SECURITIES AND EXCHANGE COMMISSION

                             Washington, D.C. 20549

                                   ----------

                                    FORM 10-Q

[X]  Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange
     Act of 1934 For the Quarterly Period Ended December 31, 2000

                                       or

[ ]  Transition  Report  Pursuant  to Section  13 or 15(d) of the  Securities
     Exchange  Act of 1934  for  the  transition  period  from  ____________  to
     ____________

                         Commission File Number 0-22153

                                   ----------

                         AMERITRANS CAPITAL CORPORATION
             (Exact name of registrant as specified in its charter)

              Delaware                                     52-2102424
  (State or other jurisdiction of                       (I.R.S. Employer
   incorporation or organization)                      Identification No.)

          747 Third Avenue
            Fourth Floor
         New York, New York                                   10017
      (Address of Registrant's                             (Zip Code)
     principal executive office)

       Registrant's telephone number, including area code: (800) 214-1047

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 [  ]

        The number of shares of Common Stock, par value $.0001 per share,
                 outstanding as of February 13, 2001: 1,745,600

<PAGE>


                         AMERITRANS CAPITAL CORPORATION

                                   FORM 10-Q

                                Table of Contents


PART I. FINANCIAL INFORMATION
Item 1. Financial Statements
           Consolidated  Balance  Sheets as of December 31, 2000
             (unaudited) and June 30, 2000 .................................   1
           Consolidated  Statements of Operations -- For the Three and Six
             Month periods Ended December 31, 2000 and 1999 (unaudited) ....   3
           Consolidated  Statements of Cash Flows -- For the Six
             Months Ended December 31, 2000 and 1999 (unaudited) ...........   4
           Notes to Consolidated Financial Statements ......................   6
Item 2.  Management's Discussion and Analysis of Financial
           Condition and Results of Operations .............................  14

PART II. OTHER INFORMATION

Item 5   Other Information .................................................  15

Item 6.  Exhibits and Reports on Form 8-K ..................................  15

         Signatures ........................................................  16


                                      -ii-
<PAGE>

                                     PART I

                              FINANCIAL INFORMATION


                 AMERITRANS CAPITAL CORPORATION AND SUBSIDIARIES
                           CONSOLIDATED BALANCE SHEETS

                 December 31, 2000 (Unaudited) and June 30, 2000

                                     ASSETS

<TABLE>
<CAPTION>
                                                         December 31, 2000      June 30, 2000
                                                         ------------------     -------------
<S>                                                         <C>                 <C>
Loans receivable ...................................        $ 56,159,543        $ 56,806,579
Less: allowance for loan losses ....................            (572,000)           (380,000)
                                                            ------------        ------------

                                                              55,587,543          56,426,579
Cash and cash equivalents ..........................             614,986             376,507
Accrued interest receivable ........................             903,864             928,765
Assets acquired in satisfaction of loans ...........             932,814             609,106
Receivables from debtors on sales of assets acquired
    in satisfaction of loans .......................             431,282             743,954
Equity securities ..................................             560,172             631,974
Furniture, fixtures and leasehold improvements, net               94,075             110,019
Prepaid expenses and other assets ..................             760,379             467,720
                                                            ------------        ------------

                    TOTAL ASSETS ...................        $ 59,885,115        $ 60,294,624
                                                            ============        ============
</TABLE>

   The accompanying notes are an integral part of these financial statements.


                                       -1-

<PAGE>


                 AMERITRANS CAPITAL CORPORATION AND SUBSIDIARIES
                           CONSOLIDATED BALANCE SHEETS

                 December 31, 2000 (Unaudited) and June 30, 2000

                      LIABILITIES AND STOCKHOLDERS' EQUITY


<TABLE>
<CAPTION>
                                                                 December 31, 2000   June 30, 2000
                                                                 ------------------  -------------
<S>                                                                 <C>                <C>
LIABILITIES
        Debentures payable to SBA ..........................        $ 8,880,000        $ 8,880,000
        Notes payable, banks ...............................         37,000,000         37,800,000
        Accrued expenses and other liabilities .............            425,382            365,328
        Accrued interest payable ...........................            293,711            365,270
        Dividends Payable...................................            331,664
                                                                    -----------        -----------

             TOTAL LIABILITIES .............................         46,930,757         47,410,598
                                                                    -----------        -----------

COMMITMENTS AND CONTINGENCIES
STOCKHOLDER'S EQUITY
        Common stock, $.0001 par value: 5,000,000 shares
        authorized; 1,745,600 shares issued and outstanding,                175                175
        Additional paid-in-capital .........................         13,471,474         13,471,474
        Accumulated deficit ................................           (654,725)          (725,057)
        Accumulated other comprehensive income .............            137,434            137,434
                                                                    -----------        -----------

             TOTAL STOCKHOLDERS' EQUITY ....................         12,954,358         12,884,026
                                                                    -----------        -----------

             TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY ....        $59,885,115        $60,294,624
                                                                    ===========        ===========
</TABLE>

   The accompanying notes are an integral part of these financial statements.


                                       -2-

<PAGE>

                 AMERITRANS CAPITAL CORPORATION AND SUBSIDIARIES
                      CONSOLIDATED STATEMENTS OF OPERATIONS
                                   (UNAUDITED)

      For the Three Months and Six Months Ended December 31, 2000 and 1999

<TABLE>
<CAPTION>
                                             Three Months Ended   Three Months Ended         Six Months Ended     Six Months Ended
                                              December 31, 2000    December 31, 1999         December 31, 2000    December 31, 1999
                                              -----------------    -----------------         -----------------    -----------------
<S>                                              <C>                   <C>                      <C>                  <C>
INVESTMENT  INCOME
  Interest on loans receivable                   $ 1,492,157           $ 1,502,653              $ 3,040,502          $ 2,906,923
  Fees and other income                              106,053               176,755                  182,036              291,316
  Gain on sale of equity security                     12,130                76,169                   12,130               76,169
                                                 -----------           -----------              -----------          -----------
    TOTAL INVESTMENT INCOME                        1,610,340             1,755,577                3,234,668            3,274,408
                                                 -----------           -----------              -----------          -----------
OPERATING EXPENSES
  Interest                                           782,271               818,863                1,744,770            1,546,047
  Salaries and employee benefits                     168,110               136,119                  309,604              281,128
  Legal fees                                          41,746               142,581                   80,037              237,549
  Miscellaneous administrative expenses              262,964               241,241                  441,254              437,917
  Loss on assets acquired in
    satisfaction of loans, net                        36,405                 1,876                   55,769                1,935
  Directors' fee                                        (750)                5,250                     (500)              20,250
  Bad debt expense                                       -0-                81,050                  194,298               81,050
  Recapitalization costs                                                   345,941                                       345,941
                                                 -----------           -----------              -----------          -----------
TOTAL OPERATING EXPENSES                           1,290,746             1,772,921                2,825,232            2,951,817
                                                 -----------           -----------              -----------          -----------
OPERATING INCOME                                     319,594               (17,344)                 409,436              322,591
                                                 -----------           -----------              -----------          -----------
    INCOME BEFORE INCOME TAXES                       319,594               (17,344)                 409,436              322,591

INCOME TAXES (BENEFIT)                                 5,349                 8,772                    7,440               11,983
                                                 -----------           -----------              -----------          -----------
    NET INCOME (LOSS)                            $   314,245           $   (26,116)             $   401,996          $   310,608
                                                 ===========           ===========              ===========          ===========
WEIGHTED AVERAGE SHARES OUTSTANDING
- Basic                                            1,745,600             1,745,600                1,745,600            1,745,600
                                                 ===========           ===========              ===========          ===========
- Diluted                                          1,745,600             1,746,572                1,745,600            1,746,572
                                                 ===========           ===========              ===========          ===========
NET INCOME (LOSS) PER COMMON SHARE
- Basic                                          $     .1800           $    (.0150)             $     .2303          $     .1779
                                                 ===========           ===========              ===========          ===========
- Diluted                                        $     .1800           $    (.0150)             $     .2303          $     .1778
                                                 ===========           ===========              ===========          ===========
</TABLE>

   The accompanying notes are an integral part of these financial statements.


                                       -3-
<PAGE>


                 AMERITRANS CAPITAL CORPORATION AND SUBSIDIARIES
                      CONSOLIDATED STATEMENTS OF CASH FLOWS
                                   (UNAUDITED)

               For the Six Months Ended December 31, 2000 and 1999

<TABLE>
<CAPTION>
                                                                 December 31, 2000   December 31, 1999
                                                                 -----------------   -----------------
<S>                                                                   <C>               <C>
CASH FLOWS FROM OPERATING ACTIVITIES
    Net income                                                        $  401,996        $  310,608
                                                                     -----------       -----------

    Adjustments  to  reconcile  net  income to net cash
        provided  by  operating activities:
        Depreciation and amortization                                     18,891            24,985
        Increase (Decrease) in accrued interest receivable                24,901          (143,413)
        Increase in prepaid expenses and other assets                   (292,659)          (46,036)
        Increase in accrued expenses and other liabilities                60,054            38,671
        Increase (decrease) in accrued interest payable                  (71,559)           59,630
                                                                     -----------       -----------

            TOTAL ADJUSTMENTS                                           (260,372)          (66,163)
                                                                     -----------       -----------

             NET CASH PROVIDED BY OPERATING ACTIVITIES                   141,624           244,445
                                                                     -----------       -----------

CASH FLOWS FROM INVESTING ACTIVITIES
        Net change in loans receivable, assets acquired in
            satisfaction of loans and receivables from debtors
            on sales of assets acquired in satisfaction of loans         828,000        (6,910,242)
        (Purchases) sales of equity securities                            71,802           (34,760)
        Acquisition of furniture, fixtures and leasehold
            improvements                                                  (2,947)          (46,211)
                                                                     -----------       -----------

            NET CASH USED IN INVESTING ACTIVITIES                        896,855        (6,991,213)
                                                                     -----------       -----------

CASH FLOWS FROM FINANCING ACTIVITIES
        Repayment from proceeds of notes payable, banks, net            (800,000)        7,600,000
        Dividends paid                                                                    (628,416)
                                                                     -----------       -----------

             NET CASH PROVIDED BY FINANCING ACTIVITIES                $ (800,000)       $6,971,584
                                                                     -----------       -----------
</TABLE>


   The accompanying notes are an integral part of these financial statements.


                                       -4-

<PAGE>


                 AMERITRANS CAPITAL CORPORATION AND SUBSIDIARIES
                      CONSOLIDATED STATEMENTS OF CASH FLOWS
                             (UNAUDITED), Continued

               For the Six Months Ended December 31, 2000 and 1999

                                          December 31, 2000   December 31, 1999
                                          -----------------   -----------------

NET INCREASE IN CASH AND CASH EQUIVALENTS      $ 238,479         $   224,816
CASH AND CASH EQUIVALENTS - Beginning            376,507             542,290
                                             -----------         -----------

CASH AND CASH EQUIVALENTS - Ending              $614,986         $   767,106
                                             ===========         ===========


   The accompanying notes are an integral part of these financial statements.


                                       -5-

<PAGE>


                 AMERITRANS CAPITAL CORPORATION AND SUBSIDIARIES
                          NOTES TO FINANCIAL STATEMENTS

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTE 1 -- Organization and Summary of Significant Accounting Policies

Financial Statements

     The  consolidated  balance sheet of  Ameritrans  Capital  Corporation  (the
"Company") as of December 31, 2000, the related  statements of  operations,  and
cash flows for the six months  ended  December  31, 2000 and  December  31, 1999
included in Item 1 have been prepared by the Company, without audit, pursuant to
the rules and  regulations of the Commission.  Certain  information and footnote
disclosures  normally  included in financial  statements  prepared in accordance
with generally  accepted  accounting  principles  have been condensed or omitted
pursuant  to such  rules and  regulations.  In the  opinion of  management,  the
accompanying   consolidated   financial   statements   include  all  adjustments
(consisting of normal,  recurring adjustments) necessary to summarize fairly the
Company's  financial  position  and  results  of  operations.   The  results  of
operations  for the six  months  ended  December  31,  2000 are not  necessarily
indicative of the results of  operations  for the full year or any other interim
period.  These  financial  statements  should  be read in  conjunction  with the
audited  financial  statements  and notes thereto  included in the the Company's
Annual Report on Form 10-K for the fiscal year ended June 30, 2000 as filed with
the Commission.

     Organization and Principal Business Activity

     Ameritrans  Capital  Corporation  ("Ameritrans"),  a  Delaware  corporation
acquired all of the  outstanding  shares of Elk  Associats  Funding  Corporation
("Elk")  on  December  16,  1999 in a share  for  share  exchange.  Prior to the
acquisition,  Elk  had  been  operating  independently  and  Ameritrans  had  no
operations.  The historical financial statements prior to December 16, 1999 were
those of Elk.

     Elk,  a  New  York   corporation,   is  licensed  by  the  Small   Business
Administration  ("SBA")  to  operate  as a  small  Business  Investment  Company
("SBIC")  under the Small Business  Investment Act of 1958, as amended.  Elk has
also  registered as an investment  company under the  Investment  Company Act of
1940 to make business loans.

     Ameritrans is a specialty finance company that through its subsidiary,  Elk
makes loans to taxi  owners,  to finance the  acquisition  and  operation of the
medallion taxi businesses and related assets,  and to other small  businesses in
the New York City, Chicago, Miami, and Boston markets.

     Basis of Consolidation

     The consolidated  financial  statements include the accounts of Ameritrans,
Elk and EAF Holding  Corporation  ("EAF"),  a wholly  owned  subsidiary  of Elk,
collectively  referred  to  as  the  "Company".  All  significant  inter-company
transactions have been eliminated in consolidation.

     EAF was formed in June 1992 and began  operations  in  December  1993.  The
purpose of EAF is to own and  operate  certain  real estate  assets  acquired in
satisfaction of loans by Elk.

     Ameritrans  organized  another  subsidiary  on June 8,  1998,  Elk  Capital
Corporation ("Elk Capital"),  which may engage in similar lending and investment
activities. Since inception, Elk Capital had no operations and activities.

     Loans and the Allowance for Loans Losses

     Loans are stated at cost, net of participation with other lenders,  less an
allowance for possible  losses.  This amount  represents  the fair value of such
loans as determined  in good faith by the Board of Directors.  The allowance for
loan losses is maintained at a level that, in the Board of Directors' judgement,
is adequate to absorb losses  inherent in the portfolio.  The allowance for loan
losses is reviewed  and adjusted  periodically  by the Board of Directors on the
basis of available information, including the fair value of the collateral held,
existing  risk  of  individual  credits,  past  loss  experience,   the  volume,
composition  and growth of the  portfolio,  and current and  projected  economic
conditions.  Because of the inherent  uncertainty in the estimation process, the
estimated fair values of the loans may differ significantly from the values that
would  have  been  used  had a ready  market  existed  for  such  loans  and the
differences  could be  material.  As of  December  31,  2000  and June 30,  2000
approximately  78% of all loans are  collateralized  by New York  City,  Boston,
Chicago, and Miami taxicab medallions.

     Accounting Standard for Impairment of Loans

     Pursuant to Statement of Financial Accounting Standards ("SFAS") No. 114 as
amended by SFAS No. 118,  "Accounting  by Creditors for  Impairment of a Loan --
Income Recognition and Disclosure", a loan is determined to be impaired if it is
probable  that the  contractual  amounts due will not be collected in accordance
with the terms of the loan. The SFAS  generally  requires that impaired loans be
measured based on the present value of expected future cash flows  discounted at
the loan's effective interest rate or, as a practical  expedient,  at the loan's
observable  market  price or the fair  value  of the  collateral  if the loan is
collateral  dependent.  As all of the Company's loans are collateral  dependent,
impairment is measured  based on the fair value of the  collateral.  If the fair
value of the  impaired  loan is less than the  recorded  investment  in the loan
(including accrued interest, net of deferred loan fees or costs, and unamortized
premium  or  discount)  the  Company  recognized  an  impairment  by  creating a
valuation  allowance  with a  corresponding  charge  to the  provision  for loan
losses. The Company individually evaluates all loans for impairment.


                                       6

<PAGE>

     Loans Receivable

     Loans are placed on nonaccrual status once they become 180 days past due as
to principle or interest.  In addition,  loans that are not fully collateralized
and in the process of collection  are placed on  nonaccrual  status when, in the
judgement of management,  the ultimate  collectibility of interest and principal
is doubtful.

     Cash and Cash Equivalents

     For the purposes of the statement of cash flows, the Company  considers all
short-term  investments with an original  maturity of three months or less to be
cash equivalents.

     The  Company has cash  balances  in banks in excess of the  maximum  amount
insured by the FDIC as of December 31, 2000 and June 30, 2000.

     Income Taxes

     The Company has elected to be taxed as a Regulated Investment Company under
the Internal Revenue Code. A Regulated  Investment Company will generally not be
taxed at the  corporate  level to the extent its  income is  distributed  to its
stockholders.  In  order  to be taxed as a  Regulated  Investment  Company,  the
Company  must pay at least 90  percent  of its net  investment  company  taxable
income to its stockholders as well as meet other requirements under the Code. In
order to preserve this election for fiscal 2001, the Company intends to make the
required  distributions  to its  stockholders  in accordance with applicable tax
rules.

     Depreciation and Amortization

     Depreciation  and   amortization  of  furniture,   fixtures  and  leasehold
improvements  is  computed  on the  straight-line  method at rates  adequate  to
allocate the cost of applicable assets over their expected useful lives.

     Net Income per Share

     During the year ended June 30, 1999,  the Company  adopted the provision of
Statements of Financial Accounting Standards No. 128 "Earnings per Share" ("SFAS
No.  128").  SFAS No. 128  eliminates  the  presentation  of  primary  and fully
dilutive  earnings  per share  ("EPS") and  requires  presentation  of basic and
diluted EPS. Basic EPS is computed by dividing income (loss) available to common
stockholders by the weighted-average number of common shares outstanding for the
period. Diluted EPS is based on the weighted-average  number of shares of common
stock and common stock equivalents outstanding at year end. At December 31, 2000
and June 30, 2000 the Company has 133,336 options  outstanding which resulted in
common stock equivalents of nil and 5,084 shares, respectively.

     Loan Costs

     Loan costs are included in prepaid expenses and other assets.  Amortization
of loan costs is computed on the  straight-line  method over ten (10) years.  At
December  31,  2000 and June 30,  2000,  loan  costs  amounted  to  $92,649  and
$104,877,   respectively,  net  of  accumulated  amortization  of  $151,332  and
$139,104, respectively.

     Amortization  expense for the periods ended December 31, 2000 and June 30,
2000 was $12,228 and $24,455, respectively.


                                       7

<PAGE>


     Assets Acquired in Satisfaction of Loans

     Assets  acquired in  satisfaction  of loans are carried at  estimated  fair
value less selling costs. Losses incurred at the time of foreclosure are charged
to the  allowance  for loan  losses.  Subsequent  reductions  in  estimated  net
realizable  value are recorded as losses on assets  acquired in  satisfaction of
loans.

     Use of Estimates in the Financial Statements

     The  preparation  of financial  statements  in  conformity  with  generally
accepted  accounting  principles  requires  management  to  make  estimates  and
assumptions  that affect the reported  amounts of assets and  liabilities at the
date of the  financial  statements  and the  reported  amounts of  revenues  and
expenses  during the reporting  period.  Actual  results could differ from those
estimates.  Estimates that are particularly  susceptible to change relate to the
determination  of the  allowance for loan losses and the fair value of financial
instruments.

     Comprehensive Income

     During the year ended  June 30,  1999,  the  Company  adopted  SFAS No. 130
"Reporting   Comprehensive   Income".   SFAS  130  requires  the   reporting  of
comprehensive  income in addition to net income from  operations.  Comprehensive
income  is a  more  inclusive  financial  reporting  methodology  that  includes
disclosure  of certain  financial  information  that  historically  has not been
recognized in the calculation of net income.

     Stock-Based Compensation

     In October 1995, SFAS No. 123,  "Accounting  for Stock-Based  Compensation"
was issued.  SFAS 123  prescribes  accounting  and  reporting  standards for all
stock-based  compensation  plans,  including employee stock options,  restricted
stock,  employee stock purchase plans and stock  appreciation  rights.  SFAS 123
requires compensation expense to be recorded (i) using the new fair value method
or (ii) using the existing accounting rules prescribed by Accounting  Principles
Board Opinion No. 25,  "Accounting for Stock Issued to Employees"  ("APB25") and
related  interpretations  with  pro  forma  disclosure  of what net  income  and
earnings  per share would have been had the  Company  adopted the new fair value
method.  The  Company  intends  to  continue  to  account  for its  stock  based
compensation plans in accordance with the provisions of APB 25.

     Business Segment

     During the year ended June 30,  1999,  the  Company  adopted  SFAS No. 131,
"Disclosures  About  Segments of an Enterprise and Related  Information",  which
supersedes  SFAS  No.  14,  "Financial  Reporting  for  Segments  of A  Business
Enterprise".  SFAS  No.  131  establishes  standards  for  the  way  the  public
enterprises  report  information  about operating  segments in annual  financial
statements  and  requires  reporting  of selected  information  about  operating
segments  in interim  financial  statements  regarding  products  and  services,
geographic areas and major customers. SFAS No. 131 defines operating segments as
components  of an  enterprise  about which  separate  financial  information  is
available that is evaluated  regularly by the chief operating  decision maker in
deciding how to allocate resources and in assessing performance. The Company has
determined  that under SFAS No. 131,  it  operates  in one segment of  financing
services. The Company's customers and operations are within the United States.


                                       8

<PAGE>


     Loan Sales and Servicing Fee Receivable

     SFAS No. 125,  "Accounting for Transfers and Servicing of Financial  Assets
and  Extinguishments  of Liabilities" was issued in June 1996. SFAS 125 provides
accounting  and  reporting  standards  for  transfers and servicing of financial
assets  and  extinguishments  of  liabilities.   This  statement  also  provides
consistent  standards for distinguishing  transfers of financial assets that are
sales from transfers that are secured  borrowings.  It requires that liabilities
and  derivatives  incurred or obtained by  transferors  as part of a transfer of
finanical  assets be initially  measured at fair value.  SFAS 125 also  requires
that servicing  assets be measured by allocating the carrying amount between the
assets sold and retained  interest  based on their  relative  fair values at the
date of transfer.  Additionally,  this  statement  requires  that the  servicing
assets  and  liabilities  be  subsequently   measured  by  (a)  amortization  in
proportion to and over the period of estimated net servicing  income or loss and
(b) assessment for asset impairment or increased  obligation based on their fair
values. SFAS 125 also requires the Company's excess servicing rights be measured
at fair market value and reclassified as interest only receivables and accounted
for in accordance with SFAS No. 115, "Accounting for Certain Investments in Debt
and Equity Securities".  As required by SFAS 125, the Company adopted in the new
requirements effective January 1, 1997.  Implementation of SFAS 125 did not have
any material impact on the financial statements of the Company.

     New Accounting Pronouncements

     In April 1998, Statement of Position ("SOP") 98-5,  "Reporting on the Costs
of Start-Up  Activities" was issued. This SOP provides guidance on the financial
reporting of start-up  costs and  organization  costs.  It requires the costs of
start-up  activities and organization costs to be expensed as incurred.  The SOP
is effective for financial  statements for fiscal year beginning  after December
15,  1998.  The Company  does not expect that the  adoption of SOP No. 98-5 will
have a material impact on its financial statements.

     In June 1998,  SFAS No. 133,  "Accounting  for Derivative  Instruments  and
Hedging  Activities" was issued and is required to be adopted in years beginning
after June 15, 1999,  which has been deferred to June 30, 2000.  Management does
not  anticipate  that the adoption of the new statement  will have a significant
effect on results of operations or the financial position of the Company.


                                        9

<PAGE>


NOTE 2 -- Debentures Payable to SBA

     At  December  31,  2000 and June 30,  2000  debentures  payable  to the SBA
consist of  subordinated  debentures  with  interest  payable  semiannually,  as
follows:

                                                 Current
                                               Effective             Principal
     Issue Date             Due Date          Interest Rate           Amount
     ----------             --------          -------------           ------
September 1993            September 2003          6.12              $1,500,000
September 1993            September 2003          6.12               2,220,000
September 1994            September 2004          8.20               2,690,000
December 1995             December 2005           6.54               1,020,000
June 1996                 June 2006               7.71               1,020,000
March 1997                March 2007              7.38(1)              430,000
                                                                    ----------

                                                                    $8,880,000
                                                                    ==========

----------
(1)  The Company is also required to pay an additional  annual user fee of 1% on
     this debenture


     Under  the  terms  of the  subordinated  debentures,  the  Company  may not
repurchase or retire any of its capital stock or make any  distributions  to its
stockholders  other than  dividends  out of retained  earnings  (as  computed in
accordance with SBA regulations) without the prior written approval of the SBA.

NOTE 3 -- Notes Payable to Banks

     At December  31, 2000 and June 30,  2000,  the Company had loan  agreements
with  three  (3)  banks  for  lines  of  credit   aggregating   $40,000,000  and
$40,000,000,  respectively.  At December 31, 2000 and June 30, 2000, the Company
had $37,000,000 and $37,800,000,  respectively,  outstanding  under these lines.
The  loans,  which  mature  through  January  2001  bear  interest  based on the
Company's choice of the lower of either the reserve adjusted LIBOR rate plus 150
basis  points or the bank's  prime rates  including  certain fees which make the
effective rates  approximately  prime minus 1 1/4%.  Upon maturity,  the Company
anticipates  extending  the lines of credit for  another  year,  as has been the
practice in previous years.

     Pursuant to the terms of the  agreements  the Company is required to comply
with certain  terms,  covenants and  conditions.  The Company  pledged its loans
receivable and other assets as collateral for the above lines of credit.

NOTE 4 -- Preferred Stock

     Pursuant to a preferred stock repurchase agreement dated November 10, 1994,
the Company  repurchased  all cumulative  preferred stock from the SBA for $3.50
per  share,  or  an  aggregate  $1,915,449.  As a  condition  precedent  to  the
repurchase,  the  Company  granted  the SBA a  liquidating  interest  in a newly
established  restricted capital surplus account. The surplus account is equal to
the amount of the net repurchase discount.  The initial value of the liquidating
interest  was  $3,557,261,  which  was  amortized  over a  60-month  period on a
straight-  line  basis.  Should the Company be in default  under the  repurchase
agreement at any time, the  liquidating  interest will become fixed at the level
immediately  preceding  the event of default and will not decline  further until
such time as the  default is cured or waived.  The  liquidating  interest  shall
expire on (i) sixty months from the date of the repurchase agreement, or (ii) if
any event of default  has  occurred  and such  default has been cured or waived,
such later date on which the liquidating interest is fully amortized. Should the
Company voluntarily or


                                       10

<PAGE>


involuntarily  liquidate prior to the amortization of the liquidating  interest,
any assets which are  available,  after the payment of all debts of the Company,
shall be distributed first to the SBA until the fair market value of such assets
is equal to the amount of the liquidating interest.  Such payment, if any, would
be prior in right to any payments made to the Company's stockholders. The amount
restricted under this agreement at December 31, 2000 and June 30, 2000 was $-0-.

NOTE 5 -- Common Stock

     Ameritrans has 5,000,000  authorized  common shares,  $0.0001 par value, of
which 1,745,600 shares are issued and outstanding. Ameritrans also has 1,000,000
shares  of  "blank  check"  preferred  stock,  none  of  which  are  issued  and
outstanding.

     On January  10,  2001,  the Company  declared a cash  dividend of $0.19 per
common share, for a total of $331,664, which was paid on January 31, 2001.


NOTE 6 -- Income Taxes

     The provision for income taxes for the periods ended  December 31, 2000 and
June 30, 2000, consists of the following:

                                           December 31, 2000      June 30, 2000
                                           -----------------      -------------

Federal                                           $2,562              $   986
State and city                                     4,878               12,585
                                                --------             --------

                                                  $7,440              $13,571
                                                ========             ========


The above provision represents income taxes incurred on undistributed income for
the respective years.


NOTE 7 -- Commitments and Contingencies

     Interest Rate Swap

     On June 8, 1998, the Company entered into a $10,000,000  interest rate Swap
transaction  with a bank  expiring  on June 8, 2001.  On October 13,  1999,  the
Company entered into an additional  interest rate swap transaction with the same
bank for  $5,000,000  expiring  on October 8, 2001.  On January  12,  2000,  the
Company entered into another interest rate swap transaction for $10,000,000 with
this bank expiring January 8, 2001. These Swap transactions were entered into to
protect  the Company  from an upward  movement  in  interest  rates  relating to
outstanding bank debt. These Swap  transactions  call for a fixed rate of 5.86%,
4.95% and 6.57%  (plus 150 basis  points for each  swap),  respectively  for the
Company  and if the  floating  one month LIBOR rate is below the fixed rate then
the Company is obligated to pay the bank for the  difference in rates.  When the
one-month  LIBOR rate is above the fixed rate then the bank is  obligated to pay
the Company for the differences in rates.


                                       11

<PAGE>


     Loan commitments

     At December 31, 2000 and June 30, 2000, the Company had commitments to make
loans  totaling  approximately  $1,290,500  and  $2,070,000,  at interest  rates
ranging from 8.25% to 18%.

NOTE 8 -- Fair Value of Financial Instruments

     The following disclosures represent the Company's best estimate of the fair
value  of  financial   instruments,   determined  on  a  basis  consistent  with
requirements  of Statement of Financial  Accounting  Standards,  "SFAS" No. 107,
"Disclosure about Fair Value of Financial Instruments".

     The  estimated  fair  values of the  Company's  financial  instruments  are
derived  using  estimation   techniques  based  on  various  subjective  factors
including  discount  rates.  Such estimates may not necessarily be indicative of
the net  realizable  or  liquidation  values of these  instruments.  Fair values
typically  fluctuate  in  response  to changes  in market or credit  conditions.
Additionally,  valuations  are presented as of a specific  point in time and may
not be relevant in relation to the future  earnings  potential  of the  Company.
Accordingly,  the estimates  presented herein are not necessarily  indicative of
the amounts the Company will realize in a current  market  exchange.  The use of
different market assumptions and/or estimation methodologies may have a material
effect on the estimated fair value amounts.

     Loans Receivable -- The fair value of loans is estimated at cost net of the
allowance  for loan losses.  The Company  believes that the rates of these loans
approximate current market rates.

     Equity  Securities  -- The Company's  equity  securities as of December 31,
2000 consist of investments in corporations  who own and operate Chicago Taxicab
Medallions  (11%),  a dry  cleaner  (2%),  Miami  Taxicab  Medallions  (26%),  a
telecommunications company (57%) and a biotech research company (4%).

     Debentures  Payable to Small Business  Administration  -- The fair value of
debentures  as of  December  31,  2000  and  June  30,  2000  was  approximately
$9,320,869 and $9,941,000,  respectively,  and were estimated by discounting the
expected  future cash flows using the current rate at which the SBA has extended
similar debentures to the Company.

     The fair value of  financial  instruments  that are  short-term  or reprice
frequently  and have a history of  negligible  credit  losses is  considered  to
approximate their carrying value. Those instruments include balances recorded in
the following captions:

                ASSETS                                    LIABILITIES

     Cash                                           Notes payable,  banks
     Accrued interest receivable                    Accrued interest payable
     Assets  acquired in  satisfaction  of loans
     receivables  from debtors on sales of
     assets acquired in satisfaction of loans


                                       12

<PAGE>


NOTE 9 -- Subsequent Event

     On January 31, 2001, the company terminated an Agreement and Plan of Merger
with Medallion Financial Corporation ("Medallion"). This termination will result
in a charge of approximately $425,000 in the quarter ended March 31, 2001.



                                       13

<PAGE>


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

The information contained in this section should be used in conjunction with the
Consolidated Financial Statements and Notes therewith appearing in this report
Form 10Q and the Company's Annual Report on Forms 10 KSB for the year ended June
30, 2000.

General

Ameritrans acquired Elk on December 16, 1999 in a share-for-share exchange. As
of December 31, 2000 Ameritrans had no separate operations. Elk is licensed by
the Small Business Administration (SBA) to operate as a Small Business
Investment Company (SBIC) under the Small Business Investment Act of 1958, as
amended. The Company has also registered as an investment company under the
Investment Company Act of 1940.

The Company primarily makes loans and investments to persons who qualify under
SBA Regulations as socially or economically disadvantaged and loans and
investments to entities which are at least 50% owned by such persons. The
Company also makes loans and investments to persons who qualify under SBA
regulations as "non-disadvantaged". The Company's primary lending activity is to
originate and service loans collateralized by New York City, Boston, Chicago,
and Miami Taxicab Medallions. The Company also makes loans and investments in
other diversified businesses.

Results of Operations
For the Six Months Ended December 31, 2000 and 1999

Total Investment Income

The Company's investment income for the six months ended December 31, 2000,
decreased to $3,234,668 from $3,274,408, or 1.2% as compared with the six months
ended December 31, 1999. This decrease was mainly due to leveling of the
portfolio as a result of the potential Medallion Transaction.  The portfolio was
$58,029,360 at December 31, 1999 vs $56,159,543 at December 31, 2000. The gain
on sale of equity securities for the six months ended December 31, 2000 was
$12,130 as compared to $76,169 for the similar period ended December 31, 1999.

Operating Expenses

Interest expenses for the six month period ended December 31, 2000 increased
$198,723 to $1,744,770 when compared with the six months ended December 31,
1999. This increase was due to higher borrowings in the period combined with
higher interest rates paid during the period. Other operating expenses decreased
$92,615 mainly due to lower legal fees incurred in Chicago due to a decrease in
new loan activity. Bad debt expenses for the six month period ended December 31,
2000 was $194,298 vs $81,050 in the similar period ended December 31, 1999.

In the six month period ended December 31, 1999 the Company incurred $345,941
of recapitalization costs, which was a one time nonrecurring charge.


                                       14
<PAGE>


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

Results of Operations
For the Three Months ended December 31, 2000 and 1999

Total Investment Income

The Company's investment income for the three months ended December 31, 2000
decreased to $1,610,340 from $1,755,577 or by $145,237 or (8.3%) for the three
month period ended December 31, 2000 and December 31, 1999. This decrease was
mainly due to a decrease in other fees ($70,702) and decrease in gains on sale
of equity securities ($64,039) during the three month period, which reflects a
slow down of new investments in the Chicago Medallion Market.

Operating Expenses

Interest expense for the three month period ended December 31, 2000 decreased
$36,592 ($782,271 from $818,863) over the similar period ended December 31,
1999. This decrease was mainly due to decreased bank borrowings as compared with
the prior period.

Other operating expenses decreased $18,592 when compared with the similar three
month period ended December 31, 1999. This decrease was mainly due to a decrease
in non-related legal fees incurred consistent with the decrease of new
investments in the Chicago Medallion Market, as discussed above. In addition,
bad debts decreased $81,050 when compared with the similar period.

In the three month period ended December 31, 1999 the Company incurred $345,941
of recapitalization costs, which was a one time nonrecurring charge.

Balance Sheet and Reserves

Total assets decreased $409,509 as of December 31, 2000 when compared with total
assets as of June 30, 2000. This decrease was due to management's decision to
maintain the portfolio at its current level in anticipation of the Medallion
Transaction. Bank debt during the period was reduced by $800,000.

On January 31, 2001 the Company terminated the Agreement and Plan of Merger with
Medallion Financial Corp. The termination will result in a charge of
approximately $425,000 in the quarter ended March 31, 2001.


PART II. OTHER INFORMATION

ITEM 5 -- Other Information

     On January 31, 2001 the proposed  Agreement and Plan of Merger (the "Merger
Agreement") between the Company, and Medallion Financial Corp. was terminated by
the Company  because the parties were unable to reach mutually  agreeable  terms
for an extension of the closing date.

ITEM 6 -- Exhibits and Reports on Form 8-K

     (a)  Exhibits.

          10.1 Promissory  Note dated  December 15, 2000 between the Company and
               Bank Leumi USA and letter of extension between the aforementioned
               parties.


     (b)  Reports on Form 8-K.

     On  November  16,  2000 the  Company  filed a  current  report  on Form 8-K
reporting  under Item V (Other  Events) that on October 31, 2000 Amendment No. 9
to the Merger  Agreement was executed,  pursuant to which the parties agreed (i)
that the average closing sale price per share of Medallion's common stock on the
NASDAQ  Market  during  the  Determination  Period  (as  defined  in the  Merger
Agreement)  at which either  party shall have the right to terminate  the Merger
Agreement  shall be  reduced  from  $15.00 to $14.00  per  share;  (ii) that the
purchase  price (i.e.,  number of Medallion  shares) to be paid to the Company's
shareholders if the average price per share of Medallion common stock during the
Determination  Period is  between  $14.00  and  $14.99  shall be  calculated  by
dividing  $8.01 by such average  closing  price of the  Medallion  common stock;
(iii) to the modification of certain  representations by the Company;  (iv) that
the date by which Medallion shall have obtained either approval of the Company's
lenders to the merger or shall have obtained financing  satisfactory to it shall
be extended  from  November 1, 2000,  to November 30, 2000;  and (v) the date by
which the merger must be completed  shall be extended from December 31, 2000, to
January 31, 2001, unless the only condition  remaining to be satisfied under the
Agreement is obtaining SBA approval,  in which event, such outside date shall be
February 23, 2001.  The Company also  reported that it was in  discussions  with
Medallion  regarding a further  extension of the date by which  Medallion  shall
have  obtained  either  the  consent  of  the  Company's  lenders  or  financing
satisfactory to Medallion.

     On  November  29,  2000 the  Company  filed a  current  report  on Form 8-K
reporting under Item V (Other Events) that on November 29, 2000 Amendment No. 10
to the Merger Agreement was executed, pursuant to which the parties agreed to an
extension of the date by which  Medallion shall have obtained either the consent
of  Ameritrans'  lenders  to  the  Merger  Agreement  or  comparable   financing
satisfactory to Medallion to January 23, 2001.

     On February 6, 2001,  subsequent to the period covered by this report,  the
Company filed a current report on Form 8-K reporting under Item V (Other Events)
that the Company  issued a press  release  announcing  that the proposed  Merger
Agreement by and between the Company,  Medallion Financial Corp. and AMTC Merger
Corp. was terminated.



                                       15

<PAGE>


                         AMERITRANS CAPITAL CORPORATION

                                   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.

                                 AMERITRANS CAPITAL CORPORATION

Date: February 14, 2001            By:      /s/ Gary C. Granoff
                                            -------------------
                                            Gary C. Granoff
                                            Chief Financial Officer
                                            (Principal Financial Officer and
                                            Chief Accounting Officer)


                                       16