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                UNITED STATES SECURITIES AND EXCHANGE COMMISSION
                              WASHINGTON D.C. 20549

                                    FORM 10-Q

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

                  For the quarterly period ended March 31, 2003

                         Commission file number 1-11011

                              THE FINOVA GROUP INC.
             (Exact name of registrant as specified in its charter)

              Delaware                                       86-0695381
  (State or other jurisdiction of                         (I.R.S. employer
   incorporation or organization)                        identification no.)

     4800 North Scottsdale Road
           Scottsdale, AZ                                    85251-7623
(Address of principal executive offices)                     (Zip code)

        Registrant's telephone number, including area code: 480-636-4800

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  filing
requirements for the past 90 days.

                                 Yes [X] No [ ]

Indicate  by check mark  whether  the  registrant  is an  accelerated  filer (as
defined in Rule 12b-2 of the Exchange Act).

                                 Yes [ ] No [X]

          APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY PROCEEDINGS
                        DURING THE PRECEDING FIVE YEARS:

Indicate  by check mark  whether  the  registrant  has filed all  documents  and
reports  required  to be filed by  Sections  12,  13 or 15(d) of the  Securities
Exchange Act of 1934 subsequent to the  distribution of securities  under a plan
confirmed by the court.

                                 Yes [X] No [ ]

                      APPLICABLE ONLY TO CORPORATE ISSUERS:

As of May 9, 2003,  approximately  122,041,000 shares of Common Stock ($0.01 par
value) were outstanding.

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<PAGE>
                              THE FINOVA GROUP INC.

                                TABLE OF CONTENTS

                                                                        PAGE NO.
                                                                        --------
                          PART I FINANCIAL INFORMATION

Item 1. Financial Statements                                                   1
          Condensed Consolidated Balance Sheets                                1
          Condensed Statements of Consolidated Operations                      2
          Condensed Statements of Consolidated Cash Flows                      3
          Condensed Statements of Consolidated Stockholders' Equity            4
          Notes to Interim Condensed Consolidated Financial Statements         5

Item 2. Management's Discussion and Analysis of Financial Condition and
        Results of Operations                                                 10
        Special Note Regarding Forward-Looking Statements                     18

Item 3. Quantitative and Qualitative Disclosure About Market Risk             19

Item 4. Controls and Procedures                                               19

                            PART II OTHER INFORMATION

Item 1. Legal Proceedings                                                     19

Item 6. Exhibits and Reports on Form 8-K                                      20

Signatures                                                                    21
<PAGE>
PART I FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

                              THE FINOVA GROUP INC.
                      CONDENSED CONSOLIDATED BALANCE SHEETS
                             (DOLLARS IN THOUSANDS)

<TABLE>
<CAPTION>
                                                         MARCH 31, 2003    DECEMBER 31, 2002
                                                           (UNAUDITED)         (AUDITED)
                                                           -----------        -----------
<S>                                                      <C>               <C>
ASSETS
Cash and cash equivalents                                  $   494,982        $   575,215
FINANCING ASSETS:
Loans and other financing contracts, net                     2,413,942          2,655,724
Direct financing leases                                        244,413            263,826
Leveraged leases                                               183,294            182,410
                                                           -----------        -----------
Total financing assets                                       2,841,649          3,101,960
Reserve for credit losses                                     (456,019)          (540,268)
                                                           -----------        -----------
Net financing assets                                         2,385,630          2,561,692
                                                           -----------        -----------
OTHER FINANCIAL ASSETS:
Operating leases                                               103,577            111,826
Assets held for sale                                            94,898            393,125
Assets held for the production of income                        43,189             67,867
Investments                                                     15,498             21,641
                                                           -----------        -----------
Total other financial assets                                   257,162            594,459
                                                           -----------        -----------
TOTAL FINANCIAL ASSETS                                       2,642,792          3,156,151
Other assets                                                    23,797             27,642
                                                           -----------        -----------
                                                           $ 3,161,571        $ 3,759,008
                                                           ===========        ===========
LIABILITIES AND STOCKHOLDERS' EQUITY
LIABILITIES:
Berkadia Loan                                              $ 1,525,000        $ 2,175,000
Senior Notes - (principal amount due of $3.07 billion)       2,389,999          2,381,643
                                                           -----------        -----------
Total debt                                                   3,914,999          4,556,643
Accounts payable and accrued expenses                          187,674            156,338
Deferred income taxes, net                                      16,762             16,776
                                                           -----------        -----------
TOTAL LIABILITIES                                            4,119,435          4,729,757
                                                           -----------        -----------
STOCKHOLDERS' EQUITY:
Common stock, $0.01 par value, 400,000,000 shares
  authorized and 125,873,000 shares issued                       1,259              1,259
Additional capital                                              53,233             53,233
Accumulated deficit                                         (1,008,074)        (1,020,828)
Accumulated other comprehensive loss                            (3,746)            (3,877)
Common stock in treasury, 3,832,000 shares                        (536)              (536)
                                                           -----------        -----------
TOTAL STOCKHOLDERS' EQUITY                                    (957,864)          (970,749)
                                                           -----------        -----------
                                                           $ 3,161,571        $ 3,759,008
                                                           ===========        ===========
</TABLE>

        SEE NOTES TO INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS.

                                       1
<PAGE>
                              THE FINOVA GROUP INC.
                 CONDENSED STATEMENTS OF CONSOLIDATED OPERATIONS
                  (DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA)
                                   (UNAUDITED)

                                           THREE MONTHS ENDED MARCH 31,
                                          ------------------------------
                                              2003             2002
                                          -------------    -------------
REVENUES:
Interest income                           $      49,441    $      80,837
Rental income                                     7,993           10,136
Operating lease income                           12,103           12,202
Fees and other income                            11,174           14,342
                                          -------------    -------------
TOTAL REVENUES                                   80,711          117,517
Interest expense                                (83,694)        (112,290)
Operating lease and other depreciation           (8,174)         (10,065)
                                          -------------    -------------
INTEREST MARGIN                                 (11,157)          (4,838)
                                          -------------    -------------
OTHER REVENUES AND (EXPENSES):
Provision for credit losses                      53,999           25,184
Net (loss) gain on financial assets              (3,142)             968
Portfolio expenses                              (10,524)          (8,025)
General and administrative expenses             (16,422)         (25,468)
                                          -------------    -------------
TOTAL OTHER REVENUES AND (EXPENSES)              23,911           (7,341)
                                          -------------    -------------
Income (loss) before income taxes                12,754          (12,179)
Income tax expense                                                    (2)
                                          -------------    -------------
NET INCOME (LOSS)                         $      12,754    $     (12,181)
                                          =============    =============
Basic/diluted earnings (loss) per share   $        0.10    $       (0.10)
                                          =============    =============
Weighted average shares outstanding         122,041,000      122,041,000
                                          =============    =============

        SEE NOTES TO INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS.

                                       2
<PAGE>
                              THE FINOVA GROUP INC.
                 CONDENSED STATEMENTS OF CONSOLIDATED CASH FLOWS
                             (DOLLARS IN THOUSANDS)
                                   (UNAUDITED)

<TABLE>
<CAPTION>
                                                               THREE MONTHS ENDED MARCH 31,
                                                               ----------------------------
                                                                  2003             2002
                                                               -----------      -----------
<S>                                                            <C>              <C>
OPERATING ACTIVITIES:
  Net income (loss)                                            $    12,754      $   (12,181)
  Adjustments to reconcile net income (loss) to net cash
     provided (used) by operating activities:
    Provision for credit losses                                    (53,999)         (25,184)
    Net cash gain on disposal of financial assets                  (18,560)         (26,369)
    Net non-cash charge-offs of financial assets                    21,702           25,401
    Depreciation and amortization                                    8,956           10,944
    Deferred income taxes, net                                         (14)           3,634
    Other amortization                                               4,069           (2,699)
  Change in assets and liabilities:
    Decrease (increase) in other assets                              3,063             (299)
    Increase in accounts payable and accrued expenses               31,502           17,816
                                                               -----------      -----------
NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES                     9,473           (8,937)
                                                               -----------      -----------
INVESTING ACTIVITIES:
  Proceeds from disposals of leases and other owned assets          29,355           12,455
  Proceeds from sales of investments                                 3,669          130,310
  Proceeds from sales of financial assets                          180,926              716
  Collections from financial assets                                429,220          821,300
  Fundings under existing customer commitments                    (108,221)        (319,669)
  Recoveries of loans previously written off                        25,345           13,132
                                                               -----------      -----------
NET CASH PROVIDED BY INVESTING ACTIVITIES                          560,294          658,244
                                                               -----------      -----------
FINANCING ACTIVITIES:
  Repayments of Berkadia Loan                                     (650,000)      (1,000,000)
                                                               -----------      -----------
NET CASH USED BY FINANCING ACTIVITIES                             (650,000)      (1,000,000)
                                                               -----------      -----------
DECREASE IN CASH AND CASH EQUIVALENTS                              (80,233)        (350,693)

CASH AND CASH EQUIVALENTS,  BEGINNING OF PERIOD                    575,215        1,027,241
                                                               -----------      -----------
CASH AND CASH EQUIVALENTS,  END OF PERIOD                      $   494,982      $   676,548
                                                               ===========      ===========
</TABLE>

        SEE NOTES TO INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS.

                                       3
<PAGE>
                              THE FINOVA GROUP INC.
            CONDENSED STATEMENTS OF CONSOLIDATED STOCKHOLDERS' EQUITY
                             (DOLLARS IN THOUSANDS)
                                   (UNAUDITED)

<TABLE>
<CAPTION>
                                                                                            ACCUMULATED
                                                                                               OTHER        COMMON         TOTAL
                                                     COMMON     ADDITIONAL   ACCUMULATED   COMPREHENSIVE   STOCK IN    STOCKHOLDERS'
                                                      STOCK       CAPITAL      DEFICIT     INCOME (LOSS)   TREASURY       EQUITY
                                                    ---------    ---------   -----------   -------------   ---------    -----------
<S>                                                 <C>          <C>         <C>           <C>             <C>          <C>
BALANCE, JANUARY 1, 2002                            $   1,259    $  16,928   $(1,142,300)    $   4,080     $    (536)   $(1,120,569)
                                                    ---------    ---------   -----------     ---------     ---------    -----------
Comprehensive income:
  Net income                                                                     121,472                                    121,472
  Net change in unrealized holding gains (losses)                                              (10,743)                     (10,743)
  Net change in foreign currency translation                                                     2,786                        2,786
                                                                                                                        -----------
     Comprehensive income                                                                                                   113,515
                                                                                                                        -----------
Benefits realized from pre-confirmation NOLs                        36,029                                                   36,029
Other                                                                  276                                                      276
                                                    ---------    ---------   -----------     ---------     ---------    -----------
BALANCE, DECEMBER 31, 2002                              1,259       53,233    (1,020,828)       (3,877)         (536)      (970,749)
                                                    ---------    ---------   -----------     ---------     ---------    -----------
Comprehensive income:
  Net income                                                                      12,754                                     12,754
  Net change in unrealized holding gains (losses)                                                  111                          111
  Net change in foreign currency translation                                                        20                           20
                                                                                                                        -----------
     Comprehensive income                                                                                                    12,885
                                                    ---------    ---------   -----------     ---------     ---------    -----------
BALANCE, MARCH 31, 2003                             $   1,259    $  53,233   $(1,008,074)    $  (3,746)    $    (536)   $  (957,864)
                                                    =========    =========   ===========     =========     =========    ===========
</TABLE>

        SEE NOTES TO INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS.

                                       4
<PAGE>
                              THE FINOVA GROUP INC.
          NOTES TO INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
                                 MARCH 31, 2003
                        (DOLLARS IN THOUSANDS IN TABLES)
                                   (UNAUDITED)

A. NATURE OF OPERATIONS AND BASIS OF PRESENTATION

The  accompanying  financial  statements  and  notes  thereto  should be read in
conjunction  with  the  consolidated  financial  statements  and  notes  thereto
included in the Company's Annual Report on Form 10-K for the year ended December
31, 2002.  Capitalized  terms not defined herein are used as defined in the Form
10-K.

The following  discussion  relates to The FINOVA Group Inc. and its subsidiaries
(collectively  "FINOVA" or the  "Company"),  including its  principal  operating
subsidiary,  FINOVA Capital Corporation and its subsidiaries ("FINOVA Capital").
FINOVA,  a Delaware  corporation  incorporated in 1991, is a financial  services
holding company.  Through FINOVA Capital, the Company has provided a broad range
of financing and capital  markets  products,  primarily to mid-size  businesses.
FINOVA Capital has been in operation since 1954.

Since  emergence  from  chapter  11  in  August  2001,  the  Company's  business
activities  have been limited to maximizing  the value of its portfolio  through
the  orderly  collection  of its assets.  These  activities  include  collection
efforts  pursuant to  underlying  contractual  terms and may include  efforts to
retain  certain  customer  relationships  and  restructure  or  terminate  other
relationships.  The  Company  has not and does not  expect  to engage in any new
lending activities, except to honor existing customer commitments and in certain
instances,  to restructure  financing  relationships  with existing customers to
maximize value.  Operations have been  restructured to more  efficiently  manage
these collection efforts.  The Company has sold portions of asset portfolios and
will consider future sales if buyers can be found at acceptable prices; however,
there can be no assurance that the Company will be successful in efforts to sell
additional  assets.  Any funds generated from these activities in excess of cash
reserves  permitted in the Company's debt agreements are used to reduce FINOVA's
obligations to its creditors.

GOING CONCERN

FINOVA has a substantial  negative net worth and it is highly  unlikely that the
Company will be able to repay its Senior Notes in their  entirety at maturity in
November 2009. While FINOVA continues to pay its obligations as they become due,
the ability of the Company to continue as a going concern is dependent upon many
factors, particularly the ability of its borrowers to repay their obligations to
FINOVA and the  Company's  ability to realize  the value of its  portfolio.  The
accompanying  condensed  consolidated  financial  statements  do not include any
adjustments  relating to the  recoverability and classification of assets or the
amounts and  classification  of liabilities  that might be necessary  should the
Company be unable to  continue as a going  concern.  The  Company's  independent
public  accountants  qualified their report on the Company's 2002, 2001 and 2000
financial statements due to concerns regarding the Company's ability to continue
as a going concern.

B. SIGNIFICANT ACCOUNTING POLICIES

The preparation of financial statements in conformity with accounting principles
generally  accepted in the Unites  States  requires  FINOVA to use estimates and
assumptions that affect reported amounts of assets and liabilities, revenues and
expenses and disclosure of contingent  assets and  liabilities.  Those estimates
are subject to known and unknown  risks,  uncertainties  and other  factors that
could  materially  impact the amounts  reported and  disclosed in the  financial
statements.  Significant  estimates  include  anticipated  amounts and timing of
future cash flows used in the calculation of Fresh-Start Reporting  adjustments,
the reserve for credit losses and  measurement  of impairment.  Other  estimates
include  selection  of  appropriate  risk  adjusted  discount  rates used in net
present value  calculations,  determination of fair values of certain  financial
assets for which there is not an active market, residual assumptions for leasing
transactions  and  determination  of appropriate  valuation  allowances  against
deferred tax assets. Actual results could differ from those estimated.

For a listing  of the  Company's  significant  accounting  policies,  see Note B
"Significant  Accounting  Policies" in the Company's  Annual Report on Form 10-K
for the year ended December 31, 2002.

                                       5
<PAGE>
CONSOLIDATION POLICY FOR INTERIM REPORTING

The interim condensed  consolidated  financial  statements present the financial
position,  results of operations and cash flows of FINOVA and its  subsidiaries,
including FINOVA Capital and its subsidiaries.  These financial  statements have
been prepared in accordance with accounting principles generally accepted in the
United States. All intercompany balances have been eliminated in consolidation.

The interim condensed  consolidated  financial information is unaudited.  In the
opinion of management,  all  adjustments  consisting of normal  recurring  items
necessary to present fairly the financial  position as of March 31, 2003 and the
results of operations and cash flows presented  herein have been included in the
condensed consolidated financial statements. Interim results are not necessarily
indicative of results of operations for the full year.

C. TOTAL FINANCIAL ASSETS

Total  financial  assets  represents  the  Company's   portfolio  of  investment
activities,  primarily  consisting of secured  financing to commercial  and real
estate  enterprises  principally  under  financing  contracts (such as loans and
other financing  contracts,  direct financing leases and leveraged  leases).  In
addition to its financing  contracts,  the Company has other  financial  assets,
including  assets held for sale,  owned  assets  (such as  operating  leases and
assets  held for the  production  of income)  and  investments  (debt and equity
securities  and  partnership  interests).  As of March 31, 2003 and December 31,
2002, the carrying amount of total  financial  assets (before reserve for credit
losses) was $3.1 billion and $3.7 billion, respectively.

To date, the asset liquidation process has resulted in significant reductions in
size of many of the Company's niche  portfolios.  As a result,  these portfolios
(commercial equipment, communications, corporate finance, franchise, healthcare,
mezzanine and  rediscount)  have been  combined in the table below.  The resort,
transportation and specialty real estate portfolios will continue to be reported
separately.

The  following  table  details  the  composition  and  carrying  amounts  of the
Company's total financial assets at March 31, 2003:

<TABLE>
<CAPTION>
                              REVENUE       REVENUE      NONACCRUING   NONACCRUING      OWNED        TOTAL
                              ACCRUING      ACCRUING       IMPAIRED      LEASES       ASSETS &     FINANCIAL
                               ASSETS       IMPAIRED        LOANS        & OTHER     INVESTMENTS     ASSETS          %
                            -----------    -----------   -----------   -----------   -----------   -----------    ------
<S>                         <C>            <C>           <C>           <C>           <C>           <C>            <C>
Resort                      $   902,421    $    34,697   $    85,736   $    22,988   $     3,500   $ 1,049,342      33.9
Transportation                                 294,593       133,480        52,539       143,237       623,849      20.1
Specialty Real Estate           401,199                       88,290         2,887                     492,376      15.9
All Other Portfolios (1)        148,958        154,697       572,791        41,271        15,527       933,244      30.1
                            -----------    -----------   -----------   -----------   -----------   -----------    ------
TOTAL FINANCIAL ASSETS      $ 1,452,578    $   483,987   $   880,297   $   119,685   $   162,264   $ 3,098,811     100.0
Reserve for credit losses                                                                             (456,019)
                            -----------    -----------   -----------   -----------   -----------   -----------
TOTAL (2)                                                                                          $ 2,642,792
                                                                                                   ===========
</TABLE>

----------
NOTES:

(1)  During  the  first  quarter  of 2003,  the  Company  completed  the sale of
     rediscount  assets  with a  carrying  amount of $188.8  million  for $175.4
     million  of net  cash  proceeds  and a  $17.8  million  participation  in a
     performing loan, resulting in a $4.4 million gain.
(2)  Excludes $117.6 million of assets sold that the Company manages.

Since FINOVA's total financial  assets are  concentrated in certain  specialized
industries  (transportation and resort),  the Company is subject to both general
economic risk and the additional risk of economic  downturns  within  individual
sectors  of the  economy.  Additionally,  the  Company  has  completed  multiple
financial transactions with individual borrowers and their affiliates, resulting
in a greater total exposure to those  borrowers  beyond the typical  transaction
size  and  increased   concentration  risk  of  economic  events  affecting  the
industries of those borrowers and their affiliates.

                                       6
<PAGE>
At March 31,  2003,  the  Company's  transportation  portfolio  consisted of the
following aircraft:

<TABLE>
<CAPTION>
                                                   NUMBER OF                                    APPROXIMATE
Aircraft Type                                      AIRCRAFT      PASSENGER       CARGO       AVERAGE AGE (YEARS)
-------------                                      --------      ---------       -----       -------------------
<S>                                                <C>           <C>             <C>         <C>
Airbus 300                                             8              4             4                13
Boeing 727                                            34              9            25                25
Boeing 737                                            33             33                              19
Boeing 747                                            15              8             7                21
Boeing 757                                             9              9                              10
Boeing 767                                             1              1                              16
McDonnell Douglas DC 8 and DC 9                       33             24             9                30
McDonnell Douglas DC 10                               19              8            11                24
McDonnell Douglas MD series                           30             30                              17
Regional jets, corporate aircraft and turbo props     46             43             3                12
                                                    ----           ----          ----              ----
Total                                                228            169            59                20
                                                    ====           ====          ====              ====
</TABLE>

At March 31,  2003,  78 aircraft  with a carrying  value of $349.8  million were
operated by U.S.  domiciled  carriers and 76 aircraft  with a carrying  value of
$211.1 million were operated by foreign carriers. Additionally, 74 aircraft with
a carrying  value of $38.8  million were  off-lease,  classified as held for the
production of income and were parked at various storage facilities in the United
States and Europe.  Some of these off-lease aircraft are periodically  placed in
rental  agreements  with payments  based on aircraft  usage,  commonly  known as
power-by-the-hour  agreements. Often under these agreements there are no minimum
rents due and future  cash flows are  difficult  to project.  FINOVA's  railroad
portfolio (all domestic) and other transportation equipment had a carrying value
of $24.1 million at March 31, 2003.

In addition to the concentrated  exposures within the transportation  portfolio,
the Company has certain geographic  concentrations  within its resort portfolio.
At March 31, 2003, the carrying  amount of the resort  portfolio by state was as
follows:

                                                            CARRYING
                                                             AMOUNT         %
                                                           ----------    ------
Florida                                                    $  271,736      25.9%
California                                                    154,080      14.7%
Hawaii                                                        130,596      12.4%
Arizona                                                       114,756      10.9%
Nevada                                                        106,516      10.2%
Other (less than 10%)                                         271,658      25.9%
                                                           ----------    ------
Total                                                      $1,049,342     100.0%
                                                           ==========    ======

An analysis of  nonaccruing  assets  included  in total  financial  assets is as
follows:

                                                        MARCH 31,   DECEMBER 31,
                                                          2003          2002
                                                       ----------    ----------
Contracts                                              $  961,009    $1,345,191
Repossessed assets                                         38,973        48,041
                                                       ----------    ----------
Total nonaccruing assets                               $  999,982    $1,393,232
                                                       ----------    ----------
Nonaccruing assets as a percentage of total
  financial assets (before reserves)                         32.3%         37.7%
                                                       ==========    ==========

Accounts classified as nonaccruing were $1.0 billion or 32.3% of total financial
assets (before  reserves) at March 31, 2003 as compared to $1.4 billion or 37.7%
at December 31, 2002. The decline in nonaccruing assets was primarily attributed
to asset sales  (including  the first  quarter  rediscount  sale),  collections,
write-offs  and the  return of  certain  assets  to  accruing  status  following
demonstration of sustained performance.

                                       7
<PAGE>
At March 31, 2003,  total financial assets included $94.9 million of assets held
for sale,  down $298.2  million from December 31, 2002.  The decrease was due to
$200.4 million of asset sales (primarily  rediscount  assets),  $54.3 million of
assets no longer being held for sale and  reclassified  to loans,  net runoff of
$37.0 million and markdowns of $6.5 million.

D. RESERVE FOR CREDIT LOSSES

The following  table presents the balances and changes to the reserve for credit
losses:

                                                    THREE MONTHS ENDED MARCH 31,
                                                    ----------------------------
                                                        2003            2002
                                                     -----------    -----------
Balance, beginning of year                           $   540,268    $ 1,019,878
Provision for credit losses                              (53,999)       (25,184)
Write-offs                                               (55,583)       (47,803)
Recoveries                                                25,345         13,132
Other                                                        (12)            49
                                                     -----------    -----------
Balance, end of period                               $   456,019    $   960,072
                                                     ===========    ===========

For the three months ended March 31, 2003, the Company  recorded a $54.0 million
negative  provision for credit  losses to reduce its reserve for credit  losses.
The negative  provision was primarily due to proceeds  received from prepayments
and asset  sales in excess  of  recorded  carrying  amounts  (net of  reserves),
collections  and  recoveries  of  amounts   previously  written  off.  Partially
offsetting these reversals were new impairment reserves  established on specific
accounts.

A summary of the reserve for credit  losses by impaired  and other  assets is as
follows:

                                                       MARCH 31,    DECEMBER 31,
                                                         2003           2002
                                                       --------       --------
Reserves on impaired assets                            $381,694       $438,172
Other reserves                                           74,325        102,096
                                                       --------       --------
Reserve for credit losses                              $456,019       $540,268
                                                       ========       ========

At March 31, 2003,  the total  carrying  amount of impaired loans and leases was
$1.4 billion,  of which $484.0  million were revenue  accruing.  The Company has
established  impairment  reserves of $381.7 million related to $961.2 million of
nonaccruing  and impaired  assets.  At December  31,  2002,  the total amount of
impaired loans and leases was $1.8 billion, of which $471.1 million were revenue
accruing.  The  impairment  reserve at December 31, 2002 totaled  $438.2 million
related to $1.2 billion of nonaccruing and impaired assets.

Reserves on impaired assets  decreased due to write-offs  (primarily  associated
with  the  repossession  of  aircraft),  a modest  improvement  in  pay-off  and
collection  experience on certain assets  previously  reserved and the Company's
application  of cash received on  nonaccruing  assets,  reducing the  impairment
reserves  on  those  assets.  Partially  offsetting  these  reductions  were new
impairment  reserves  established  for assets  reclassified  to impaired  status
during 2003 and additional reserves recorded on existing impaired assets.

Other  reserves  related  to  estimated  inherent  losses on  unimpaired  assets
decreased  primarily as a result of asset sales,  portfolio  runoff,  changes in
historical loss experience and reclassification of previously  unimpaired assets
to impaired status.

                                       8
<PAGE>
E. DEBT

A summary of the Company's total debt outstanding is as follows:

                                                      MARCH 31,     DECEMBER 31,
                                                        2003           2002
                                                     -----------    -----------
Berkadia Loan                                        $ 1,525,000    $ 2,175,000
Senior Notes:
  Principal                                            3,067,949      3,067,949
  Discount for Fresh-Start Reporting                    (677,950)      (686,306)
                                                     -----------    -----------
Total Senior Notes                                     2,389,999      2,381,643
                                                     -----------    -----------
Total debt                                           $ 3,914,999    $ 4,556,643
                                                     ===========    ===========

During the first quarter of 2003,  prepayments of the Berkadia Loan totaled $650
million,  and  subsequently,  the Company has repaid an additional $225 million.
Principal payments made to Berkadia since emergence from chapter 11 have reduced
the Berkadia  Loan to $1.3 billion as of the filing of this report.  The pace of
loan repayments  depends on numerous factors,  including the rate of collections
from borrowers and asset sales. There can be no assurance that the Berkadia Loan
will continue to be repaid at this pace.

At March 31, 2003, the Senior Notes are reflected in the Company's balance sheet
net of a remaining  $677.9 million  unamortized  discount,  which was originally
recorded with the adoption of Fresh-Start  Reporting upon emergence from chapter
11. The  recorded  book value of the Senior  Notes is  scheduled  to increase to
$3.07  billion  over time  through  amortization  of the  discount  as  interest
expense.  The Company is  obligated  to repay the full $3.07  billion  principal
amount of the Senior Notes.

F. COSTS ASSOCIATED WITH EXIT OR DISPOSAL ACTIVITIES

                                                                       CONTRACT
                                                      TERMINATION    TERMINATION
                                                       BENEFITS         COSTS
                                                      -----------    -----------
Balance, beginning of year                              $ 8,878        $ 9,581
Payments                                                 (2,792)        (1,802)
Net additions                                               394
                                                        -------        -------
Balance, end of period                                  $ 6,480        $ 7,779
                                                        =======        =======

As of March 31,  2003,  FINOVA  had an  outstanding  liability  for  termination
benefits of $6.5  million  covering  approximately  103  individuals  at various
levels throughout the Company, including staff and management.  During the first
quarter of 2003,  the Company  paid  termination  benefits of $2.8  million.  On
December 31,  2002,  the Company  implemented  the  provisions  of SFAS No. 146,
"Accounting for Costs Associated with Exit or Disposal Activities," and must now
recognize  all  future  liability  for  termination  benefits  ratably  over the
employee's  remaining  service period.  Accordingly,  the Company recorded a net
charge of $0.4 million during the first quarter of 2003 for individuals notified
during the quarter of their pending termination.

As of March 31, 2003,  the remaining  liability for contract  termination  costs
related to office leases  totaled $7.8 million.  The decrease since December 31,
2002 was due to the payment of scheduled  lease rentals and  termination  costs,
partially offset by sublease income.

G. INCOME TAXES

For the three months ended March 31, 2003, income tax expense related to pre-tax
book income was  entirely  offset by a decrease in valuation  allowances,  which
were previously  established due to the Company's  concern regarding its ability
to utilize  deferred  tax assets  generated  from losses in prior  periods.  The
reasons  the  Company  may not be able to utilize  all the  deferred  tax assets
include  uncertainty  about the amount of future earnings,  a variety of loss or
other tax attribute carryover  limitations in the various jurisdictions in which

                                       9
<PAGE>
the Company files tax returns and  uncertainty  about the timing of the reversal
of deferred tax  liabilities.  As of March 31, 2003, the Company had federal net
operating losses of $965 million available for carryforward.

ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
        OF OPERATIONS

Management's  Discussion  and  Analysis of  Financial  Condition  and Results of
Operations  should be read in  conjunction  with the Company's  Annual Report on
Form 10-K for the year ended  December 31, 2002.  Capitalized  terms not defined
herein are used as defined in the Form 10-K.

The following  discussion  relates to The FINOVA Group Inc. and its subsidiaries
(collectively  "FINOVA" or the  "Company"),  including its  principal  operating
subsidiary,  FINOVA Capital Corporation and its subsidiaries ("FINOVA Capital").
FINOVA,  a  financial  services  holding  company,  is a  Delaware  corporation,
incorporated in 1991.  Through FINOVA Capital,  the Company has provided a broad
range  of  financing  and  capital  markets  products,   primarily  to  mid-size
businesses.  FINOVA's  business is being  operated  under a Management  Services
Agreement  with Leucadia  National  Corporation  ("Leucadia"),  which expires in
2011. Leucadia has designated its employees to act as Chairman of the Board (Ian
M. Cumming), President (Joseph S. Steinberg) and Chief Executive Officer (Thomas
E. Mara). FINOVA Capital has been in operation since 1954.

CURRENT BUSINESS ACTIVITIES

Since  emergence  from  chapter  11  in  August  2001,  the  Company's  business
activities  have been limited to maximizing  the value of its portfolio  through
the  orderly  collection  of its assets.  These  activities  include  collection
efforts  pursuant to  underlying  contractual  terms and may include  efforts to
retain  certain  customer  relationships  and  restructure  or  terminate  other
relationships.  The  Company  has not and does not  expect  to engage in any new
lending activities, except to honor existing customer commitments and in certain
instances,  to restructure  financing  relationships  with existing customers to
maximize value.  Operations have been  restructured to more  efficiently  manage
these collection efforts.  The Company has sold portions of asset portfolios and
will consider future sales if buyers can be found at acceptable prices; however,
there can be no assurance that the Company will be successful in efforts to sell
additional  assets.  Any funds generated from these activities in excess of cash
reserves  permitted in the Company's debt agreements are used to reduce FINOVA's
obligations to its creditors.

RECENT DEVELOPMENTS

During the first  quarter of 2003,  repayments of the Berkadia Loan totaled $650
million,  and  subsequently,  the Company has repaid an additional $225 million.
Principal payments made to Berkadia since emergence from chapter 11 have reduced
the Berkadia  Loan to $1.3 billion as of the filing of this report.  The pace of
loan repayments  depends on numerous factors,  including the rate of collections
from borrowers and asset sales. There can be no assurance that the Berkadia Loan
will continue to be repaid at this pace.

During the first quarter of 2003,  the Company  completed the sale of rediscount
assets with a carrying  amount of $188.8  million for $175.4 million of net cash
proceeds and a $17.8 million  participation in a performing loan, resulting in a
$4.4 million gain.

APPLICATION OF CRITICAL ACCOUNTING POLICIES AND USE OF ESTIMATES

The Company's  consolidated financial statements are prepared in accordance with
accounting  principles  generally accepted in the United States. The preparation
of these financial  statements  requires FINOVA to use estimates and assumptions
that affect reported  amounts of assets and  liabilities,  revenues and expenses
and disclosure of contingent assets and liabilities. These estimates are subject
to  known  and  unknown  risks,  uncertainties  and  other  factors  that  could
materially   impact  the  amounts   reported  and  disclosed  in  the  financial
statements.  The Company  believes the  following to be among the most  critical
judgment areas in the application of its accounting policies.

CARRYING AMOUNTS, IMPAIRMENT AND USE OF ESTIMATES

Several  of  the   Company's   accounting   policies   pertain  to  the  ongoing
determination of impairment reserves on financing assets and the carrying amount
valuation of other financial  assets.  Determination of impairment  reserves and
carrying amounts rely, to a great extent, on the estimation and timing of future
cash flows.  FINOVA's cash flow estimates  assume that its asset  portfolios are

                                       10
<PAGE>
collected  in an orderly  fashion over time.  These cash flows do not  represent
estimated  recoverable  amounts if FINOVA were to liquidate its asset portfolios
over a short  period  of  time.  Management  believes  that a  short-term  asset
liquidation  could have a material  negative impact on the Company's  ability to
recover recorded asset amounts.

FINOVA's  process  of  determining  impairment  reserves  and  carrying  amounts
includes a periodic assessment of its portfolios on a transaction by transaction
basis.  Cash  flow  estimates  are based on  current  information  and  numerous
assumptions  concerning  future general  economic  conditions,  specific  market
segments,  the  financial  condition  of the  Company's  customers  and FINOVA's
collateral.  In addition,  assumptions  are sometimes  necessary  concerning the
customer's  ability  to  obtain  full  refinancing  of  balloon  obligations  or
residuals at maturity.  Commercial  lenders are conservative  regarding  advance
rates  and  interest  margin  requirements  have  increased.  As a  result,  the
Company's cash flow  estimates  assume FINOVA incurs  refinancing  discounts for
certain transactions.

Changes in facts and assumptions  have resulted in, and may in the future result
in,  significant  positive  or  negative  changes  to  estimated  cash flows and
therefore, impairment reserves and carrying amounts.

Impairment of financing  assets is recorded  through the  Company's  reserve for
credit losses,  and accounting  rules permit the reserve for credit losses to be
increased or  decreased as facts and  assumptions  change.  Impairment  of other
financial  assets is marked down directly  against the asset's  carrying amount.
Accounting  rules permit  further  markdown if changes in facts and  assumptions
result in additional  impairment;  however, most of these assets (except certain
investments  and  assets  held for sale,  which may be marked up for  subsequent
events) may not be marked up if  subsequent  facts and  assumptions  result in a
projected  increase in value.  Recoveries  of previous  markdowns  are  recorded
through operations when realized.

The  carrying  amounts  and  reserve  for credit  losses  recorded  on  FINOVA's
financial  statements reflect the Company's  expectation of collecting less than
the full  contractual  amounts owed by some of its customers and recovering less
than its original  investment in certain owned assets.  The Company continues to
pursue collection of full contractual  amounts and original  investments,  where
appropriate, in an effort to maximize the value of its asset portfolios.

Since 2001, the Company's  portfolio  assessments  have  identified  significant
impairment  within its  transportation  portfolio,  resulting in  markdowns  and
reserves. The current state of the aircraft industry includes significant excess
capacity for both new and used  aircraft and lack of demand for certain  classes
and  configurations  of  aircraft  in the  portfolio.  Accordingly,  the Company
reduced the useful lives and  anticipated  scrap values of various  aircraft and
reduced its estimates  regarding  its ability to lease or sell certain  returned
aircraft.

FINOVA has a significant  number of aircraft that are off lease and  anticipates
that  additional  aircraft  will be returned as leases  expire or operators  are
unable  or  unwilling  to  continue  making  payments.  In  accordance  with the
provisions  of SFAS No.  144  "Accounting  for the  Impairment  or  Disposal  of
Long-Lived  Assets," FINOVA has recorded  impairment losses on owned aircraft by
calculating  the  present  value  of  estimated  cash  flows.  For many of these
aircraft, scrap value was assumed, but for certain aircraft, the Company elected
(or  anticipates  electing upon return of the aircraft) to park and maintain the
aircraft under the assumption  that they will be re-leased or sold in the future
despite the lack of demand for those aircraft today.  While the current inactive
market makes it difficult to quantify,  the Company  believes  that the recorded
values  determined under this methodology  significantly  exceed the values that
the Company would realize if it were to liquidate those aircraft today.

The process of determining  appropriate  carrying  amounts for these aircraft is
particularly  difficult and  subjective,  as it requires the Company to estimate
future  demand,  lease  rates and scrap  values for  assets  for which  there is
currently  little or no  demand.  The  Company  re-assesses  its  estimates  and
assumptions  each quarter.  In particular,  the Company assesses market activity
and the likelihood that certain aircraft types, which are forecast to go back on
lease in the future, will in fact be re-leased,  and may further reduce carrying
amounts if it is  determined  that such  re-leasing is unlikely to occur or that
lower market values have been established.

RESERVE FOR CREDIT  LOSSES.  The reserve for credit losses  represents  FINOVA's
estimate of losses  inherent in the portfolio and includes  reserves on impaired
assets and on assets that are not impaired.  Impairment  reserves are created if
the  carrying  amount  of an asset  exceeds  its  estimated  recovery,  which is
measured  by  estimating  the  present  value  of  expected  future  cash  flows
(discounted  at  contractual  rates),   market  value,  or  the  fair  value  of
collateral.  These  methodologies  include the use of significant  estimates and
assumptions regarding future customer  performance,  amount and timing of future
cash flows and  collateral  value.  Reserves on assets that are not impaired are
based upon assumptions including general economic conditions,  overall portfolio
performance,  including  loss  experience,   delinquencies  and  other  inherent
portfolio characteristics.  Actual results could differ from these estimates and

                                       11
<PAGE>
there can be no assurance that existing reserves will approximate  actual future
losses.  As of March 31,  2003 and  December  31,  2002,  the reserve for credit
losses totaled $456.0 million and $540.3 million, respectively.

OWNED ASSETS.  Assets held for the production of income and operating leases are
carried at  amortized  cost with  impairment  adjustments,  if any,  recorded as
permanent markdowns through operations. An owned asset is considered impaired if
anticipated  undiscounted  cash flows are less than the  carrying  amount of the
asset.  Once the asset has been  deemed  impaired,  accounting  rules  allow for
several  acceptable  methods for  measuring the amount of  impairment.  FINOVA's
typical  method  of  measuring  impairment  is  based on the  comparison  of the
carrying  amount of those assets to the present  value of estimated  future cash
flows, using risk adjusted discount rates.  These estimates include  assumptions
regarding  lessee  performance,  the  amount and  timing of future  cash  flows,
selection of risk adjusted discount rates for net present value calculations and
residual  value  assumptions  for  leases.  If actual  results  differ  from the
estimates used to determine  impairment,  additional markdowns may be necessary,
impacting financial condition and results from operations.  As of March 31, 2003
and December 31, 2002,  owned assets totaled $146.8 million and $179.7  million,
or 4.7% and 4.9% of total financial assets (before reserves), respectively.

ASSETS HELD FOR SALE.  Assets held for sale are  comprised of assets  previously
classified as financing  transactions and other financial assets that management
does not have the intent  and/or the ability to hold to  maturity.  These assets
are carried at the lower of cost or market less  anticipated  selling  expenses,
with  adjustment  to  estimated  market  value,  if any,  recorded  as a loss on
financial  assets.  Market  value  is  often  determined  by the  estimation  of
anticipated  future  cash flows  discounted  at risk  adjusted  market  rates to
determine  net  present  value.  Valuation  of  assets  held for  sale  includes
estimates  regarding market  conditions and ultimate sales prices.  Actual sales
prices could differ from estimates,  impacting  results from  operations.  As of
March 31, 2003 and December 31, 2002, assets held for sale totaled $94.9 million
and  $393.1  million,  or 3.1%  and  10.6%  of total  financial  assets  (before
reserves), respectively.

NONACCRUING  ASSETS.  Accounts  are  generally  classified  as  nonaccruing  and
recognition of income is suspended  when a customer  becomes 90 days past due on
the  payment  of  principal  or  interest,  or  earlier,  if in the  opinion  of
management,  full recovery of contractual income and principal becomes doubtful.
The decision to classify  accounts as nonaccruing on the basis of criteria other
than  delinquency,  is based on  certain  assumptions  and  estimates  including
current and future  general  economic  conditions,  industry  specific  economic
conditions,  customer financial performance,  the ability of customers to obtain
full  refinancing  of balloons or residuals at maturity and FINOVA's  ability or
willingness to provide such refinancing.  In certain instances,  accounts may be
returned  to  accruing   status  if   sustained   contractual   performance   is
demonstrated.  Changes in  assumptions  or estimates  could result in a material
change in nonaccruing account classification and income recognition. As of March
31, 2003 and  December 31, 2002,  $1.0  billion and $1.4  billion,  or 32.3% and
37.7%  of  total  financial  assets  (before   reserves),   were  classified  as
nonaccruing, respectively.

FRESH-START  REPORTING.  Upon  emergence  from  chapter 11, the Company  adopted
Fresh-Start  Reporting,  which resulted in material  adjustments to the carrying
amounts of the Company's assets and liabilities.  The $863.7 million  adjustment
to  assets  was  based on the  present  value of  estimated  future  cash  flows
discounted at appropriate risk adjusted  interest rates. Of this amount,  $365.4
million was  scheduled to amortize  into income over the life of the  underlying
transactions.  If the underlying  transactions  are  classified as  nonaccruing,
amortization  ceases. The Senior Notes were initially recorded at $2.48 billion,
reflecting their estimated fair value. The $771.3 million discount to the Senior
Notes is amortized as additional interest expense over the term of the notes and
the liability  recorded on the Reorganized  Company's balance sheet increases in
an amount  equal to such  amortization.  In the event that any Senior  Notes are
repurchased and extinguished,  as occurred in 2002, the unamortized  fresh-start
adjustment  related  to  those  notes  is  recorded  as an  offset  to any  gain
recognized from extinguishment of the debt. Although the recorded balance is net
of the unamortized discount, the Company's repayment obligation is the principal
amount,  which  was $3.07  billion  at March 31,  2003.  Based on the  Company's
current  financial  condition,  it is highly  unlikely  that there will be funds
available to fully repay the principal amount of the Senior Notes at maturity.

The adjustments relating to the adoption of Fresh-Start  Reporting were based on
estimates of anticipated future cash flows, risk adjusted discount rates and the
market value of the Company's debt  securities  shortly after  emergence,  which
were  determined  prior to September 11, 2001.  Changes to estimated  cash flows
could  further  impact the reserve for credit losses or cause  additional  write
downs of assets.  Generally  accepted  accounting  principles in the U.S. do not
permit  additional fair value  adjustments to the Senior Notes after the initial
Fresh-Start  Reporting  date,  including those that would have resulted from the
impact of September 11.

                                       12
<PAGE>
RESULTS OF OPERATIONS

                                                  THREE MONTHS ENDED MARCH 31,
                                               ---------------------------------
                                                 2003        2002       CHANGE
                                               --------    --------    --------
                                                    (Dollars in thousands)
Interest margin                                $(11,157)   $ (4,838)   $ (6,319)
Provision for credit losses                      53,999      25,184      28,815
Net (loss) gain on financial assets              (3,142)        968      (4,110)
Portfolio expenses                              (10,524)     (8,025)     (2,499)
General and administrative expenses             (16,422)    (25,468)      9,046
Income tax expense                                               (2)          2
                                               --------    --------    --------
Net income (loss)                              $ 12,754    $(12,181)   $ 24,935
                                               ========    ========    ========

THREE MONTHS ENDED MARCH 31, 2003 AND 2002

NET INCOME  (LOSS).  For the three  months  ended  March 31,  2003,  the Company
reported net income of $12.8 million compared to a net loss of $12.2 million for
the three  months ended March 31,  2002.  The results for 2003  included a $54.0
million  negative  provision for credit losses,  partially  offset by a negative
interest  margin  of $11.2  million,  a net  loss on  financial  assets  of $3.1
million, portfolio expenses of $10.5 million and general administrative expenses
of $16.4  million.  In  general,  the net  income  in 2003 was  attributable  to
somewhat better than anticipated realization on FINOVA's asset portfolios,  with
the exception of its transportation  assets, which have continued to deteriorate
consistent  with the aircraft  industry as a whole.  The $12.2  million loss for
2002 was  primarily  the  result of a $4.8  million  negative  interest  margin,
portfolio  expenses of $8.0 million and general and  administrative  expenses of
$25.5 million, partially offset by a $25.2 million negative provision for credit
losses and a $1.0 million net gain on financial assets.

INTEREST  MARGIN.  For the three months ended March 31,  2003,  interest  margin
declined  $6.3  million to a negative  $11.2  million.  The  negative  margin is
primarily due to a significantly  lower level of earning assets than outstanding
debt and  increasing  cost of funds.  The reduction in earning assets was due to
the  continuing  collection  or sale of the  portfolio,  valuation  adjustments,
reduced   funding    requirements   on   existing   customer   commitments   and
reclassification  of earning  assets to nonaccruing  status.  Also impacting the
negative interest margin is the trend in the aggregate cost of funds,  which has
increased  to 7.75% for the three months ended March 31, 2003 from 6.67% for the
same period in 2002.  The cost of debt is expected to increase as the lower cost
Berkadia  Loan (LIBOR  plus  2.25%) is repaid and the higher  cost Senior  Notes
(7.5% stated rate and 10.83% aggregate fixed cost including fresh-start discount
amortization)  becomes  a  higher  percentage  of  outstanding  debt.  Partially
offsetting  the  negative  interest  margin  trend  has been a recent  return to
earning  status  of  certain  assets   following   demonstration   of  sustained
performance and the partial  recognition of suspended income upon the payoff and
collection of certain nonaccruing assets.

PROVISION  FOR CREDIT  LOSSES.  For the three months  ended March 31, 2003,  the
Company recorded a $54.0 million negative  provision for credit losses to reduce
its reserve for credit  losses.  The negative  provision  was  primarily  due to
proceeds  received  from  prepayments  and asset  sales in  excess  of  recorded
carrying  amounts  (net of  reserves),  collections  and  recoveries  of amounts
previously written off. In addition, the Company's income recognition policy for
nonaccruing  accounts can result in periodic reserve  reductions.  In accordance
with  SFAS  No.  114,  "Accounting  by  Creditors  for  Impairment  of a  Loan,"
impairment  reserves are  recorded if the carrying  amount of a loan exceeds the
net present value of expected cash flows,  discounted at the risk-adjusted rates
used for Fresh-Start  Reporting.  For nonaccruing accounts, all cash received is
applied against the carrying amount of the  transaction.  As a result,  carrying
amounts  decline at a faster  pace than net present  value,  thus  reducing  the
impairment reserve.

The $25.2  million  negative  provision  for credit  losses in 2002 was recorded
following the Company's detailed  assessment of estimated inherent losses in its
portfolio, which indicated a slight improvement in estimated cash collections.

The pace of  collections  and  account  payoffs  has been  somewhat  faster than
expected.  In most  portfolios,  with the exception of  transportation,  amounts
collected have, to a certain extent,  exceeded anticipated cash flows, resulting
in a partial reversal of previously established reserves.

The  measurement of credit  impairment and asset valuation is dependent upon the
significant use of estimates and management  discretion when predicting expected
cash  flows.   These   estimates  are  subject  to  known  and  unknown   risks,
uncertainties  and other  factors  that  could  materially  impact  the  amounts

                                       13
<PAGE>
reported and disclosed herein.  See the "Special Note Regarding  Forward-Looking
Statements" for a discussion of these and additional  factors  impacting the use
of estimates.

NET LOSS ON  FINANCIAL  ASSETS.  The  Company  realized a net loss on  financial
assets of $3.1 million for the three  months ended March 31, 2003  compared to a
net gain of $1.0 million for the three months ended March 31, 2002.  Significant
components of the net loss for 2003 consisted of a $20.1 million net markdown of
owned assets within the transportation portfolio, partially offset by a net gain
of $4.4 million  realized on the rediscount  asset sale and net gains  resulting
from  collections and individual  asset sales exceeding the carrying  amounts of
those assets.  The net loss on the  transportation  portfolio  resulted from the
Company's  revised estimate of future cash flows expected to be realized through
the operation or sale of its aircraft portfolio. Due to the current state of the
aircraft industry,  which includes  significant excess capacity for both new and
used  aircraft  and lack of demand for  certain  classes and  configurations  of
aircraft in the Company's portfolio,  the Company reduced cash flows expected to
be received on certain  aircraft and reduced its estimate  regarding its ability
to lease or sell certain returned  aircraft.  Most of the Company's aircraft are
of older vintage with limited demand in the aircraft  market.  As a result,  the
Company  lowered its previous  estimates of future cash flows  expected from its
aircraft portfolio, resulting in an increased level of impairment losses.

The $1.0  million net gain for the three  months  ended March 31, 2002  included
$29.1 million of gains offset by $28.1 million of  additional  losses.  The most
significant  item was a $6.7  million gain  realized on the sale of  investments
during the first quarter of 2002.

The measurement of owned asset  impairment is dependent upon the significant use
of estimates and management  discretion  when  predicting  expected  future cash
flows  and  asset  values.  An  asset  is  considered  impaired  if  anticipated
undiscounted cash flows are less than the carrying amount of the asset. Once the
asset has been  deemed  impaired,  the  accounting  rules  provide  for  several
acceptable methods for measuring the amount of the impairment.  FINOVA's typical
practice is to compare the carrying  amount of the asset to the present value of
the estimated  future cash flows,  using an appropriate  risk adjusted  discount
rate. The process of measuring impairment requires judgment and estimation,  and
the  actual  results  may  differ  from the  estimates.  See the  "Special  Note
Regarding  Forward-Looking  Statements"  for a  discussion  of many factors that
could impact these estimates.

PORTFOLIO  EXPENSES.  For the  three  months  ended  March 31,  2003,  portfolio
expenses  totaled $10.5 million  compared to $8.0 million for 2002. The increase
was primarily attributable to FINOVA's transportation portfolio,  which incurred
expenses of $7.5 million for the three  months ended March 31, 2003  compared to
$3.6 million in 2002.  This increase is directly  related to the large number of
off-lease  aircraft and includes the cost of storing,  maintaining and preparing
certain of these aircraft for potential return to service.  Partially offsetting
this  increase  was a decrease in expenses  pertaining  to the  remainder of the
asset portfolios, resulting from a reduction in portfolio size and the timing of
certain expenses anticipated in 2003.

GENERAL  AND  ADMINISTRATIVE  EXPENSES.   General  and  administrative  expenses
decreased  $9.0  million to $16.4  million for the three  months ended March 31,
2003.  The decrease was primarily due to $6.1 million of cost savings  resulting
from staffing and office  occupancy  reductions (276 employees at March 31, 2003
compared to 441 at March 31, 2002). The remainder of the decrease was the result
of an overall decline in general and administrative expenses caused by decreases
in  portfolio  and  staffing  levels.  The Company  expects the dollar  level of
general and  administrative  expenses to continue to decrease as  portfolio  and
staffing levels  decrease;  however,  general and  administrative  expenses as a
percentage of assets or revenues  will likely  increase over time as a result of
certain  fixed  costs  and the  high  level  of  work  intensive  assets  in the
portfolio.

INCOME TAX  EXPENSE.  For the three  months  ended  March 31,  2003,  income tax
expense  related to pre-tax  book  income was  entirely  offset by a decrease in
valuation  allowances,  which were  previously  established due to the Company's
concern  regarding  its ability to utilize  income tax benefits  generated  from
losses in prior  periods.  As of March 31,  2003,  the  Company  had federal net
operating losses of $965 million available for carryforward.

FINANCIAL CONDITION, LIQUIDITY AND CAPITAL RESOURCES

Because  virtually  all of the  Company's  assets  are  pledged  to  secure  the
obligations under the Berkadia Loan and the Intercompany Notes, FINOVA's ability
to obtain additional or alternate financing is severely restricted. Berkadia has
no obligation to lend  additional  sums to or to further  invest in the Company.
Accordingly,  FINOVA intends to rely on internally  generated cash flows to meet
its liquidity needs.

At March 31, 2003, the Senior Notes are reflected in the Company's balance sheet
net of a remaining  $677.9 million  unamortized  discount,  which was originally
recorded with the adoption of Fresh-Start  Reporting upon emergence from chapter

                                       14
<PAGE>
11. The  recorded  book value of the Senior  Notes is  scheduled  to increase to
$3.07  billion  over time  through  amortization  of the  discount  as  interest
expense.  The Company is  obligated  to repay the full $3.07  billion  principal
amount of the Senior Notes.

During the first  quarter of 2003,  repayments of the Berkadia Loan totaled $650
million,  and  subsequently,  the Company has repaid an additional $225 million.
Principal payments made to Berkadia since emergence from chapter 11 have reduced
the Berkadia  Loan to $1.3 billion as of the filing of this report.  The pace of
loan repayments  depends on numerous factors,  including the rate of collections
from borrowers and asset sales. There can be no assurance that the Berkadia Loan
will continue to be repaid at this pace.

As a result of FINOVA's current financial  condition and restrictions  contained
in its debt agreements  that do not allow FINOVA to incur any meaningful  amount
of new  debt,  the  estimation  of cash  reserves  is  critical  to the  overall
liquidity of the  Company.  Cash  reserve  estimations  are subject to known and
unknown risks,  uncertainties and other factors that could materially impact the
amounts determined.  Failure to adequately estimate a cash reserve in one period
could result in insufficient liquidity to meet obligations in that period, or in
a  subsequent  period,  if actual  cash  requirements  exceed  the cash  reserve
estimates.

BASED ON THE COMPANY'S CURRENT FINANCIAL  CONDITION,  IT IS HIGHLY UNLIKELY THAT
THERE WILL BE FUNDS  AVAILABLE TO FULLY REPAY THE  OUTSTANDING  PRINCIPAL ON THE
SENIOR  NOTES AT  MATURITY,  AND AS A RESULT,  THERE WILL NOT BE A RETURN TO THE
COMPANY'S  STOCKHOLDERS.  The Company has a negative net worth of $957.9 million
as of March 31, 2003 ($1.6  billion if the Senior Notes are  considered at their
principal  amount due);  the  financial  condition  of many of its  customers is
weakened,  impairing their ability to meet  obligations to the Company;  much of
the Company's  portfolio of owned assets is not income producing and the Company
is  restricted  from  entering  into new  business  activities  or  issuing  new
securities to generate  substantial  cash flow. For these  reasons,  THE COMPANY
BELIEVES THAT INVESTING IN FINOVA'S DEBT AND EQUITY  SECURITIES  INVOLVES A HIGH
LEVEL OF RISK TO THE INVESTOR.

In August 2002, in accordance with the Company's debt agreements, FINOVA's Board
of Directors, with Berkadia's consent, approved the use of up to $300 million of
cash to repurchase  Senior Notes rather than make  mandatory  prepayments of the
Berkadia  Loan. In  consideration  for Berkadia's  consent,  FINOVA and Berkadia
agreed that they would share  equally in the "Net  Interest  Savings"  resulting
from any repurchase.  Net Interest  Savings will be calculated as the difference
between (a) the  reduction in interest  expense on the Senior  Notes  (resulting
from the  repurchase  of such  Senior  Notes) and (b) the  increase  in interest
expense  on the  Berkadia  Loan  (resulting  from the use of cash to  repurchase
Senior Notes and to pay 50% of the Net Interest  Savings to Berkadia rather than
make mandatory  prepayments on the Berkadia Loan). On each date that interest is
paid on the outstanding  Senior Notes (a "Note Interest  Payment Date"),  50% of
the Net Interest  Savings accrued since the last Note Interest Payment Date will
be paid to Berkadia.  The other 50% of the Net Interest Savings will be retained
by FINOVA.  Upon repayment in full of the Berkadia Loan,  Berkadia will not have
the right to receive any Net Interest  Savings  accruing  after that  repayment.
Because it is highly unlikely there will be sufficient funds to repay the Senior
Notes at maturity,  the Company,  if it elects to repurchase  additional  Senior
Notes,  intends to do so only at  substantial  discounts to par.  The  agreement
between FINOVA and Berkadia was approved by the "Special  Committee" of FINOVA's
Board of Directors,  which is comprised  solely of directors  unaffiliated  with
Berkadia, Berkshire or Leucadia.

During 2002,  the Company  repurchased  $185.0  million  (face amount) of Senior
Notes at an average  price of 29.93% or $55.4  million,  plus accrued  interest.
There can be no assurance that the Company will repurchase any additional Senior
Notes or that  additional  Senior Notes will become  available at an  acceptable
price.

                                       15
<PAGE>
OBLIGATIONS AND COMMITMENTS.  The following is a listing of FINOVA's significant
contractual  obligations  and  contingent  commitments  at  March  31,  2003 and
December 31, 2002. A detailed  repayment  schedule has not been provided because
the Company's  most  significant  obligations  are  contractual as to amount but
contingent regarding the timing of repayment.  The listing is not intended to be
all  encompassing and excludes normal recurring trade and other accounts payable
obligations.

<TABLE>
<CAPTION>
                                                             MARCH 31, 2003              DECEMBER 31, 2002
                                                       --------------------------    --------------------------
OBLIGATIONS AND COMMITMENTS                            CONTRACTUAL    CONTINGENT     CONTRACTUAL    CONTINGENT
---------------------------                            -----------    -----------    -----------    -----------
                                                                       (Dollars in thousands)
<S>                                                    <C>            <C>            <C>            <C>
Berkadia Loan                                          $ 1,525,000    $              $ 2,175,000    $
Management Services Agreement                               62,000                        64,000
Senior Notes                                             3,067,949                     3,067,949
Contingent interest on Senior Notes                                        94,313                        94,313
Unfunded customer commitments                                             341,016                       568,267
Nonrecourse debt associated with the leveraged lease
portfolio                                                  962,106                       990,908
Lease obligations                                           23,182                        25,878
                                                       -----------    -----------    -----------    -----------
                                                       $ 5,640,237    $   435,329    $ 6,323,735    $   662,580
                                                       ===========    ===========    ===========    ===========
</TABLE>

Principal  repayment of the Berkadia  Loan is  contingent  on available  cash in
excess of cash reserves.  All unpaid  principal and accrued  interest are due at
maturity  on August 20,  2006.  In  addition  to amounts  included in the table,
FINOVA is obligated to pay Berkadia 50% of the Net Interest  Savings,  resulting
from the Senior Note repurchases noted above.  Based on interest rates in effect
as of March 31, 2003, 50% of the Net Interest Savings for repurchases to date is
estimated to be  approximately  $6.0 million per year. The Net Interest  Savings
will  fluctuate  with changes in interest  rates and would change if  additional
Senior Notes are repurchased.

FINOVA's business is being operated under a Management  Services  Agreement with
Leucadia,  which expires in 2011.  FINOVA pays Leucadia an annual management fee
of $8.0 million, paid quarterly in advance.

Principal  repayments of the Senior Notes,  other than  repurchases  approved by
Berkadia  and the  Company's  Board of  Directors,  cannot  commence  until  the
Berkadia Loan is paid in full and is contingent  on the  availability  of excess
cash.  Contingent  interest  cannot  commence until the Senior Notes are paid in
full. Based on the Company's current financial condition,  it is highly unlikely
that there will be funds available to fully repay the  outstanding  principal on
the Senior Notes at maturity in November 2009 or to pay any contingent  interest
through its expiration in 2016.

Unfunded customer  commitments  (primarily unused lines of credit) have declined
from $568.3  million at December  31, 2002 to $341.0  million at March 31, 2003,
primarily due to the elimination of outstanding  commitments associated with the
rediscount  assets  sold  during the first  quarter of 2003 and the  termination
and/or expiration of other outstanding committed lines of credit. Because of the
primarily revolving nature of its commitments, the Company is unable to estimate
with accuracy what portion of the commitments will be funded.  Historically,  in
the  aggregate,  actual  fundings have been  significantly  below the commitment
amounts.

The  nonrecourse  debt  associated with leveraged  leases  represents  principal
amounts due to third party lenders under lease  arrangements.  Nonrecourse  debt
declined to $962.1  million  during the first quarter of 2003,  primarily due to
scheduled principal payments.

Lease  obligations  represent  the  total  contractual   obligations  (rent  and
operating costs) due under operating leases  (primarily leased office space), as
well as commitments  made for tenant  improvements  and lease damages related to
the resolution of previously rejected lease space. Lease obligations declined to
$23.2 million during the first quarter of 2003,  primarily due to scheduled rent
payments.

                                       16
<PAGE>
COLLECTION OF THE PORTFOLIO. As noted previously, the Company's current business
activities  are limited to  maximizing  the value of its  portfolio  through the
orderly  collection  of its  receivables.  These  activities  include  continued
collection  of its  portfolio  pursuant  to  contractual  terms and may  include
efforts to retain certain  customer  relationships  and restructure or terminate
other relationships. The Company will consider the sale of certain portfolios if
buyers can be found at  acceptable  prices.  Due to  restrictions  contained  in
FINOVA's debt  agreements as well as its general  inability to access capital in
the public and private markets, the Company's only viable source of cash flow is
from the collection of its portfolio.  The following table presents the activity
in total financial assets,  net of the reserve for credit losses for the quarter
ended March 31, 2003:

                                                                    (Dollars in
                                                                     thousands)
                                                                    -----------
TOTAL FINANCIAL ASSETS AT DECEMBER 31, 2002                         $ 3,156,151

CASH ACTIVITY:
Fundings under outstanding customer commitments                         108,221
Collections and proceeds from financial assets                         (649,955)
                                                                    -----------
Net cash flows                                                         (541,734)
                                                                    -----------
NON-CASH ACTIVITY:
Reversal of provision for credit losses                                  53,999
Net charge-offs of financial assets                                     (21,868)
Other non-cash activity                                                  (3,756)
                                                                    -----------
Net non-cash activity                                                    28,375
                                                                    -----------
TOTAL FINANCIAL ASSETS AT MARCH 31, 2003                            $ 2,642,792
                                                                    ===========

Total financial assets,  net of the reserve for credit losses,  declined to $2.6
billion at March 31, 2003,  down from $3.2 billion at December 31, 2002.  During
the first  quarter  of 2003,  net cash flow from the  portfolio  totaled  $541.7
million,  while non-cash  activity  resulted in a $28.4 million  increase in net
financial  assets.  Components  of net cash flow  included  $454.5  million from
collections on financial assets (including recoveries),  $195.4 million from the
sale of assets  (excluding  cash  gains),  offset by $108.2  million of fundings
under outstanding customer commitments. Collections on financial assets included
a significant  level of prepayments  (customer  payments in advance of scheduled
due dates). Prepayments are not predictable and given the decline in the size of
FINOVA's  asset  portfolio  and the higher  level of  nonaccruing  assets in the
remaining  portfolio,  prepayment  levels as well as scheduled  amortization are
expected to decline over time.  Non-cash activity included the reversal of $54.0
million of provision  for credit  losses,  offset by a $21.9  million  reduction
related  to  markdowns  of owned  assets  and just  over $3.7  million  of other
non-cash activity,  primarily operating lease depreciation offset by fresh-start
accretion.

FINOVA's reserve for credit losses decreased to $456.0 million at March 31, 2003
from $540.3  million at December 31, 2002. At March 31, 2003, the total carrying
amount of impaired  loans and leases was $1.4 billion,  of which $484.0  million
were revenue accruing. The Company has established impairment reserves of $381.7
million  related to $961.2  million  of  nonaccruing  and  impaired  assets.  At
December  31,  2002,  the total  amount of  impaired  loans and  leases was $1.8
billion, of which $471.1 million were revenue accruing.  The impairment reserves
at  December  31,  2002  totaled  $438.2  million  related  to $1.2  billion  of
nonaccruing and impaired assets.

Reserves on impaired assets  decreased due to write-offs  (primarily  associated
with the  repossession  of  aircraft),  improvement  in pay-off  and  collection
experience on certain assets previously  reserved and the Company's  application
of cash  received  on  nonaccruing  assets,  reducing  the  impairment  reserves
required  on  those  assets.  Partially  offsetting  these  reductions  were new
impairment  reserves  established  for assets  reclassified  to impaired  status
during 2003 and additional reserves recorded on existing impaired assets.

Other  reserves  related to  estimated  inherent  losses on  unimpaired  assets,
decreased  primarily as a result of asset sales,  portfolio  runoff,  changes in
historical loss experience and reclassification of previously  unimpaired assets
to impaired status.

Accounts classified as nonaccruing were $1.0 billion or 32.3% of total financial
assets (before  reserves) at March 31, 2003 as compared to $1.4 billion or 37.7%
at December 31, 2002. The decline in nonaccruing assets was primarily attributed
to asset sales (including the first quarter  rediscount sale), cash collections,
write-offs  and the  return of  certain  assets  to  accruing  status  following
demonstration of sustained performance.

                                       17
<PAGE>
Nonaccruing  assets continue to be affected by the Company's  concerns regarding
its ability to fully collect principal and interest on certain transactions that
have  significant  balloon  payments or  residual  values due at  maturity.  The
current economic  climate has resulted in a general  reduction of operating cash
flow for the typical  FINOVA  borrower and in more  conservative  industry  wide
lending  practices.  As a  result,  FINOVA  is  concerned  that  certain  of its
customers  will not have the ability to obtain  refinancing  at maturity for the
full amount of these residual/balloon payments.  FINOVA's ability or willingness
to  continue  to  extend  credit  to  these  borrowers  may be  affected  by its
restricted  access to the capital  markets and its  assessment  of the costs and
benefits  of  doing  so.  In  certain  of these  cases,  FINOVA  has  classified
transactions  as  nonaccruing  even though  principal and interest  payments are
current. If necessary, impairment reserves on these transactions are established
in accordance with SFAS No. 114.

SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS

Certain  statements  in this report are  "forward-looking,"  in that they do not
discuss  historical  fact,  but instead note future  expectations,  projections,
intentions or other items.  Forward-looking  statements are made pursuant to the
safe-harbor  provisions of the Private Securities Litigation Reform Act of 1995.
These forward-looking  statements include assumptions,  estimates and valuations
implicit  in the  financial  statements  and  related  notes as well as  matters
discussed  in the  sections  of this  report  captioned  "Item  2.  Management's
Discussion and Analysis of Financial  Condition and Results of  Operations"  and
"Item 3.  Quantitative  and Qualitative  Disclosure About Market Risk." They are
also made in documents  incorporated  in this report by  reference,  or in which
this report may be incorporated.

Forward-looking  statements are inherently  subject to risks and  uncertainties,
many of which cannot be predicted or quantified.  When used in this report,  the
words "estimate," "expects,"  "anticipates,"  "believes," "plans," "intends" and
similar  expressions  are intended to identify  forward-looking  statements that
involve  known and unknown risks and  uncertainties.  Risks,  uncertainties  and
other  factors  may cause  FINOVA's  actual  results  or  performance  to differ
materially from those contemplated by the  forward-looking  statements.  Many of
these factors are discussed in this report and include, but are not limited to:

*    The extent to which  FINOVA is  successful  in  implementing  its  business
     strategy,  including  the  efforts to maximize  the value of its  portfolio
     through  orderly  collection  or sales of assets.  Portfolio  decisions are
     based on  estimates  of asset value and actual  results may differ from the
     estimated  amounts.  Failure to fully implement its business strategy might
     result  in  adverse  effects,   impair  the  Company's   ability  to  repay
     outstanding  secured  debt and  other  obligations  and  have a  materially
     adverse  impact on its financial  position and results of  operations.  The
     current  focus  on  maximizing  portfolio  values  and the  absence  of new
     business   generation  will  cause  future  financial   results  to  differ
     materially from prior periods. Similarly, adoption of Fresh-Start Reporting
     upon  emergence  from  bankruptcy  has resulted in  revaluation  of certain
     assets and liabilities and other  adjustments to the financial  statements,
     so that prior results are not indicative of future expectations.

*    Several  of the  Company's  accounting  policies  pertain  to  the  ongoing
     determination  of portfolio  impairment.  These  amounts  rely,  to a great
     extent,  on the estimation and timing of future cash flows.  Actual results
     may differ from the estimates.

*    The  effect  of  economic   conditions  and  the  performance  of  FINOVA's
     borrowers.  Economic conditions in general or in particular market segments
     could  impair the ability of FINOVA's  borrowers to operate or expand their
     businesses,   which  might  result  in  decreased  performance,   adversely
     affecting  their ability to repay their  obligations.  The rate of borrower
     defaults or bankruptcies may increase.  Changing economic  conditions could
     adversely affect FINOVA's ability to realize estimated cash flows.

*    The cost of FINOVA's  capital has increased  significantly  since the first
     quarter of 2000 and will continue to negatively impact results.  Failure to
     comply with its credit obligations could result in additional  increases in
     interest  charges.  In  addition,  changes in  interest  rate  indices  may
     negatively  impact  interest  margin due to lack of matched  funding of the
     Company's assets and liabilities.

*    Loss of employees. FINOVA must retain a sufficient number of employees with
     relevant knowledge and skills to continue to monitor,  collect and sell its
     portfolio.  Failure to do so could result in additional  losses.  Retention
     incentives  intended to retain that  employee base may not be successful in
     the future.

                                       18
<PAGE>
*    Conditions affecting the Company's aircraft portfolio, including changes in
     Federal  Aviation  Administration  directives and conditions  affecting the
     demand for used aircraft and the demand for aircraft spare parts.  FINOVA's
     aircraft are often of older vintage and contain  configurations of engines,
     avionics, fuel tanks and other components that may not be as high in demand
     as other available aircraft in that class. Future demand for those aircraft
     may decrease  further as newer or more  desirable  aircraft and  components
     become available.

*    Changes in  government  regulations,  tax rates and  similar  matters.  For
     example,  government  regulations could significantly  increase the cost of
     doing  business or could  eliminate  certain tax  advantages of some FINOVA
     financing  transactions.  The  Company  has not  recorded  a benefit in its
     financial  statements for its existing tax attributes and estimated  future
     tax  deductions  since it does not expect to  generate  the future  taxable
     income needed to use those tax  benefits.  The Company may never be able to
     use those tax attributes.

*    Necessary  technological  changes,  such as  implementation  of information
     management systems,  may be more difficult,  expensive or time consuming to
     implement than anticipated.

*    Potential liabilities associated with dispositions of assets.

*    The  accuracy  of  information  relied  upon  by  FINOVA,   which  includes
     information supplied by its borrowers or prepared by third parties, such as
     appraisers.  Inaccuracies in that information could lead to inaccuracies in
     the estimates.

*    As the portfolio declines, increasing concentrations of financial assets in
     certain industries such as resort and transportation could make the overall
     portfolio more subject to changes in performance in those industries.

*    Other risks detailed in this and FINOVA's other SEC reports or filings.

FINOVA does not intend to update  forward-looking  information to reflect actual
results or changes in  assumptions  or other  factors  that could  affect  those
statements.  FINOVA  cannot  predict the risk from  reliance on  forward-looking
statements in light of the many factors that could affect their accuracy.

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURE ABOUT MARKET RISK

There were no material  changes from the  information  provided in the Company's
Annual Report on Form 10-K for the year ended December 31, 2002.

ITEM 4. CONTROLS AND PROCEDURES

(a)  Based on their evaluation as of a date within 90 days of the filing date of
     this Form 10-Q, the Company's Chief  Executive  Officer and Chief Financial
     Officer  have  concluded  that  the  Company's   disclosure   controls  and
     procedures (as defined in Rules  13a-14(c) and 15d-14(c) under the Exchange
     Act) are effective to ensure that  information  required to be disclosed by
     the Company in reports that it files or submits  under the Exchange Act are
     recorded,  processed,  summarized  and  reported  within  the time  periods
     specified in Securities and Exchange Commission rules and forms.

(b)  There were no significant  changes in the Company's internal controls or in
     other factors that could significantly  affect these controls subsequent to
     the date of their evaluation,  including any corrective actions with regard
     to significant  deficiencies and material weaknesses.  However, the Company
     continues to reduce its workforce, consolidate its operations and outsource
     certain  functions.   Accordingly,   responsibility   for   administration,
     management  and review of many of the  Company's  assets  has  transitioned
     among  FINOVA's  remaining  personnel.   Management  has  supervised  these
     transitions and has implemented  procedures  designed to provide  effective
     controls and processes during and after this  transition.  The Company will
     continue to assess the efficacy of these procedures in subsequent periods.

PART II  OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS

There were no material  changes from the  information  provided in the Company's
Annual Report on Form 10-K for the year ended December 31, 2002.

                                       19
<PAGE>
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K

a)   Exhibits

     99.1     Certification of the Chief Executive Officer pursuant to
              Section 906 of the Sarbanes-Oxley Act of 2002.

     99.2     Certification of the Chief Financial Officer pursuant to
              Section 906 of the Sarbanes-Oxley Act of 2002.

b)   Reports on Form 8-K
     None.

                                       20
<PAGE>
                              THE FINOVA GROUP INC.

SIGNATURES

Pursuant  to the  requirements  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.


                                        THE FINOVA GROUP INC.
                                        (Registrant)

Dated: May 12, 2003                     By: /s/ Stuart A. Tashlik
                                            ------------------------------------
                                            Stuart A. Tashlik, Senior Vice
                                            President, Chief Financial Officer
                                            Principal Financial and Accounting
                                            Officer

                                       21
<PAGE>

                                 CERTIFICATIONS

I, Thomas E. Mara,  Chief  Executive  Officer of The FINOVA Group Inc.,  certify
that:

1. I have reviewed this quarterly report on Form 10-Q of The FINOVA Group Inc.;

2. Based on my  knowledge,  this  quarterly  report  does not contain any untrue
statement of a material fact or omit to state a material fact  necessary to make
the statements made, in light of the  circumstances  under which such statements
were made, not  misleading  with respect to the period covered by this quarterly
report;

3.  Based  on my  knowledge,  the  financial  statements,  and  other  financial
information  included in this quarterly  report,  fairly present in all material
respects the financial  condition,  results of operations  and cash flows of the
registrant as of, and for, the periods presented in this quarterly report;

4.  The  registrant's  other  certifying  officers  and  I are  responsible  for
establishing and maintaining  disclosure  controls and procedures (as defined in
Exchange Act Rules 13a-14 and 15d-14) for the registrant and we have:

     a)   designed  such  disclosure  controls  and  procedures  to ensure  that
          material  information  relating  to  the  registrant,   including  its
          consolidated subsidiaries,  is made known to us by others within those
          entities,  particularly  during  the  period in which  this  quarterly
          report is being prepared;

     b)   evaluated the  effectiveness of the registrant's  disclosure  controls
          and procedures as of a date within 90 days prior to the filing date of
          this quarterly report (the "Evaluation Date"); and

     c)   presented  in  this  quarterly   report  our  conclusions   about  the
          effectiveness  of the disclosure  controls and procedures based on our
          evaluation as of the Evaluation Date;

5. The registrant's other certifying officers and I have disclosed, based on our
most recent evaluation,  to the registrant's auditors and the audit committee of
registrant's board of directors (or persons performing the equivalent function):

     a)   all  significant  deficiencies  in the design or operation of internal
          controls  which could  adversely  affect the  registrant's  ability to
          record,  process,   summarize  and  report  financial  data  and  have
          identified for the  registrant's  auditors any material  weaknesses in
          internal controls; and

     b)   any fraud, whether or not material,  that involves management or other
          employees who have a  significant  role in the  registrant's  internal
          controls; and

6. The  registrant's  other  certifying  officers  and I have  indicated in this
quarterly  report  whether or not there  were  significant  changes in  internal
controls or in other factors that could  significantly  affect internal controls
subsequent to the date of our most recent  evaluation,  including any corrective
actions with regard to significant deficiencies and material weaknesses.

Date: May 8, 2003                       /s/ Thomas E. Mara
                                        ------------------------------
                                        Thomas E. Mara
                                        Chief Executive Officer

                                       22
<PAGE>
                                 CERTIFICATIONS

I, Stuart A. Tashlik,  Chief Financial Officer of The FINOVA Group Inc., certify
that:

1. I have reviewed this quarterly report on Form 10-Q of The FINOVA Group Inc.;

2. Based on my  knowledge,  this  quarterly  report  does not contain any untrue
statement of a material fact or omit to state a material fact  necessary to make
the statements made, in light of the  circumstances  under which such statements
were made, not  misleading  with respect to the period covered by this quarterly
report;

3.  Based  on my  knowledge,  the  financial  statements,  and  other  financial
information  included in this quarterly  report,  fairly present in all material
respects the financial  condition,  results of operations  and cash flows of the
registrant as of, and for, the periods presented in this quarterly report;

4.  The  registrant's  other  certifying  officers  and  I are  responsible  for
establishing and maintaining  disclosure  controls and procedures (as defined in
Exchange Act Rules 13a-14 and 15d-14) for the registrant and we have:

     a)   designed  such  disclosure  controls  and  procedures  to ensure  that
          material  information  relating  to  the  registrant,   including  its
          consolidated subsidiaries,  is made known to us by others within those
          entities,  particularly  during  the  period in which  this  quarterly
          report is being prepared;

     b)   evaluated the  effectiveness of the registrant's  disclosure  controls
          and procedures as of a date within 90 days prior to the filing date of
          this quarterly report (the "Evaluation Date"); and

     c)   presented  in  this  quarterly   report  our  conclusions   about  the
          effectiveness  of the disclosure  controls and procedures based on our
          evaluation as of the Evaluation Date;

5. The registrant's other certifying officers and I have disclosed, based on our
most recent evaluation,  to the registrant's auditors and the audit committee of
registrant's board of directors (or persons performing the equivalent function):

     a)   all  significant  deficiencies  in the design or operation of internal
          controls  which could  adversely  affect the  registrant's  ability to
          record,  process,   summarize  and  report  financial  data  and  have
          identified for the  registrant's  auditors any material  weaknesses in
          internal controls; and

     b)   any fraud, whether or not material,  that involves management or other
          employees who have a  significant  role in the  registrant's  internal
          controls; and

6. The  registrant's  other  certifying  officers  and I have  indicated in this
quarterly  report  whether or not there  were  significant  changes in  internal
controls or in other factors that could  significantly  affect internal controls
subsequent to the date of our most recent  evaluation,  including any corrective
actions with regard to significant deficiencies and material weaknesses.

Date: May 12, 2003                      /s/ Stuart A. Tashlik
                                        ------------------------------
                                        Stuart A. Tashlik
                                        Chief Financial Officer

                                       23
<PAGE>
                                  EXHIBIT INDEX

EXHIBIT NUMBER                     DESCRIPTION
--------------                     -----------

     99.1           Certification  of the Chief  Executive  Officer  pursuant to
                    Section 906 of the Sarbanes-Oxley Act of 2002.

     99.2           Certification  of the Chief  Financial  Officer  pursuant to
                    Section 906 of the Sarbanes-Oxley Act of 2002.

                                       24