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 September 30, 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 November 13, 2000: 1,745,600

<PAGE>


                         AMERITRANS CAPITAL CORPORATION

                                   FORM 10-Q

                                Table of Contents


PART I. FINANCIAL INFORMATION
Item 1. Financial Statements
         Report of Independent Accountants..................................   1
           Consolidated  Balance  Sheets as of September 30, 2000
             (unaudited) and June 30, 2000 .................................   2
           Consolidated  Statements of Operations -- For the Three Months
             Ended September 30, 2000 and 1999 (unaudited) .................   4
           Consolidated  Statements of Cash Flows -- For the Three
             Months Ended September 30, 2000 and 1999 (unaudited) ..........   5
           Notes to Consolidated Financial Statements ......................   7
Item 2.  Management's Discussion and Analysis of Financial
           Condition and Results of Operations .............................  15

PART II. OTHER INFORMATION

Item 6.  Exhibits and Reports on Form 8-K ..................................  17

         Signatures ........................................................  18


                                      -ii-
<PAGE>

                                     PART I

                              FINANCIAL INFORMATION

                        Report of Independent Accountants

To the Board of Directors and Stockholders of
Ameritrans Capital Corporation and Subsidiaries

We have  reviewed the  accompanying  consolidated  balance  sheet of  Ameritrans
Capital  Corporation and  Subsidiaries as of September 30, 2000, and the related
consolidated  statements  of income and cash flows for the three  month  periods
ended  September  30,  2000  and  1999.  These  financial   statements  are  the
responsibility of the Company's management.

We conducted our review in accordance with standards established by the American
Institute  of  Certified  Public  Accountants.  A review  of  interim  financial
information consists principally of applying analytical  procedures to financial
data and making  inquiries of persons  responsible  for financial and accounting
matters. It is substantially less in scope than an audit conducted in accordance
with  generally  accepted  auditing  standards,  the  objective  of which is the
expression  of an opinion  regarding the  financial  statements  taken as whole.
Accordingly, we do not express such an opinion.

Based on our review, we are not aware of any material  modifications that should
be made to the accompanying  consolidated  interim financial statements for them
to be in conformity with generally accepted accounting principles.

We previously audited in accordance with generally accepted auditing  standards,
the consolidated balance sheet as of June 30, 2000, and the related consolidated
statement of income,  comprehensive income,  stockholders' equity and cash flows
for the  year  then  ended  (not  presented  herein),  and in our  report  dated
September  7, 2000 we  expressed an  unqualified  opinion on those  consolidated
financial  statements.  In  our  opinion,  the  information  set  forth  in  the
accompanying consolidated balance sheet as of June 30, 2000, is fairly stated in
all material  respects in relation to the consolidated  balance sheet from which
it has been derived.

The consolidated  financial statements include loans valued at $57,061,533 as of
September 30, 2000,  whose values have been  estimated by the Board of Directors
in the absence of readily  ascertainable  market  values.  We have  reviewed the
procedures  used by the Board of Directors in arriving at their  estimate of the
value of such loans and have  inspected  underlying  documentation  and,  in the
circumstances, we believe the procedures are reasonable and the documentation is
appropriate.  However,  because of the inherent uncertainty of valuation,  those
estimated values may differ  significantly  from the values that would have been
used had a ready  market for such loans  existed,  and the  difference  could be
material.

New York, NY
November 9, 2000                                      /s/ Marcum & Kliegman, LLP




<PAGE>


                 AMERITRANS CAPITAL CORPORATION AND SUBSIDIARIES
                           CONSOLIDATED BALANCE SHEETS

                September 30, 2000 (Unaudited) and June 30, 2000

                                     ASSETS

<TABLE>
<CAPTION>
                                                         September 30, 2000       June 30, 2000
                                                         ------------------       -------------
<S>                                                         <C>                 <C>
Loans receivable ...................................        $ 57,633,533        $ 56,806,579
Less: allowance for loan losses ....................            (572,000)           (380,000)
                                                            ------------        ------------

                                                              57,061,533          56,426,579
Cash and cash equivalents ..........................             504,647             376,507
Accrued interest receivable ........................             796,487             928,765
Assets acquired in satisfaction of loans ...........             666,555             609,106
Receivables from debtors on sales of assets acquired
    in satisfaction of loans .......................             736,736             743,954
Equity securities ..................................             670,762             631,974
Furniture, fixtures and leasehold improvements, net              102,556             110,019
Prepaid expenses and other assets ..................             508,329             467,720
                                                            ------------        ------------

                    TOTAL ASSETS ...................        $ 61,047,605        $ 60,294,624
                                                            ============        ============
</TABLE>

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


                                       -2-

<PAGE>


                 AMERITRANS CAPITAL CORPORATION AND SUBSIDIARIES
                           CONSOLIDATED BALANCE SHEETS

                September 30, 2000 (Unaudited) and June 30, 2000

                      LIABILITIES AND STOCKHOLDERS' EQUITY


<TABLE>
<CAPTION>
                                                                 September 30, 2000  June 30, 2000
                                                                 ------------------  -------------
<S>                                                                 <C>                <C>
LIABILITIES
        Debentures payable to SBA ..........................        $ 8,880,000        $ 8,880,000
        Notes payable, banks ...............................         38,500,000         37,800,000
        Accrued expenses and other liabilities .............            405,697            365,328
        Accrued interest payable ...........................            290,131            365,270
                                                                    -----------        -----------

             TOTAL LIABILITIES .............................         48,075,828         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 ................................           (637,306)          (725,057)
        Accumulated other comprehensive income .............            137,434            137,434
                                                                    -----------        -----------

             TOTAL STOCKHOLDERS' EQUITY ....................         12,971,777         12,884,026
                                                                    -----------        -----------

             TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY ....        $61,047,605        $60,294,624
                                                                    ===========        ===========
</TABLE>

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


                                       -3-

<PAGE>


<TABLE>
<CAPTION>
                                           AMERITRANS CAPITAL CORPORATION AND SUBSIDIARIES
                                                CONSOLIDATED STATEMENTS OF OPERATIONS
                                                             (UNAUDITED)

                                        For the Three Months Ended September 30, 2000 and 1999


                                                Three Months Ended     Three Months Ended
                                                September 30, 2000     September 30, 1999
                                                ------------------     ------------------
<S>                                                <C>                     <C>
INVESTMENT  INCOME
  Interest on loans  receivable                    $1,548,345              $1,404,270
  Fees and other income                                75,983                 114,561
                                                  -----------             -----------

       TOTAL INVESTMENT INCOME                      1,624,328               1,518,831
                                                  -----------             -----------

OPERATING EXPENSES
     Interest                                         962,499                 727,184
     Salaries  and employee  benefits                 141,494                 145,009
     Legal fees                                        38,291                  94,968
     Miscellaneous  administrative expenses           183,066                 196,676
     Loss on assets acquired in
        satisfaction of loans, net                     14,588                      59
     Directors' fee                                       250                  15,000
     Bad debt expense                                 194,298                     --
                                                  -----------             -----------

TOTAL OPERATING EXPENSES                            1,534,486               1,178,896
                                                  -----------             -----------

OPERATING INCOME                                       89,842                 339,935

       NET INCOME BEFORE INCOME TAXES                  89,842                 339,935

INCOME TAXES                                            2,091                   3,211
                                                  -----------             -----------
       NET INCOME                                    $ 87,751                $336,724
                                                  ===========             ===========

WEIGHTED AVERAGE SHARES OUTSTANDING
       Basic                                        1,745,600               1,745,600
                                                  ===========             ===========
       Diluted                                      1,750,684               1,749,894
                                                  ===========             ===========
NET INCOME PER COMMON SHARE
       Basic                                           $.0503                  $.1929
                                                  ===========             ===========
       Diluted                                         $.0501                  $.1924
                                                  ===========             ===========
</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)

             For the Three Months Ended September 30, 2000 and 1999

<TABLE>
<CAPTION>
                                                                 September 30, 2000  September 30, 1999
                                                                 ------------------  ------------------
<S>                                                                   <C>               <C>
CASH FLOWS FROM OPERATING ACTIVITIES
    Net income                                                        $   87,751        $  336,724
                                                                     -----------       -----------

    Adjustments  to  reconcile  net  income to net cash
        provided  by  operating activities:
        Depreciation and amortization                                     15,541            10,990
        Increase in accrued interest receivable                          132,278           (68,424)
        Increase in prepaid expenses and other assets                    (46,722)         (195,547)
        Increase in accrued expenses and other liabilities                40,369            70,349
        Increase (decrease) in accrued interest payable                  (75,139)          (51,229)
                                                                     -----------       -----------

            TOTAL ADJUSTMENTS                                             66,327          (233,861)
                                                                     -----------       -----------

             NET CASH PROVIDED BY OPERATING ACTIVITIES                   154,078           102,863
                                                                     -----------       -----------

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        (685,185)       (2,606,780)
        Purchases (sales) of equity securities                           (38,788)          (30,000)
        Acquisition of furniture, fixtures and leasehold
            improvements                                                  (1,965)          (43,240)
                                                                     -----------       -----------

            NET CASH USED IN INVESTING ACTIVITIES                       (725,938)       (2,680,020)
                                                                     -----------       -----------

CASH FLOWS FROM FINANCING ACTIVITIES
        Proceeds from notes payable, banks, net                          700,000         2,350,000
        Dividends paid                                                                    (314,208)
                                                                     -----------       -----------

             NET CASH PROVIDED BY FINANCING ACTIVITIES                $  700,000        $2,035,792
                                                                     -----------       -----------
</TABLE>


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


                                       -5-

<PAGE>


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

             For the Three Months Ended September 30, 2000 and 1999

                                          September 30, 2000  September 30, 1999
                                          ------------------  ------------------

NET (DECREASE) IN CASH AND CASH EQUIVALENTS    $ 128,140         $  (541,365)
CASH AND CASH EQUIVALENTS - Beginning            376,507             542,290
                                             -----------         -----------

CASH AND CASH EQUIVALENTS - Ending              $504,647            $    925
                                             ===========         ===========


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


                                       -6-

<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 September 30, 2000, the related  statements of operations,  and
cash flows for the three months ended  September 30, 2000 and September 30, 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 three months ended  September  30, 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 Elk'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  September  30,  2000 and June 30,  2000
approximately  79% 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.


                                       7

<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 September 30, 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 2000, 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 September  30,
2000  and June 30,  2000 the  Company  has  133,336  options  outstanding  which
resulted in common stock equivalents of 5,084 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
September  30,  2000 and June 30,  2000,  loan costs  amounted  to  $98,762  and
$104,877,   respectively,  net  of  accumulated  amortization  of  $145,218  and
$139,105, respectively.

     Amortization  expense for the periods ended September 30, 2000 and June 30,
2000 was $6,114 and $24,455, respectively.


                                       8

<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.


                                       9

<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.


                                       10

<PAGE>


NOTE 2 -- Debentures Payable to SBA

     At  September  30,  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)           $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(2)              430,000
                                                                    ----------

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

----------
(1)  Interest rate was 3.12%from inception through September 1998

(2)  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 September  30, 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 September 30, 2000 and June 30, 2000, the Company
had $38,500,000 and $37,800,000,  respectively,  outstanding  under these lines.
The loans,  which mature through  November 30, 2000,  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.

     At  September  30, 2000 the Company is in  violation  of certain  covenants
related to this debt and is  currently  seeking a waiver from the bank.  At June
30,  2000 the  Company  received  a waiver  from  the  bank  regarding  the same
violation  and  anticpates  receiving  another  waiver in the near  future.  The
Company is in discussions  with the bank to update and modify those covenants to
avoid this problem in the future.

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 is being  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


                                       11

<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  September  30, 2000 and June 30, 2000 was
$-0-.

     During 1992,  Elk authorized the issuance of 752,729 shares of a new Series
B cumulative  preferred stock with a 4 percent dividend and a $10 par value. All
preferred shares are restricted  solely for issuance to the SBA. No sales of the
Series B preferred shares have occurred to date. On September 30, 1996, Congress
passed a law that in effect prevents the SBA from making any further purchase of
4% preferred stock from any specialized small business investment company.

     In September  1998, the  stockholders  of Elk approved and in February 1999
the SBA approved an  amendment  to the  Certification  of  Incorporation  of Elk
eliminating all of the authorized  Series A and Series B preferred stock of Elk.
This  amendment  to the  Certificate  of  Incorporation  was  filed  and  became
effective on May 21, 1999.

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 after the shares exchange with
Elk. Ameritrans also has 1,000,000 shares of "blank check" preferred stock, none
of which are issued and outstanding.

NOTE 6 -- Income Taxes

     The  provision for income taxes  (benefit) for the periods ended  September
30, 2000 and June 30, 2000, consists of the following:

                                           September 30, 2000      June 30, 2000
                                           ------------------      -------------

Federal                                           $  -0-              $   986
State and city                                     2,091               12,585
                                                --------             --------

                                                  $2,091              $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.


                                       12

<PAGE>


     Interest Rate Cap

     At March 20,  1997,  the  Company  was a party to one $5  million  notional
interest rate cap. This cap,  which expired on March 20, 1999,  was purchased by
the Company to protect it from the impact of upward  movements in interest rates
related to its outstanding bank debt. The cap provided  interest rate protection
in the event that the three-month LIBOR rate exceeded 6.75 percent.  The premium
paid for the purchase of this cap was amortized over its life and recorded as an
adjustment  to  interest  expense.  Payments  received  under  this cap would be
credited to interest expense.

     Loan commitments

     At September  30, 2000 and June 30, 2000,  the Company had  commitments  to
make loans totaling approximately  $1,113,000 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 September 30,
2000 consist of investments in corporations  who own and operate Chicago Taxicab
Medallions  (26%),  a dry  cleaner  (2%),  Miami  Taxicab  Medallions  (21%),  a
telecommunications company (47%) and a biotech research company (4%).

     Debentures  Payable to Small Business  Administration  -- The fair value of
debentures  as of  September  30,  2000  and June  30,  2000  was  approximately
$9,352,172 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


                                       13

<PAGE>


NOTE 9 -- Proposed Acquisition

     On May 4, 2000,  the company  executed an Agreement and Plan of Merger with
Medallion  Financial  Corporation  ("Medallion")  and  subsequently  has amended
certain terms and conditions,  pursuant to which the Company will merge into and
with  a   wholly-owned   subsidiary  of  Medallion  (the   "Transaction").   The
Transaction,  which is  structured  to qualify as a  "pooling-of-interests"  for
accounting  purposes,  is subject to the  approval  of the  shareholders  of the
Company, the approval of certain lenders or receipt of a financing commitment by
Medallion  which is  satisfactory  to them,  as well as the  receipt  of certain
approvals from the U.S. Small Business  Administration,  the U.S.  Department of
Justice and the Federal Trade Commission and other customary closing conditions.
Subject to the foregoing conditions, the Transaction is expected to close in the
first quarter of 2001.

                                       14

<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 10-Q and the Company's Annual Report on Form 10-K for the year ended
June 30, 2000.

General

     The Company is a holding  company whose  subsidiary  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.

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

Results of Operations For the Three Months ended September 30, 2000 and 1999

     Total Investment Income.

     The Company's  investment  income for the three months ended  September 30,
2000  increased to  $1,624,328  from  $1,518,831  or (6.9%) as compared with the
three month period ended  September 30, 1999. This increase was mainly due to an
increase in the loan portfolio.  The portfolio  increased from $53,719,005 as of
the September 30, 1999 to  $57,633,533  as of September 30, 2000, as part of the
Company's strategy to maximize shareholder rate of return by use of bank debt.


Operating Expenses

     Interest  expenses  for the three month  period  ended  September  30, 2000
increased  $235,315  ($962,499  vs.  $727,184)  over the  similar  period  ended
September 30, 1999.  This increase was mainly due to increased  bank  borrowings
for the  period  and was due to  higher  interest  rates  for the  period  ended
September 30, 2000.

     Other  operating  expenses for the three months  ended  September  30, 2000
decreased  $31,595 when compared with the three months ended September 30, 1999.
The decrease was mainly due to  decreased  legal fees during the period.  During
the three months ended  September 30, 2000,  the Company  added  $192,000 to its
allowance  for  loan  losses  which  reflects  its  growing  commitment  to  its
diversified loan portfolio over the past three years.

                                       16
<PAGE>

Balance Sheet and Reserves

     Total assets  increased by $752,981 as of September 30, 2000, when compared
with  the  balance  sheet  as of  June  30,  2000.  This  increase  was  due  to
management's  decision to expand its portfolio in the Chicago  Medallion Market,
together  with  increases  in the  diversified  loan  portfolio.  In  connection
therewith,  the  Company  increased  its  allowance  for loan losses by $192,000
during the three months ended September 30, 2000. This expansion was financed by
additional bank debt of $700,000 incurred in the three month period.

PART II. OTHER INFORMATION

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

     (a)  No exhibits are being filed.

     (b)  Reports on Form 8-K.

     On  September  25,  2000 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 it had (i) amended its quarterly  results to reflect a change in
accounting  treatment of holding company  restructuring costs, (ii) that it will
omit its fourth  quarter  dividend,  and (iii) that it adjusted its merger price
with Medallion Financial Corp.

     On  September  6,  2000 the  Company  filed a  current  report  on Form 8-K
reporting under Item V (Other Events) that the Company executed  Amendment No. 8
to the merger agreement by and between  Medallion  Financial Corp.,  AMTC Merger
Corp. and Ameritrans  Capital  Corporation which adjusted the pricing formula of
the merger transaction.


                                       17

<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: November 15, 2000            By:      /s/ Gary C. Granoff
                                            -------------------
                                            Gary C. Granoff
                                            Chief Financial Officer
                                            (Principal Financial Officer and
                                            Chief Accounting Officer)


                                       18