<TABLE> <S> <C>

<ARTICLE> 6
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM ALLIED
CAPITAL CORPORATION AND SUBSIDIARIES' CONSOLIDATED BALANCE SHEET AND
CONSOLIDATED STATEMENTS OF OPERATIONS, CHANGES IN NET ASSETS AND CASH FLOWS AND
IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS
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>                          112,538
<INVESTMENTS-AT-VALUE>                         116,608
<RECEIVABLES>                                        0
<ASSETS-OTHER>                                   4,228
<OTHER-ITEMS-ASSETS>                            44,915
<TOTAL-ASSETS>                                 165,751
<PAYABLE-FOR-SECURITIES>                             0
<SENIOR-LONG-TERM-DEBT>                         90,600
<OTHER-ITEMS-LIABILITIES>                        5,831
<TOTAL-LIABILITIES>                             96,431
<SENIOR-EQUITY>                                 13,299
<PAID-IN-CAPITAL-COMMON>                        50,681
<SHARES-COMMON-STOCK>                            7,299
<SHARES-COMMON-PRIOR>                            6,198
<ACCUMULATED-NII-CURRENT>                          270
<OVERDISTRIBUTION-NII>                               0
<ACCUMULATED-NET-GAINS>                              0
<OVERDISTRIBUTION-GAINS>                             0
<ACCUM-APPREC-OR-DEPREC>                         4,070
<NET-ASSETS>                                    68,320
<DIVIDEND-INCOME>                                1,618
<INTEREST-INCOME>                               13,996
<OTHER-INCOME>                                     251
<EXPENSES-NET>                                  11,470
<NET-INVESTMENT-INCOME>                          4,395
<REALIZED-GAINS-CURRENT>                        10,497
<APPREC-INCREASE-CURRENT>                      (3,499)
<NET-CHANGE-FROM-OPS>                           11,393
<EQUALIZATION>                                       0
<DISTRIBUTIONS-OF-INCOME>                        1,627
<DISTRIBUTIONS-OF-GAINS>                         9,319
<DISTRIBUTIONS-OTHER>                                0
<NUMBER-OF-SHARES-SOLD>                          1,008
<NUMBER-OF-SHARES-REDEEMED>                          0
<SHARES-REINVESTED>                                 93
<NET-CHANGE-IN-ASSETS>                          11,139
<ACCUMULATED-NII-PRIOR>                        (3,676)
<ACCUMULATED-GAINS-PRIOR>                            0
<OVERDISTRIB-NII-PRIOR>                            355
<OVERDIST-NET-GAINS-PRIOR>                           0
<GROSS-ADVISORY-FEES>                            2,933
<INTEREST-EXPENSE>                               7,566
<GROSS-EXPENSE>                                 11,470
<AVERAGE-NET-ASSETS>                            62,750
<PER-SHARE-NAV-BEGIN>                             8.26
<PER-SHARE-NII>                                   0.63
<PER-SHARE-GAIN-APPREC>                           1.01
<PER-SHARE-DIVIDEND>                              0.20
<PER-SHARE-DISTRIBUTIONS>                         1.31
<RETURNS-OF-CAPITAL>                                 0
<PER-SHARE-NAV-END>                               8.54
<EXPENSE-RATIO>                                      0
<AVG-DEBT-OUTSTANDING>                          86,700
<AVG-DEBT-PER-SHARE>                             11.88
        


</TABLE>