<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-31-1995
<PERIOD-START>                             JAN-01-1995
<PERIOD-END>                               DEC-31-1995
<INVESTMENTS-AT-COST>                          115,615
<INVESTMENTS-AT-VALUE>                         123,184
<RECEIVABLES>                                        0
<ASSETS-OTHER>                                   2,341
<OTHER-ITEMS-ASSETS>                            22,743
<TOTAL-ASSETS>                                 148,268
<PAYABLE-FOR-SECURITIES>                             0
<SENIOR-LONG-TERM-DEBT>                         81,300
<OTHER-ITEMS-LIABILITIES>                        9,787
<TOTAL-LIABILITIES>                             91,087
<SENIOR-EQUITY>                                 12,198
<PAID-IN-CAPITAL-COMMON>                        41,090
<SHARES-COMMON-STOCK>                            6,198
<SHARES-COMMON-PRIOR>                            6,153
<ACCUMULATED-NII-CURRENT>                            0
<OVERDISTRIBUTION-NII>                         (3,676)
<ACCUMULATED-NET-GAINS>                              0
<OVERDISTRIBUTION-GAINS>                             0
<ACCUM-APPREC-OR-DEPREC>                         7,569
<NET-ASSETS>                                    57,181
<DIVIDEND-INCOME>                                1,556
<INTEREST-INCOME>                               11,957
<OTHER-INCOME>                                     613
<EXPENSES-NET>                                  10,794
<NET-INVESTMENT-INCOME>                          3,332
<REALIZED-GAINS-CURRENT>                         5,526
<APPREC-INCREASE-CURRENT>                        6,459
<NET-CHANGE-FROM-OPS>                           15,317
<EQUALIZATION>                                       0
<DISTRIBUTIONS-OF-INCOME>                        2,685
<DISTRIBUTIONS-OF-GAINS>                         6,429
<DISTRIBUTIONS-OTHER>                                0
<NUMBER-OF-SHARES-SOLD>                              0
<NUMBER-OF-SHARES-REDEEMED>                          0
<SHARES-REINVESTED>                             45,435
<NET-CHANGE-IN-ASSETS>                           7,194
<ACCUMULATED-NII-PRIOR>                        (3,420)
<ACCUMULATED-GAINS-PRIOR>                            0
<OVERDISTRIB-NII-PRIOR>                          1,216
<OVERDIST-NET-GAINS-PRIOR>                       1,035
<GROSS-ADVISORY-FEES>                            2,799
<INTEREST-EXPENSE>                               6,735
<GROSS-EXPENSE>                                 10,794
<AVERAGE-NET-ASSETS>                            53,584
<PER-SHARE-NAV-BEGIN>                             7.15
<PER-SHARE-NII>                                   0.54
<PER-SHARE-GAIN-APPREC>                           1.94
<PER-SHARE-DIVIDEND>                              0.40
<PER-SHARE-DISTRIBUTIONS>                         1.04
<RETURNS-OF-CAPITAL>                                 0
<PER-SHARE-NAV-END>                               8.26
<EXPENSE-RATIO>                                      0
<AVG-DEBT-OUTSTANDING>                          79,903
<AVG-DEBT-PER-SHARE>                             12.89
        

</TABLE>