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 March 31, 2003

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 May 14, 2003: 2,035,600

<PAGE>

                         AMERITRANS CAPITAL CORPORATION

                                    FORM 10-Q

                                Table of Contents
PART I. FINANCIAL INFORMATION
Item 1. Consolidated Financial Statements
           Consolidated  Balance  Sheets as of March 31, 2003
             (unaudited) and June 30, 2002 ...............................   1

           Consolidated Statements of Operations -- For the Three Months
             and Nine Months Ended March 31, 2003 and 2002 (unaudited) ...   3

           Consolidated  Statements of Cash Flows -- For the Nine
             Months Ended March 31, 2003 and 2002 (unaudited) ............   4

           Notes to Consolidated Financial Statements ....................   6

Item 2.  Management's Discussion and Analysis of Financial
           Condition and Results of Operations ...........................  13

Item 3.  Quantitative and Qualitative Disclosure about Market Risk .......  16

Item 4.  Controls and Procedures .........................................  16

Part II.  OTHER INFORMATION ..............................................  17

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

         Signatures ......................................................  17


                                      -ii-

<PAGE>

                 AMERITRANS CAPITAL CORPORATION AND SUBSIDIARIES

                           CONSOLIDATED BALANCE SHEETS

                  March 31, 2003 (Unaudited) and June 30, 2002

                                     ASSETS

                                             March 31, 2003    June 30, 2002
                                             --------------    -------------
Loans receivable                              $ 56,973,994      $ 55,029,831
Less: unrealized depreciation on
   loans receivable                               (238,500)         (238,500)
                                              ------------      ------------

                                                56,735,494        54,791,331
Cash and cash equivalents                          763,213           774,062
Accrued interest receivable, net of
   unrealized depreciation of $399,000
   and $206,272 respectively                     1,465,484         1,197,075
Assets acquired in satisfaction of loans           942,189         1,108,088
Receivables from debtors on sales of
   assets acquired in satisfaction of loans        431,258           367,271
Equity securities                                  964,563           443,327
Furniture, fixtures and leasehold
   improvements, net                               168,333           107,757
Prepaid expenses and other assets                  487,652           219,305
                                              ------------      ------------

        TOTAL ASSETS                          $ 61,958,186      $ 59,008,216
                                              ============      ============

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


                                       -1-
<PAGE>

                 AMERITRANS CAPITAL CORPORATION AND SUBSIDIARIES

                           CONSOLIDATED BALANCE SHEETS

                  March 31, 2003 (Unaudited) and June 30, 2002

                      LIABILITIES AND STOCKHOLDERS' EQUITY


                                              March 31, 2003   June 30, 2002
                                              --------------   -------------
LIABILITIES
   Debentures payable to SBA                  $  9,200,000      $  7,860,000
   Notes payable, banks                         35,780,000        33,720,000
   Accrued expenses and other liabilities          436,761           434,339
   Accrued interest payable                        127,229           258,358
   Dividends payable                                84,375            68,438
                                              ------------      ------------

        TOTAL LIABILITIES                       45,628,365        42,341,135
                                              ------------      ------------
COMMITMENTS AND CONTINGENCIES
STOCKHOLDERS' EQUITY
   Preferred stock 500,000 shares authorized,
      none issued or outstanding                        --                --
   9 3/8% Cumulative participating
      preferred stock $.01 par value,
      $12.00 face value, 500,000 shares
      authorized; 300,000 shares issued
      and outstanding                            3,600,000         3,600,000
   Common stock, $.0001 par value:
      5,000,000 shares authorized;
      2,045,600 shares issued and
      2,035,600 shares outstanding,                    205               205
   Additional paid-in-capital                   13,869,545        13,869,545
   Accumulated deficit                          (1,040,387)         (703,127)
   Accumulated other comprehensive loss            (29,542)          (29,542)
                                              ------------      ------------
        TOTAL STOCKHOLDERS' EQUITY              16,399,821        16,737,081
                                              ------------      ------------
   Treasury stock, at cost, 10,000
      shares common stock                          (70,000)          (70,000)
                                              ------------      ------------
        NET STOCKHOLDERS' EQUITY                16,329,821        16,667,081
                                              ------------      ------------
       TOTAL LIABILITIES AND
          STOCKHOLDERS' EQUITY                $ 61,958,186      $ 59,008,216
                                              ============      ============

   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 Nine Months Ended March 31, 2003 and 2002

<TABLE>
<CAPTION>
                                             Three Months Ended  Three Months Ended   Nine Months Ended   Nine Months Ended
                                                March 31, 2003      March 31, 2002     March 31, 2003      March 31, 2002
                                             ------------------  ------------------   -----------------   -----------------
<S>                                               <C>                 <C>               <C>                  <C>
INVESTMENT INCOME
     Interest on loans receivable                 $ 1,499,081         $1,533,452        $ 4,593,638          $4,433,111
     Fees and other income                             48,604            104,855            151,149             204,328
                                                  -----------         ----------        -----------          ----------

       TOTAL INVESTMENT INCOME                      1,547,685          1,638,307          4,744,787           4,637,439
                                                  -----------         ----------        -----------          ----------

OPERATING EXPENSES
     Interest                                         555,249            652,857          1,622,264           2,025,435
     Salaries and employee benefits                   220,055            215,292            654,103             554,741
     Legal fees                                        82,152             84,708            235,415             183,263
     Miscellaneous administrative expenses            331,886            281,296            954,472             706,440
     Loss on assets acquired in
       satisfaction of loans, net                      57,800             14,494             72,464              64,660
     Directors' fee                                    11,750              6,375             27,250              19,075
     Foreclosure expenses                             161,667                 --            281,838                  --
     Write off and depreciation of
        interest and loans receivable                 220,530            161,088            412,884             215,931
                                                  -----------         ----------        -----------          ----------

TOTAL OPERATING EXPENSES                            1,641,089          1,416,110          4,260,690           3,769,545
                                                  -----------         ----------        -----------          ----------
       (LOSS) INCOME BEFORE INCOME TAXES              (93,404)           222,197            484,097             867,894
                                                  -----------         ----------        -----------          ----------
INCOME TAXES                                            4,443              6,526             15,926               7,596
                                                  -----------         ----------        -----------          ----------
       NET (LOSS) INCOME                              (97,847)           215,671            468,171             860,298
                                                  -----------         ----------        -----------          ----------

DIVIDENDS ON PREFERRED STOCK                          (84,375)                --           (253,125)                 --
                                                  -----------         ----------        -----------          ----------
       NET (LOSS) INCOME AVAILABLE TO COMMON
          STOCKHOLDERS                            $  (182,222)        $  215,671        $   215,046          $  860,298
                                                  -----------         ----------        -----------          ----------

WEIGHTED AVERAGE SHARES OUTSTANDING
- Basic                                             2,035,600          1,745,600          2,035,600           1,745,600
                                                  ===========         ==========        ===========          ==========

- Diluted                                           2,035,600          1,745,600          2,035,600           1,745,600
                                                  ===========         ==========        ===========          ==========

NET (LOSS) INCOME PER COMMON SHARE
- Basic                                           $     (0.09)        $     0.12        $      0.11          $     0.49
                                                  ===========         ==========        ===========          ==========

- Diluted                                         $     (0.09)        $     0.12        $      0.11          $     0.49
                                                  ===========         ==========        ===========          ==========
</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 Nine Months Ended March 31, 2003 and 2002

<TABLE>
<CAPTION>
                                                    March 31, 2003   March 31, 2002
                                                    --------------   --------------
<S>                                                  <C>              <C>
CASH FLOWS FROM OPERATING ACTIVITIES
   Net income                                        $   468,171      $   860,298
                                                     -----------      -----------
   Adjustments to reconcile net
      income to net cash used in
      operating activities:
      Depreciation and amortization                       23,187           49,084
   Change in assets and liabilities
      Accrued interest receivable                       (268,409)        (351,845)
      Prepaid expenses and other assets                 (268,347)        (812,840)
      Accrued expenses and other liabilities               2,422          (82,558)
      Accrued interest payable                          (131,129)         (96,429)
                                                     -----------      -----------
        TOTAL ADJUSTMENTS                               (642,276)      (1,294,588)
                                                     -----------      -----------
          NET CASH USED IN
             OPERATING ACTIVITIES                       (174,105)        (434,290)
                                                     -----------      -----------
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                           (1,842,256)         704,063
   Purchase of equity securities                        (521,226)         (50,025)
   Acquisition of furniture, fixtures and
      leasehold improvements                             (83,763)         (20,960)
                                                     -----------      -----------
          NET CASH (USED IN) PROVIDED BY
             INVESTING ACTIVITIES                     (2,447,245)         633,078
                                                     -----------      -----------
CASH FLOWS FROM FINANCING ACTIVITIES
   Proceeds from notes payable, banks, net             2,060,000          750,000
   Proceeds from debentures payable, SBA               5,050,000               --
   Payments of debentures payable, SBA                (3,710,000)              --
   Dividends paid                                       (789,499)        (785,520)
                                                     -----------      -----------
          NET CASH PROVIDED BY (USED IN)
             FINANCING ACTIVITIES                      2,610,501          (35,520)
                                                     -----------      -----------
</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 Nine Months Ended March 31, 2003 and 2002

<TABLE>
<CAPTION>
                                            March 31, 2003   March 31, 2002
                                            --------------   --------------
<S>                                              <C>              <C>
NET (DECREASE) INCREASE IN CASH AND CASH
   EQUIVALENTS                                   (10,849)         163,268

CASH AND CASH EQUIVALENTS - Beginning            774,062          575,229
                                               ---------        ---------

CASH AND CASH EQUIVALENTS - Ending             $ 763,213        $ 738,497
                                               =========        =========
</TABLE>

                    Supplemental noncash financing activity:

During the nine months ended March 31, 2003, the Company accrued a preferred
stock cash dividend of $84,375 for the quarter ended March 31, 2003.

   The accompanying notes are an integral part of these financial statements


                                       -5-
<PAGE>

                 AMERITRANS CAPITAL CORPORATION AND SUBSIDIARIES

                   Notes to Consolidated Financial Statements

NOTE 1 -- Organization and Summary of Significant Accounting Policies

Financial Statements

The consolidated balance sheets of Ameritrans Capital Corporation ("Ameritrans"
or the "Company") as of March 31, 2003, the related statements of operations for
the three and nine months ended March 31, 2003 and 2002, and cash flows for the
nine months ended March 31, 2003 and 2002 included in Item 1 have been prepared
by the Company, without audit, pursuant to the rules and regulations of the
Securities and Exchange Commission (the "Commission" or the "SEC"). 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 nine months ended March 31, 2003 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 Company's Annual
Report on Form 10-K for the fiscal year ended June 30, 2002 as filed with the
Commission.

                  Organization and Principal Business Activity

Ameritrans, a Delaware corporation, acquired all of the outstanding shares of
Elk Associates 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 Chicago, New York City, Miami, and Boston markets. Ameritrans is also
registered as a Business Development Company under the Investment Company Act of
1940, and makes other loans and investments permitted under the applicable
statutes and SEC Regulations pertaining thereto. From inception through April
2002, Ameritrans' only activities have been the operation of Elk. In May 2002,
Ameritrans made its first loans to businesses using the proceeds raised from the
Company's public offering completed in April 2002.


                                       -6-
<PAGE>

                             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 or other assets acquired
in satisfaction of loans by Elk.

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

                                Reclassifications

Certain amounts in the prior financial statements have been reclassified for
comparative purposes to conform with the presentation in the financial
statements for the three and nine months ended March 31, 2003. These
reclassifications have no effect on previously reported net income.

                                  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 2003, the Company intends to make the
required distributions to its stockholders in accordance with applicable tax
rules.

                              Net Income Per Share

Statements of Financial Accounting Standards No. 128 "Earnings per Share" ("SFAS
No. 128") 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
earnings per share "EPS" is based on the weighted-average number of shares of
Common Stock and Common Stock equivalents outstanding during the period. Common
Stock equivalents have been excluded from the weighted average shares for the
three and nine months ended March 31, 2003 and 2002 as inclusion is anti-
dilutive. At March 31, 2003 the Company had 122,224 options and 300,000 warrants
outstanding.


                                       -7-
<PAGE>

                                 Loan Valuations

The Company's loans are recorded at fair value. Since no ready market exists for
those loans, the fair value is determined in good faith by the Board of
Directors. In determining the fair value, the Company and Board of Directors
consider factors such as the financial condition of the borrower, the adequacy
of the collateral, individual credit risks, historical loss experience and the
relationships between current and projected market rates and portfolio rates of
interest and maturities. To date, fair value of the loans has been determined to
approximate cost less unrealized depreciation and no loans have been recorded
above cost.

                  Use of Estimates in the Financial Statements

The preparation of financial statements in conformity with accounting principles
generally accepted in the United States of America 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 fair value of financial instruments.

SIGNIFICANT ACCOUNTING POLICIES

                          New Accounting Pronouncements

On December 31, 2002, the FASB issued SFAS No.148 ("SFAS 148"), "Accounting for
stock-Based Compensation-Transition and Disclosure". SFAS 148 amends SFAS No.
123 ("SFAS 123"), "Accounting for Stock -Based Compensation", to provide an
alternative method of transition to SFAS 123's fair value method of accounting
for stock-based employee compensation. SFAS 148 also amends the disclosure
provisions of SFAS 123 and APB opinion No. 28, "Interim Financial Reporting", to
require disclosure in the summary of significant accounting polices of the
effects of an entity's accounting policy with respect to stock-based employee
compensation on reported net income and earnings per share in annual and interim
financial statements. While the statement does not amend SFAS 123 to require
companies to account for employee stock options using the fair value method, the
disclosure provisions of SFAS 123 are applicable to all companies with
stock-based employee compensation, regardless of whether they account for that
compensation using the fair value method of SFAS 123, or the intrinsic value
method of APB opinion No. 25. The Company will continue to account for
stock-based compensation according to APB opinion No. 25. The adoption of SFAS
148 did not have an impact on net income or proforma net income applying the
fair value method as the Company did not have stock based compensation for the
nine months ended March 31, 2003 and 2002.


                                       -8-
<PAGE>

New Accounting Pronouncements - cont.

In November 2002, the FASB issued FASB Interpretation No.45, "Guarantor's
Accounting and Disclosure Requirements for Guarantees, including Indirect
Guarantees of Indebtedness of Others" ("FIN 45"). FIN 45 requires a company, at
the time it issues a guarantee, to recognize an initial liability for the fair
value of obligations assumed under the guarantee and elaborates on existing
disclosure requirements related to guarantees and warranties. The requirements
did not have a significant impact on the Company's Consolidated Financial
statements.

In January 2003, the FASB issued FASB Interpretation No. 46, "Consolidation of
Variable Interest Entities, an Interpretation of APB No. 51" ("FIN 46"). FIN 46
requires certain variable interest entities to be consolidated by the primary
beneficiary of the entity if the equity investors in the entity do not have the
characteristics of a controlling financial interest or do not have sufficient
equity at risk for the entity to finance its activities without additional
subordinated financial support from other parties. FIN 46 is effective for all
new variable interest entities created or acquired after January 31, 2003. The
provisions of FIN 46 must be applied for the first interim or annual period
beginning after June 15, 2003. The Company does not expect the adoption of FIN
46 to have a significant impact on its results of operations and financial
condition.

NOTE 2 -- Debentures Payable to SBA

At March 31, 2003 and June 30, 2002 debentures payable to the SBA consist of
subordinated debentures with interest payable semiannually, as follows:

<TABLE>
<CAPTION>

                                            Current         3/31/03           6/30/02
                                           Effective       Principal         Principal
  Issue Date            Due Date         Interest Rate       Amount            Amount
  ----------            --------         -------------       ------            ------
<S>                  <C>                    <C>            <C>               <C>
September 1993       September 2003         6.12(1)        $1,500,000        $1,500,000
September 1993       September 2003         6.12            2,220,000         2,220,000
September 1994       September 2004         8.20(4)                --         2,690,000
June 1996            June 2006              7.71(5)                --         1,020,000
March 1997           March 2007             7.38(2)           430,000           430,000
July 2002            September 2012         4.67(3)         2,050,000                --
December 2002        March 2013             4.63(3)(6)      3,000,000                --
                                                           ----------        ----------
                                                           $9,200,000        $7,860,000
                                                           ==========        ==========
</TABLE>

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

(2)   Elk is also required to pay an additional annual user fee of 1% on this
      debenture.

(3)   Elk is also required to pay an additional annual user fee of 0.87% on this
      debenture.

(4)   The loan was prepaid in full during September 2002.


                                       -9-
<PAGE>

NOTE 2 -- Debentures Payable to SBA - cont.

(5)   The loan was prepaid in full during December 2002.

(6)   The interim interest rate assigned for the interim period of December 5,
      2002 through March 26, 2003 was 1.927%. The fixed interest rate of 4.628%
      was determined by the SBA's pooling on March 26, 2003.

Under the terms of the subordinated debentures, Elk 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.

                                 SBA Commitment

During January 2002, Elk and the SBA entered into an agreement whereby the SBA
committed to reserve debentures in the amount of $12,000,000 to be issued by Elk
on or prior to September 30, 2006. A 2.5% leverage fee will be deducted pro rata
as the commitment proceeds are drawn down. A $120,000 non-refundable fee was
paid by Elk at the time of obtaining the $12,000,000 commitment.

During July 2002, a new debenture payable to SBA was drawn from the reserve pool
of $12,000,000 in the amount of $2,050,000 with an interim interest rate of
2.351%. The fixed rate of 4.67% was determined on the pooling date of September
25, 2002. In addition to the fixed rate, there is an additional annual SBA user
fee of 0.87% per annum that will also be charged making the rate 5.54% before
applicable amortization of points and fees.

During December 2002, another new debenture payable to SBA was drawn from the
reserve pool of $12,000,000 in the amount of $3,000,000 with an interim interest
rate of 1.927%. The fixed rate of 4.628% was determined on the pooling date of
March 26, 2003. In addition to the fixed interest rate, there is an additional
annual SBA user fee of 0.87% per annum that will also be charged making the rate
5.498% before applicable amortization of points and fees.

NOTE 3 -- Notes Payable to Banks

At March 31, 2003 and June 30, 2002, Elk had loan agreements with three (3)
banks for lines of credit aggregating $40,000,000. At March 31, 2003 and June
30, 2002, the Company had $35,780,000 and $33,720,000 respectively, outstanding
under these lines. The loans mature through November 2003. The loans bear
interest based on Elk's choice of the lower of either the reserve adjusted LIBOR
rate plus 150 basis points or the banks' prime rates minus 1/2% plus certain
fees. Upon maturity, Elk anticipates extending the lines of credit for another
year, as has been the practice in previous years. Pursuant to the terms of the
agreements, Elk is required to comply with certain terms, covenants and
conditions. Elk pledged its loans receivable and other assets as collateral for
the above lines of credit. Ameritrans also guaranteed and pledged its assets for
the Elk bank loans.


                                      -10-
<PAGE>

NOTE 4 -- Commitments and Contingencies

Interest Rate Swap

On June 11, 2001, Elk entered into an interest rate Swap transaction for
$15,000,000 with a bank expiring June 11, 2003. On February 11, 2003, Elk
purchased another interest rate Swap contract for $5,000,000 with the same bank
expiring February 11, 2005. These Swap transactions were entered into to protect
the Company from an upward movement in interest rates relating to outstanding
bank debt (see Note 3 for terms and effective interest rates). These Swap
transactions call for a fixed rate of 4.95% and 2.06%, respectively, (plus 150
basis points) for Elk and if the floating one month LIBOR rate is below the
fixed rate then Elk 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 Elk for the differences in rates. The effective fixed costs on the
outstanding bank debt that was Swapped, including the 150 basis points, is 6.45%
and 3.56%, respectively. The fair value of the derivative was not material at
March 31, 2003 and June 30, 2002.

Loan Commitments

At March 31, 2003 and June 30, 2002 the Company had commitments to make loans
totaling approximately $3,276,500 and $1,515,297, respectively, at interest
rates ranging from 6.0% to 17.5%. Approximately $1,015,500 of the March 31, 2003
commitment is comprised of the refinancing of existing loans in the outstanding
portfolio.

Employment Agreements

During November 2001, the Company entered into an employment agreement with an
executive effective as of July 1, 2001, which was subsequently amended by an
agreement dated December 31, 2002. The employment agreement provides for a
minimum base salary of $255,000, which increases to $296,500 as of July 1, 2003,
and thereafter increases yearly, plus an annual bonus. The employment agreement
terminates on July 1, 2008 but will be automatically renewed for five (5) years
unless either the Company or the executive gives notice of non-renewal. The
employment agreement also provides for confidentiality and for non-competition,
and non-solicitation during the term of the agreement and for one (1) year
thereafter.

During November 2001, the Company also entered into a consulting agreement dated
July 1, 2001 with the executive discussed above, which was subsequently amended
by an agreement dated December 31, 2002. The consulting agreement does not
become effective and does not commence unless and until the employment agreement
is terminated due to (i) the executive's voluntary resignation from the Company
or (ii) a notice of non-renewal of the employment


                                      -11-
<PAGE>

Employment Agreements - cont.

agreement from either the Company or the executive. Upon the effectiveness of
the consulting agreement the consultant shall be paid at a rate equal to 1/2 the
monthly salary in effect at the time the employment agreement is terminated plus
any bonus received for that employment year and other benefits. The agreement
also provides for confidentiality and non-competition for the term of the
agreement, and non-solicitation during the term of the agreement and for one (1)
year thereafter.

Additionally, during November 2001, the Company entered into employment
agreements with five (5) other executives. The Company subsequently amended two
of the employment agreements by agreements dated December 31, 2002. The two
amended employment agreements are for an initial term which expires on July 1,
2008 but which shall be automatically renewed for five (5) years unless either
the Company or the executive gives notice of non-renewal. The remaining three
employment agreements, two of which are dated January 1, 2002 and the third as
of October 1, 2001, are for terms of five (5) years but are also automatically
renewed for five (5) years unless either the Company or the executive gives
notice of non-renewal. The five employment agreements provide for minimum
salaries of, in the aggregate, $372,800 per annum, which increases to $415,000
per annum as of July 1, 2003, and thereafter increases yearly, plus annual
bonuses. The agreements provide for confidentiality and non-competition for the
term of the agreements, and non-solicitation during the term of the agreements
and for one (1) year thereafter.

NOTE 5 -- Other Matters

Quarterly Dividend

The Company's Board of Directors declared a dividend of $0.28125 per share, or
an aggregate of $84,375, on September 20, 2002 on the Company's 9 3/8%
cumulative participating redeemable Preferred Stock (the "Participating
Preferred Stock") for the period July 1, 2002 through September 30, 2002. The
dividend was paid on October 7, 2002 to all holders of the Participating
Preferred Stock of record as of September 30, 2002.

The Company's Board of Directors declared a dividend of $0.28125 per share, or
an aggregate of $84,375, on December 23, 2002 on the Company's Participating
Preferred Stock for the period October 1, 2002 through December 31, 2002. The
dividend was paid on January 28, 2003 to all holders of the Participating
Preferred Stock of record as of December 31, 2002.

The Company's Board of Directors declared a dividend of $0.28125 per share, or
an aggregate of $84,375, on March 21, 2003 on the Company's Participating
Preferred Stock for the period January 1, 2003 through March 31, 2003. The
dividend was paid on April 10, 2003 to all holders of the Participating
Preferred Stock of record as of March 31, 2003.


                                      -12-
<PAGE>

Quarterly Dividend - cont.

On September 26, 2002, the Company's Board of Directors declared a dividend of
$0.06 per share of Common Stock for the period April 1, 2002 through June 30,
2002, and a dividend based on estimated earnings for the period July 1, 2002
through September 30, 2002 of $0.11 per share of Common Stock for an aggregate
of $0.17 per share or $347,752. The dividend was paid on October 16, 2002 to
stockholders of record as of October 7, 2002.

On January 10, 2003, the Company's Board of Directors declared a dividend of
$0.10 per share of Common Stock, or an aggregate of $204,560, for the period
October 1, 2002 through December 31, 2002. The dividend was paid on January 28,
2003 to stockholders of record as of January 20, 2003.

The Company's Board of Directors did not declare a dividend on the Common Stock
for the period January 1, 2003 through March 31, 2003 in view of the Company's
reported loss for the quarter.

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, 2002.

General

Ameritrans acquired Elk on December 16, 1999 in a share-for share exchange. 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. Both Ameritrans and Elk are registered as an investment
company under the Investment Company Act of 1940. Both Ameritrans and Elk are
also registered as a Business Development 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. Elk also makes loans and
investments to persons who qualify under SBA regulations as non-disadvantaged.
Elk's primary lending activity is to originate and service loans collateralized
by Chicago, New York City, Boston, and Miami Taxicab Medallions. Elk also makes
loans and investments in other diversified businesses. At March 31, 2003, 75.75%
of Elk's portfolio was invested in loans secured by taxi medallions and 24.25%
of Elk's loans were to other diversified businesses.

From inception through April 2002, Ameritrans' only activities have been the
operations of Elk. In May 2002, Ameritrans made its first loans to businesses
using the proceeds raised from the Company's public offering completed in April
2002.


                                      -13-
<PAGE>

Results of Operations for the Nine Months Ended March 31, 2003 and 2002

Total Investment Income

The Company's investment income for the nine months ended March 31, 2003
increased $107,348 or 2.3% as compared with the nine months ended March 31,
2002. This increase was mainly due to the Backup Services Fee the Company
received ($22,500) as a result of executing an agreement with Medallion
Financial Corp and Merrill Lynch to be a standby backup loan servicing agent,
combined with income earned by Ameritrans ($99,772) on investments made from the
proceeds of the Company's public offering. As a back-up servicer, the Company
will earn an annual standby fee. If the agreement is activated by Merrill Lynch,
the Company will become the primary servicer which will create an additional
revenue source. There can be no assurances however that this agreement will be
activated by Merrill Lynch.

Operating Expenses

Operating expenses increased $286,388 for the nine month period ended March 31,
2003 when compared with the similar period ended March 31, 2002. This increase
was due to an increase in payroll costs of $99,362, legal fees of $52,152,
foreclosure expenses of $281,838 and other administrative expenses of $248,032,
offset by a decrease in interest costs of $403,171, which reflects lower
interest charged on the Company's bank debt combined with the refinancing of its
SBA debentures. The foreclosure expenses are incurred by the Company as it
satisfies outstanding balances incurred by the default borrowers on the
medallions with the City of Chicago so that the Company can repossess and resell
the medallions. Write off and depreciation of interest and loans receivable and
losses on assets acquired for the nine month period ended March 31, 2003
increased $204,757 when compared with the nine months ended March 31, 2002.

As a result of the losses sustained by the Company on foreclosure sales of
Chicago taxi medallions, the Company at June 30, 2002 instituted an accounting
policy that charged off all losses on the resale of each individual medallion
sold, as sales were completed, but maintained the Company's legal claims against
the borrowers and guarantors of the loans for the remaining amounts they owed to
the Company. The Company estimated it would recover ten percent (10%) of the
value of these legal claims through collection proceedings. The Company has
engaged counsel in Chicago to actively pursue these claims. The carrying value
of these amounts were $ 93,728 and $ 131,773 at June 30, 2002 and March 31,
2003, respectively, and are recorded as a miscellaneous receivable. The final
amount recorded at March 31, 2003 reflects a change in management's estimate of
the amount collectable to be eight percent (8%) of the value of the legal
claims, and further reflects a discount of the eight percent (8%) estimated to
be collectible by a present value factor of 5.25% (the Company's cost of funds)
over the estimated time period of collection which management expects to be
three (3) years. The Company intends to review these estimates from time to time
and to make appropriate adjustments based upon actual collection experience.

The increase in write off and depreciation of interest and loans receivable is
primarily due to the increase in Chicago loan portfolio delinquencies and
defaults, which is attributed to the economic slowdown and the effects of
September 11, 2001 on the Chicago taxi industry. Activities in connection with
the Chicago operations are as follows: a) $50,018 of charge off of principal due
to losses on 14 of the 28 completed Chicago medallion foreclosures that occurred
in the nine months ended March 31, 2003, b) $189,362 of accrued interest on the
completed Chicago medallion foreclosures was written off and, c) the Company did
not accrue an additional $40,817 of interest on certain foreclosed Chicago
medallion loans. In addition, the Company increased its unrealized depreciation
on interest receivable for potential losses on the remaining Chicago taxi
medallion loans that were in default by an additional net amount of $192,728 for
the nine months ended March 31, 2003. As mentioned above, the foreclosure
expenses incurred by the Company as it satisfies outstanding balances incurred
by the default borrowers on the medallions with the City of Chicago were
$281,838 for the nine months ended March 31, 2003. This expense primarily
consisted of back taxes, interest and penalties owed to the City of Chicago
Department of Revenue by defaulted medallion owners which was required to be
paid as a condition of completing the medallion foreclosures sales and transfer
to new purchasers.


                                      -14-
<PAGE>

Results of Operations

for the Three Months Ended March 31, 2003 and 2002

Total Investment Income

The Company's investment income for the three months ended March 31, 2003
decreased to $1,547,685 from $1,638,307, or 5.5%, when compared to the three
month period ended March 31, 2002. This is mainly due to income earned by
Ameritrans of $34,699 on investments made from the proceeds of the Company's
public offering completed in April 2002, offset by the rise in non-accrual in
Chicago loans.

Operating Expenses

Operating expenses increased $122,231 for the three month period ended March 31,
2003 when compared with the quarter ended March 31, 2002. This increase was due
primarily to an increase in foreclosure expenses of $161,667 and other
administrative expenses of $55,965, offset by a decrease in interest costs of
$97,608. Write off and depreciation of interest and loans receivable and losses
on assets acquired for the three month period ended March 31, 2003 increased
$102,748 when compared with the three months ended March 31, 2002.

Balance Sheet and Reserves

Total assets increased $2,949,970 as of March 31, 2003 when compared with total
assets as of June 30, 2002. This increase was partly due to cash generated by
Elk's successful sales to the SBA of debentures in the amount of $2,050,000 and
$3,000,000. Elk and the SBA entered into an agreement in January 2002 where the
SBA committed to reserve debentures in the amount of $12,000,000 to be issued by
Elk prior to September 30, 2006. In July 2002 a new debenture payable to the SBA
for $2,050,000 was drawn from the reserved pool of $12,000,000. In September
2002, Elk paid off a SBA debenture in the amount of $2,690,000 in order to
reduce costs. In December 2002, Elk paid off an additional SBA debenture in the
amount of $1,020,000 and also drew a new debenture in the amount of $3,000,000.
In addition, Elk drew down an additional $2,060,000 on its bank borrowings in
order to finance expansion. On a consolidated basis, the Company increased its
loans receivable by a net of $1,944,163 between June 30, 2002 and March 31,
2003. During this nine month period, the Company also increased its receivable
from debtors in satisfaction of loans by $63,987 and its equity investments by
$521,236.

Liquidity

At March 31, 2003, 80% of Elk's indebtedness was represented by indebtedness to
its banks and 20% by the debentures issued to the SBA with fixed interest rates
ranging from 4.63% to 7.38%


                                      -15-
<PAGE>

before annual user fees which range from 0.87% to 1% and before amortization of
points and fees. Elk currently may borrow up to $40,000,000 under its existing
lines of credit, subject to the limitations imposed by its borrowing base
agreement with its banks and the SBA, the statutory and regulatory limitations
imposed by the SBA and the availability of funds.

Our sources of liquidity are credit lines with banks, long-term SBA debentures
that are issued to or guaranteed by the SBA, loans receivable amortization and
prepayments. Prepayments on loans receivable are influenced significantly by
general interest rates, economic conditions and competition.

As a RIC, both Elk and Ameritrans distribute at least 90% of their investment
company taxable income. Consequently, we primarily rely upon external sources of
funds to finance growth. In order to provide the funds necessary for our
expansion strategy, we expect to raise additional capital and to incur, from
time to time, additional bank indebtedness and (if deemed necessary by
management) to obtain SBA loans. There can be no assurances that such additional
financing will be available on acceptable terms.

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURE ABOUT MARKET RISK

Pursuant to the general instructions to Rule 305 of Regulation S-K, the
qualitative and quantitative disclosures called for by this Item 3 and by Rule
305 of Regulation S-K are inapplicable to the Company at this time.

ITEM 4. CONTROLS AND PROCEDURES

(a) Evaluation of Disclosure Controls and Procedures

Based on their evaluation of our disclosure controls and procedures conducted
within 90 days of the date of filing this report on Form 10-Q, our Chief
Executive Officer and the Chief Financial Officer has concluded that our
disclosure controls and procedures (as defined in Rules 13a-14(c) and 15d-14(c)
promulgated under the Securities Exchange Act of 1934) are effective.

(b) Changes in Internal Controls

There were no significant changes in our internal controls or in other factors
that could significantly affect these controls subsequent to the date of their
evaluation.


                                      -16-
<PAGE>

                           PART II. OTHER INFORMATION

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

(a) Exhibits

10.1  Promissory Note dated March 3, 2003 between Elk and Bank Leumi and Letter
      Agreement dated March 11, 2003 between the aforementioned parties.

10.2  Letter Agreement renewing line of credit for Elk with IDB Bank dated April
      30, 2003.

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

(b) Reports on Form 8-K

There were no reports filed on Form 8-K for the period ending March 31, 2003.

                         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: May 15, 2003                         By: /s/ Gary C. Granoff
                                             ---------------------------------
                                               Gary C. Granoff
                                               Chief Financial Officer
                                              (Principal Financial Officer and
                                               Chief Accounting Officer)


                                      -17-
<PAGE>

                            CERTIFICATION PURSUANT TO

                             18 U.S.C. SECTION 1350,

                             AS ADOPTED PURSUANT TO

SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, Gary C. Granoff, President, Chief Executive Officer, and Chief Financial
Officer of Ameritrans Capital Corporation certify that:

1. I have reviewed this quarterly report on Form 10-Q for the Ameritrans Capital
Corporation;

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

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

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

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

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

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

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

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


                                      -18-
<PAGE>

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

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

/s/ Gary C. Granoff
-------------------
Gary C. Granoff
President, Chief Executive Officer, and Chief Financial Officer

                                  May 15, 2003


                                      -19-