |                         | **46,750**  |                        |   | **(296,424** | **)** |
|                                                                                                                                                                                                                       |   |                         |        |                        |   |   |   |
| **TOTAL                LIABILITIES AND NET ASSETS (LIABILITIES)**                                                                                                                                                          |   | **$**                        | **292,929** |                        | **$**  | **9,637** |   |
|                                                                                                                                                                                                                       |   |                         |        |                        |   |   |   |
| **NET                ASSETS (LIABILITIES) PER COMMON SHARE**                                                                                                                                                               |   | **$**                        | **.00150**  |                        |   | **($.00972** | **)** |

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**BLACKHAWK      CAPITAL GROUP BDC INC.**

----

| COMPANY                                                                       |   | INVESTMENT |                            | INITIALACQUISITIONDATE |   | COST   |   | FAIRVALUE |    | %                OF TOTALASSETS |   | %                OF NETASSETS |   |
|-------------------------------------------------------------------------------|--------|------------|---------------------------------|------------------------|--------|--------|--------|-----------|---------|---------------------------------|--------|-------------------------------|--------|
|                                                                          |   |       |                            |                   |   |   |   |      |    |                            |   |                          |   |
| General                Electric Capital Company 0%                Due 2/29/08 |   |       | Commercial                Paper |                   |   | 6/7/07 |   | $         | 161,917 |                            | $      | 168,000                       |   |   | 57.3 | % |   | 359.4 | % |

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**BLACKHAWK      CAPITAL GROUP BDC INC.**

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|                                                                                         |   | THREE MONTHS ENDED SEPTEMBER 30, |           | NINE MONTHS ENDED SEPTEMBER 30, |   |
|----------------------------------------------------------------------------------------------|--------|------------------------------------------------------|----------------|-----------------------------------------------------|--------|
|                                                                                         |   |  2007                                           |           |  2006                                          |   |  2007 |   |  2006 |   |
|                                                                                         |   |                                                 |           |                                                |   |   |   |   |   |
| **INVESTMENT                INCOME:**                                                        |   |                                                 |           |                                                |   |   |   |   |   |
| Interest                income                                                               |   | $                                                    | 1,625          |                                                | $      | 54 |   | $ | 1,691 |   | $ | 457 |   |
| **TOTAL                INVESTMENT INCOME**                                                   |   |                                                 | **1,625**      |                                                |   | **54** |   |   | **1,691** |   |   | **457** |   |
|                                                                                         |   |                                                 |           |                                                |   |   |   |   |   |   |   |   |   |
| **EXPENSES:**                                                                                |   |                                                 |           |                                                |   |   |   |   |   |   |   |   |   |
| Professional                fees                                                             |   |                                                 | 102,206        |                                                |   | 66,594 |   |   | 290,168 |   |   | 237,049 |   |
| Consulting                fees                                                               |   |                                                 | 1,503          |                                                |   | 2,325 |   |   | 1,905 |   |   | 21,502 |   |
| Filing                fees                                                                   |   |                                                 | 3,044          |                                                |   | 1,764 |   |   | 7,741 |   |   | 8,765 |   |
| Insurance                                                                                    |   |                                                 | 5,126          |                                                |   | 10,485 |   |   | 16,071 |   |   | 22,939 |   |
| Interest                expense                                                              |   |                                                 | -              |                                                |   | - |   |   | 3,266 |   |   | - |   |
| Other                                                                                        |   |                                                 | 100            |                                                |   | 101 |   |   | 4,228 |   |   | 101 |   |
| **TOTAL                EXPENSES**                                                            |   |                                                 | **111,979**    |                                                |   | **81,269** |   |   | **323,379** |   |   | **290,356** |   |
|                                                                                         |   |                                                 |           |                                                |   |   |   |   |   |   |   |   |   |
| **NET                INVESTMENT (LOSS)**                                                     |   |                                                 | **(110,354**   | **)**                                               |   | **(81,215** | **)** |   | **(321,688** | **)** |   | **(289,899** | **)** |
|                                                                                         |   |                                                 |           |                                                |   |   |   |   |   |   |   |   |   |
| **UNREALIZED                GAIN ON INVESTMENTS**                                            |   |                                                 | **41**         |                                                |   | **-** |   |   | **6,970** |   |   | **-** |   |
|                                                                                         |   |                                                 |           |                                                |   |   |   |   |   |   |   |   |   |
| **NET                  DECREASE IN ASSETS RESULTING FROM                  OPERATIONS**       |   | **$**                                                | **(110,313**   | **)**                                               | **$**  | **(81,215** | **)** | **$** | **(314,718** | **)** | **$** | **(289,899** | **)** |
|                                                                                         |   |                                                 |           |                                                |   |   |   |   |   |   |   |   |   |
| ** ****LOSS                  PER COMMON SHARE, BASIC AND DILUTED**                      |   | **$**                                                | **(0.00354**   | **)**                                               | **$**  | **(0.00266** | **)** | **$** | **(0.01022** | **)** | **$** | **(0.01055** | **)** |
|                                                                                         |   |                                                 |           |                                                |   |   |   |   |   |   |   |   |   |
| **WEIGHTED                  AVERAGE SHARES OUTSTANDING, BASIC AND                  DILUTED** |   |                                                 | **31,169,372** |                                                |   | **30,511,481** |   |   | **30,804,934** |   |   | **27,485,229** |   |

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**BLACKHAWK      CAPITAL GROUP BDC INC.**

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|                                                                                                   |   | NINE MONTHSENDEDSEPTEMBER 30, 2007 |         | YEAR ENDEDDECEMBER 31, 2006 |   |
|--------------------------------------------------------------------------------------------------------|--------|---------------------------------------------------|--------------|--------------------------------------------|--------|
|                                                                                                   |   |  (Unaudited)                                 |         |                                       |   |
| **DECREASE                IN NET ASSETS FROM OPERATIONS**                                              |   |                                              |         |                                       |   |
| Net                investment loss                                                                     |   | $                                                 | (321,688     | )                                          | $      | (387,247 | ) |
|                                                                                                   |   |                                              |         |                                       |   |   |   |
| Unrealized                gain on investments                                                          |   |                                              | 6,970        |                                       |   | - |   |
|                                                                                                   |   |                                              |         |                                       |   |   |   |
| **NET                  DECREASE IN NET ASSETS**RESULTING FROM                  OPERATIONS              |   |                                              | **(314,718** | **)**                                      |   | **(387,247** | **)** |
|                                                                                                   |   |                                              |         |                                       |   |   |   |
|                                                                                                   |   |                                              |         |                                       |   |   |   |
| **CAPITAL                STOCK TRANSACTIONS:**                                                         |   |                                              |         |                                       |   |   |   |
| Proceeds                from common stock sold                                                         |   |                                              | 525,001      |                                       |   | - |   |
| Conversion                  of amounts owed to affiliate into common                  stock            |   |                                              | 132,891      |                                       |   | 68,847 |   |
|                                                                                                   |   |                                              |         |                                       |   |   |   |
|                                                                                                   |   |                                              |         |                                       |   |   |   |
| ** NET                  INCREASE IN NET ASSETS FROM CAPITAL STOCK                  TRANSACTIONS** |   |                                              | **657,892**  |                                       |   | **68,847** |   |
|                                                                                                   |   |                                              |         |                                       |   |   |   |
| **TOTAL                INCREASE (DECREASE) IN NET ASSETS**                                             |   |                                              | **343,174**  |                                       |   | **(318,400** | **)** |
|                                                                                                   |   |                                              |         |                                       |   |   |   |
| **NET                ASSETS (LIABILITIES) – BEGINNING OF PERIOD**                           |   |                                              | **(296,424** | **)**                                      |   | **21,976** |   |
|                                                                                                   |   |                                              |         |                                       |   |   |   |
| **NET                ASSETS (LIABILITIES) – END OF PERIOD**                                 |   | **$**                                             | **46,750**   |                                       | **$**  | **(296,424** | **)** |

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**BLACKHAWK      CAPITAL GROUP BDC INC.**

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|                                                                                                                 |   |   |         | COMMON STOCK |   | ADDITIONALPAID-IN |   | NET UNREALIZEDAPPRECIATIONON |    | ACCUMULATEDNETINVESTMENT |   |
|----------------------------------------------------------------------------------------------------------------------|--------|--------|--------------|-------------------|--------|-------------------|--------|-----------------------------------|---------|--------------------------|--------|
|                                                                                                                 |   | TOTAL  |         |  SHARES      |   | AMOUNT            |   | CAPITAL                           |    | INVESTMENTS              |   | LOSS |   |
|                                                                                                                 |   |   |         |              |   |              |   |                              |    |                     |   |   |   |
| **Balance –****December                31, 2005**                                                         |   | **$**  | **21,976**   |              |   | **23,626,781**    |   | **$**                             | **236** |                     | **$**  | **79,190** |   | **$** | **-** |   | **$** | **(57,450** | **)** |
|                                                                                                                 |   |   |         |              |   |              |   |                              |    |                     |   |   |   |   |   |   |   |   |   |
| Net                decrease in assets resulting from operations                                                      |   |   | (387,247     | )                 |   | -                 |   |                              | -       |                     |   | - |   |   | - |   |   | (387,247 | ) |
|                                                                                                                 |   |   |         |              |   |              |   |                              |    |                     |   |   |   |   |   |   |   |   |   |
| Conversion                of a portion of                amount owed to affiliate (at                $.01 per share) |   |   | 68,847       |              |   | 6,884,700         |   |                              | 69      |                     |   | 68,778 |   |   | - |   |   | - |   |
|                                                                                                                 |   |   |         |              |   |              |   |                              |    |                     |   |   |   |   |   |   |   |   |   |
| **Balance –****December                31, 2006**                                                         |   |   | **(296,424** | **)**             |   | **30,511,481**    |   |                              | **305** |                     |   | **147,968** |   |   | **-** |   |   | **(444,697** | **)** |
|                                                                                                                 |   |   |         |              |   |              |   |                              |    |                     |   |   |   |   |   |   |   |   |   |
| Net                decrease in assets resulting from operations                                                      |   |   | (314,718     | )                 |   | -                 |   |                              | -       |                     |   | - |   |   | 6,970 |   |   | (321,688 | ) |
|                                                                                                                 |   |   |         |              |   |              |   |                              |    |                     |   |   |   |   |   |   |   |   |   |
| Conversion                of amount due to affiliate (at $1.00 per share)                                            |   |   | 132,891      |              |   | 132,891           |   |                              | 1       |                     |   | 132,890 |   |   | - |   |   | - |   |
|                                                                                                                 |   |   |         |              |   |              |   |                              |    |                     |   |   |   |   |   |   |   |   |   |
| Sale                of stock pursuant to Offering Plan (at $1.00 per share)                                          |   |   | 525,001      |              |   | 525,000           |   |                              | 6       |                     |   | 524,995 |   |   | - |   |   | - |   |
|                                                                                                                 |   |   |         |              |   |              |   |                              |    |                     |   |   |   |   |   |   |   |   |   |
| **Balance–                September 30, 2007**                                                                 |   | **$**  | **46,750**   |              |   | **31,169,372**    |   | **$**                             | **312** |                     | **$**  | **805,853** |   | **$** | **6,970** |   | **$** | **(766,385** | **)** |
| (Unaudited)                                                                                                          |   |   |         |              |   |              |   |                              |    |                     |   |   |   |   |   |   |   |   |   |

----

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**BLACKHAWK      CAPITAL GROUP BDC INC.**

----

|                                                                                                   |   |  NINE MONTHS ENDEDSEPTEMBER 30, |         |
|--------------------------------------------------------------------------------------------------------|--------|-----------------------------------------------------|--------------|
|                                                                                                   |   | 2007                                                |         |  2006 |   |
|                                                                                                   |   |                                                |         |   |   |
| **CASH                FLOWS FROM OPERATING AND INVESTING ACTIVITIES:**                                 |   |                                                |         |   |   |
| Net                investment loss and decrease in net assets resulting from                operations |   | $                                                   | (314,718     | ) | $ | (289,899 | ) |
| ** **Unrealized                gain on investments                                                |   |                                                | (6,970       | ) |   | - |   |
| Purchase                of investments                                                                 |   |                                                | (311,060     | ) |   | - |   |
| Proceeds                from sale and redemption of investments                                        |   |                                                | 150,030      |   |   | - |   |
| Increase                in prepaid expenses                                                            |   |                                                | (4,527       | ) |   | (4,815 | ) |
| Increase                in accrued expenses and accrued interest                                       |   |                                                | 55,509       |   |   | 96,683 |   |
|                                                                                                   |   |                                                |         |   |   |   |   |
| **NET                CASH USED IN OPERATING AND INVESTING ACTIVITIES**                                 |   |                                                | **(431,736** | **)** |   | **(198,031** | **)** |
|                                                                                                   |   |                                                |         |   |   |   |   |
| **CASH                FLOWS FROM FINANCING ACTIVITIES:**                                               |   |                                                |         |   |   |   |   |
| Proceeds                from issuance of common stock                                                  |   |                                                | 525,001      |   |   | - |   |
| Loan                from affiliated company                                                            |   |                                                | 17,500       |   |   | 125,005 |   |
| Due                  to former stockholder in connection with common stock                  rescission |   |                                                | -            |   |   | (45 | ) |
|                                                                                                   |   |                                                |         |   |   |   |   |
| **NET                CASH PROVIDED BY FINANCING ACTIVITIES**                                           |   |                                                | **542,501**  |   |   | **124,960** |   |
|                                                                                                   |   |                                                |         |   |   |   |   |
|                                                                                                   |   |                                                |         |   |   |   |   |
| **NET                INCREASE (DECREASE) IN CASH**                                                     |   |                                                | **110,765**  |   |   | **(73,071** | **)** |
|                                                                                                   |   |                                                |         |   |   |   |   |
| **CASH                AND CASH EQUIVALENTS – BEGINNING OF PERIOD**                          |   |                                                | **637**      |   |   | **77,877** |   |
|                                                                                                   |   |                                                |         |   |   |   |   |
| **CASH                AND CASH EQUIVALENTS – END OF PERIOD**                                |   | **$**                                               | **111,402**  |   | **$** | **4,806** |   |
|                                                                                                   |   |                                                |         |   |   |   |   |
| Non-cash                financing activities:                                                          |   |                                                |         |   |   |   |   |
| Conversion                of amount due to affiliated company into common stock                        |   | $                                                   | 132,891      |   | $ | 68,847 |   |

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**BLACKHAWK      CAPITAL GROUP BDC INC.**

----

| **1** | **SIGNIFICANT                ACCOUNTING POLICIES** |
|-------|----------------------------------------------------|

***Business      description***

***Basis      of presentation***

***Revenue      recognition***

----

***Cash      and cash equivalents***

***Investments***

***New      accounting pronouncement***

***Investment      Advisory Agreement***

| **2** | **INCOME                TAXES** |
|-------|---------------------------------|

| **3** | **RELATED                PARTY TRANSACTIONS** |
|-------|-----------------------------------------------|

----

| **4** | **STOCKHOLDERS'                EQUITY** |
|-------|-----------------------------------------|

| **5** | **FINANCIAL                HIGHLIGHTS** |
|-------|-----------------------------------------|

|                                                                     |   | NINE MONTHS ENDEDSEPTEMBER 30, 2007 |       | NINE MONTHS ENDEDSEPTEMBER 30, 2006 |   | YEAR ENDED DECEMBER 31, 2006 |   |
|--------------------------------------------------------------------------|--------|---------------------------------------------------------|------------|---------------------------------------------------------|--------|--------------------------------------------------|--------|
| **Per                Share Data:**                                       |   |                                                    |       |                                                    |   |                                             |   |
| Net                (liability) asset value - beginning of period         |   | $                                                       | (0.00972   | )                                                       | $      | 0.00093                                          |   | $ | 0.00093 |   |
|                                                                     |   |                                                    |       |                                                    |   |                                             |   |   |   |   |
| Net                investment loss *                                     |   |                                                    | (0.01044   | )                                                       |   | (0.01055                                         | )      |   | (0.01371 | ) |
| Issuance                of common stock                                  |   |                                                    | 1.00000    |                                                    |   | 0.01000                                          |   |   | 0.01000 |   |
| Net                realized and unrealized gain (loss)**                 |   |                                                    | (0.97834   | )                                                       |   | (0.00690                                         | )      |   | (0.00694 | ) |
| Net                asset (liability) value - end of period               |   |                                                    | 0.00150    |                                                    |   | (0.00652                                         | )      |   | (0.00972 | ) |
|                                                                     |   |                                                    |       |                                                    |   |                                             |   |   |   |   |
| **Total                return based on net asset (liability) value ***** |   |                                                    | (105       | %)                                                      |   | (1,134                                           | %)     |   | (1,474 | %) |
|                                                                     |   |                                                    |       |                                                    |   |                                             |   |   |   |   |
| Common                shares outstanding - end of period****             |   |                                                    | 31,169,372 |                                                    |   | 30,511,481                                       |   |   | 30,511,481 |   |
| **Ratio/Supplemental                Data**:                              |   |                                                    |       |                                                    |   |                                             |   |   |   |   |
| Net                assets (liabilities) - end of period                  |   | $                                                       | 46,750     |                                                    | $      | (199,076                                         | )      | $ | (296,424 | ) |
|                                                                     |   |                                                    |       |                                                    |   |                                             |   |   |   |   |
| Ratio                of net investment loss to average net assets*****   |   |                                                    | (863       | %)                                                      |   | (7,036                                           | %)     |   | (3,524 | %) |
|                                                                     |   |                                                    |       |                                                    |   |                                             |   |   |   |   |
| Ratio                of operating expenses to average net assets*****    |   |                                                    | 867        | %                                                       |   | 7,047                                            | %      |   | 3,528 | % |

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|  | * | Calculated                based on average shares outstanding during                period. |
|--|---|---------------------------------------------------------------------------------------------|

|   | ** | Net                realized and unrealized gain (loss) represents the dilutive effect                of                share issuance.This                caption used per the AICPA Audit and Accounting Guide for investment                Companies Section 7.74 (c). |
|--------|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | *** | Total                returns for periods of less than one year are not                annualized. |
|--|-----|---------------------------------------------------------------------------------------------------|

|  | **** | Common                shares outstanding are reduced by rescinded                shares. |
|--|------|------------------------------------------------------------------------------------------|

|   |   | ***** | Annualized                for periods less than one year. |
|--------|--------|-------|-----------------------------------------------------------|

**Item      2. Management’s Discussion and Analysis of Financial Condition and Results of      Operations.**

*Overview*

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*Accounting      Policies*

*Basis      of Presentation*

*Use      of Estimates in the Preparation of Financial Statements*

*Income      Taxes*

*Portfolio      and Investment Activity*

*Investment      Strategy*

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*Results      of Operations*

*Sales      Revenues*

*General      and Administrative Expenses*

*Other      Income (Expenses)*

*Liquidity      and Capital Resources*

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**Item      3. Quantitative and Qualitative Disclosures about Market      Risk.**

**Item      4. Controls and Procedures.**

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**PART      II. OTHER INFORMATION**

**Item      1. Legal Proceedings. **

**Item      1A. Risk Factors**

**Item      2. Unregistered Sales of Equity Securities and Use of      Proceeds.**

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**Item      3. Defaults upon Senior Securities.**

**Item      4. Submission of Matters to a Vote of Security Holders.**

**Item      5. Other Information.**

**Item      6. Exhibits.**

| 31.1   |   | Certification                by Chief Executive Officer Pursuant to Section 302 of the Sarbanes                Oxley                Act of 2002 |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                                            |
| 31.2   |   | Certification                by Chief Financial Officer Pursuant to Section 302 of the Sarbanes                Oxley                Act of 2002 |
|   |   |                                                                                                                                            |
| 32.1   |   | Certification                by Chief Executive Officer Pursuant to Section 906 of the Sarbanes                Oxley                Act of 2002 |
|   |   |                                                                                                                                            |
| 32.2   |   | Certification                by Chief Financial Officer Pursuant to Section 906 of the Sarbanes                Oxley                Act of 2002 |
|   |   |                                                                                                                                            |

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|                                   | **BLACKHAWK                CAPITAL GROUP BDC, INC.** |
|----------------------------------------|------------------------------------------------------|
|                                   |                                                 |   |
| Date:                November 12, 2007 |  By:                                            | /s/                Craig A. Zabala |
|                                   |                                                 | Craig A. Zabala, Chief Executive Officer |
|                                   |                                                 |   |
| Date:                November 12, 2007 |  By:                                            | /s/                Craig A. Zabala |
|                                   |                                                 | Craig A. Zabala, Acting Chief Financial Officer |

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