SECURITIES AND EXCHANGE COMMISSION

                             Washington, D.C. 20549

                                   ----------

                                    FORM 10-Q

[X]  Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange
     Act of 1934 For the Quarterly Period Ended December 31, 2001

                                       or

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

                         Commission File Number 0-22153

                                   ----------

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

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

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

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

Indicate by check mark whether the Registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the  preceding 12 months (or for such  shorter  period that the  Registrant  was
required  to file  such  reports),  and  (2) has  been  subject  to such  filing
requirements for the past 90 days.

                             Yes [X]           No [  ]

        The number of shares of Common Stock, par value $.0001 per share,
                 outstanding as of February 13, 2002: 1,745,600

<PAGE>


                         AMERITRANS CAPITAL CORPORATION

                                   FORM 10-Q

                                Table of Contents


PART I. FINANCIAL INFORMATION
Item 1. Consolidated Financial Statements
           Consolidated  Balance  Sheets as of December 31, 2001
             (unaudited) and June 30, 2001 .................................  1
           Consolidated  Statements of Operations -- For the Three Months
             and Six Months Ended December 31, 2001 and 2000 (unaudited) ...  3
           Consolidated  Statements of Cash Flows -- For the Six
             Months Ended December 31, 2001 and 2000 (unaudited) ...........  4
           Notes to Consolidated Financial Statements ......................  6
Item 2.  Management's Discussion and Analysis of Financial
           Condition and Results of Operations .............................  10

PART II. OTHER INFORMATION

Item 4.  Submission of Matters to a Vote of Security Holders ...............  11

Item 5.  Other Information .................................................  11

Item 6.  Exhibits and Reports on Form 8-K ..................................  11

         Signatures ........................................................  12


                                      -ii-
<PAGE>


                 AMERITRANS CAPITAL CORPORATION AND SUBSIDIARIES
                           CONSOLIDATED BALANCE SHEETS

                 December 31, 2001 (Unaudited) and June 30, 2001

                                     ASSETS


<TABLE>
<CAPTION>
                                                         December 31, 2001      June 30, 2001
                                                         ------------------     -------------
<S>                                                         <C>                 <C>
Loans receivable ...................................        $ 55,653,678        $ 54,559,970
Less: unrealized depreciation on loans receivable ..            (318,500)           (318,500)
                                                            ------------        ------------

                                                              55,335,178          54,241,470
Cash and cash equivalents ..........................             398,492             575,229
Accrued interest receivable ........................           1,225,529             985,334
Assets acquired in satisfaction of loans ...........           1,000,751             932,814
Receivables from debtors on sales of assets acquired
    in satisfaction of loans .......................             367,271             421,823
Equity securities ..................................             486,939             436,914
Furniture, fixtures and leasehold improvements, net               95,463             101,902
Prepaid expenses and other assets ..................             573,413             289,383
                                                            ------------        ------------

                    TOTAL ASSETS ...................        $ 59,483,036        $ 57,984,869
                                                            ============        ============
</TABLE>


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


                                      -1-
<PAGE>


                 AMERITRANS CAPITAL CORPORATION AND SUBSIDIARIES
                           CONSOLIDATED BALANCE SHEETS

                 December 31, 2001 (Unaudited) and June 30, 2001

                      LIABILITIES AND STOCKHOLDERS' EQUITY


<TABLE>
<CAPTION>
                                                                 December 31, 2001   June 30, 2001
                                                                 ------------------  -------------
<S>                                                                 <C>                <C>
LIABILITIES
        Debentures payable to SBA ..........................        $ 8,880,000        $ 8,880,000
        Notes payable, banks ...............................         36,970,000         35,550,000
        Accrued expenses and other liabilities .............            383,762            456,316
        Accrued interest payable ...........................            268,833            291,427
                                                                    -----------        -----------

             TOTAL LIABILITIES .............................         46,502,595         45,177,743
                                                                    -----------        -----------

COMMITMENTS AND CONTINGENCIES
STOCKHOLDERS' 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 ................................           (505,278)          (678,593)
        Accumulated other comprehensive income .............             14,070             14,070
                                                                    -----------        -----------

             TOTAL STOCKHOLDERS' EQUITY ....................         12,980,441         12,807,126
                                                                    -----------        -----------

             TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY ....        $59,483,036        $57,984,869
                                                                    ===========        ===========
</TABLE>


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



                                      -2-
<PAGE>
                 AMERITRANS CAPITAL CORPORATION AND SUBSIDIARIES
                      CONSOLIDATED STATEMENTS OF OPERATIONS
                                   (Unaudited)

      For the Three Months and Six Months Ended December 31, 2001 and 2000

<TABLE>
<CAPTION>
                                                       Three Months Ended  Three Months Ended  Six Months Ended   Six Months Ended
                                                       December 31, 2001   December 31, 2000   December 31, 2001  December 31, 2000
                                                       -----------------   -----------------   -----------------  -----------------
<S>                                                       <C>                 <C>                 <C>                <C>
INVESTMENT INCOME
     Interest on loans receivable                         $1,420,029          $ 1,517,066         $2,899,659         $ 3,065,411
     Fees and other income                                    53,772               81,144             92,691             157,127
     Gain on sale of equity security                              --               12,130              6,782              12,130
                                                          ----------          -----------         ----------         -----------

       TOTAL INVESTMENT INCOME                             1,473,801            1,610,340          2,999,132           3,234,668
                                                          ----------          -----------         ----------         -----------

OPERATING EXPENSES
     Interest                                                631,643              824,650          1,372,578           1,744,770
     Salaries and employee benefits                          184,867              155,760            339,449             297,254
     Legal fees                                               52,468               41,746             98,555              80,037
     Miscellaneous administrative expenses                   224,257              227,434            425,144             453,604
     Loss on assets acquired in
       satisfaction of loans, net                             12,720               41,181             50,166              55,769
     Directors' fee                                            8,250                 (750)            12,700                (500)
     Depreciation in value of loans                           36,521                   --             54,843             194,298
                                                          ----------          -----------         ----------         -----------

TOTAL OPERATING EXPENSES                                   1,150,726            1,290,021          2,353,435           2,825,232
                                                          ----------          -----------         ----------         -----------
OPERATING INCOME                                             323,075              320,319            645,697             409,436
                                                          ----------          -----------         ----------         -----------
       INCOME BEFORE INCOME TAXES                            323,075              320,319            645,697             409,436
                                                          ----------          -----------         ----------         -----------
INCOME TAXES                                                      --                6,074              1,070               7,440
                                                          ----------          -----------         ----------         -----------
       NET INCOME                                         $  323,075          $   314,245         $  644,627         $   401,996
                                                          ----------          -----------         ----------         -----------

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

- Diluted                                                  1,745,600            1,745,600          1,745,600           1,745,600
                                                          ==========          ===========         ==========         ===========

NET INCOME PER COMMON SHARE
- Basic                                                   $   0.1851          $    0.1800         $   0.3693         $    0.2303
                                                          ==========          ===========         ==========         -----------

- Diluted                                                 $   0.1851          $    0.1800         $   0.3693         $    0.2303
                                                          ==========          ===========         ==========         ===========
</TABLE>

    The accompanying notes are an integral part of these financial statements


                                      -3-
<PAGE>

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

               For the Six Months Ended December 31, 2001 and 2000

<TABLE>
<CAPTION>
                                                                           December 31, 2001    December 31, 2000
                                                                           -----------------    -----------------
<S>                                                                           <C>                  <C>
CASH FLOWS FROM OPERATING ACTIVITIES
     Net income                                                               $   644,627          $ 401,996
                                                                              -----------          ---------

     Adjustments to reconcile net income to net cash
       provided by operating activities:
       Depreciation and amortization                                               16,574             18,891
     Change in operating assets and liabilities
       Accrued interest receivable                                               (240,195)            24,901
       Prepaid Expenses and other assets                                         (284,030)          (292,659)
       Accrued expenses and other liabilities                                     (72,557)            60,054
       Accrued Interest payable                                                   (22,594)           (71,559)
                                                                              -----------          ---------

         TOTAL ADJUSTMENTS                                                       (602,802)          (260,372)
                                                                              -----------          ---------

           NET CASH PROVIDED BY OPERATING ACTIVITIES                               41,825            141,624
                                                                              -----------          ---------

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                   (1,107,090)           828,000
       (Purchase) sales of equity securities                                      (50,025)            71,802
       Acquisition of furniture, fixtures and leasehold improvements              (10,135)            (2,947)
                                                                              -----------          ---------

           NET CASH (USED IN) PROVIDED BY INVESTING ACTIVITIES                 (1,167,250)           896,855
                                                                              -----------          ---------

CASH FLOWS FROM FINANCING ACTIVITIES
       Proceeds (repayments) from notes payable, banks, net                     1,420,000           (800,000)
       Dividends paid                                                            (471,312)                --
                                                                              -----------          ---------

           NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES                $   948,688          $(800,000)
                                                                              -----------          ---------
</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 Six Months Ended December 31, 2001 and 2000

<TABLE>
<CAPTION>
                                                                           December 31, 2001    December 31, 2000
                                                                           -----------------    -----------------
<S>                                                                           <C>                  <C>

       NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS                  $  (176,737)          $ 238,479
       CASH AND CASH EQUIVALENTS - Beginning                                     575,229             376,507
                                                                             -----------           ---------

       CASH AND CASH EQUIVALENTS - Ending                                    $   398,492           $ 614,986
                                                                             ===========           =========
</TABLE>

   The accompanying notes are an integral part of these financial statements



                                      -5-
<PAGE>

                 AMERITRANS CAPITAL CORPORATION AND SUBSIDIARIES
                          NOTES TO FINANCIAL STATEMENTS

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS


NOTE 1 -- Organization and Summary of Significant Accounting Policies

Financial Statements

     The   consolidated   balance  sheet  of  Ameritrans   Capital   Corporation
("Ameritrans" or the "Company") as of December 31, 2001, the related  statements
of  operations,  and cash flows for the six months  ended  December 31, 2001 and
December 31, 2000 included in Item 1 have been prepared by the Company,  without
audit,  pursuant  to  the  rules  and  regulations  of the  Commission.  Certain
information and footnote  disclosures  normally included in financial statements
prepared in accordance with generally accepted  accounting  principles have been
condensed or omitted pursuant to such rules and  regulations.  In the opinion of
management,  the  accompanying  consolidated  financial  statements  include all
adjustments (consisting of normal, recurring adjustments) necessary to summarize
fairly the Company's  financial position and results of operations.  The results
of  operations  for the six months ended  December 31, 2001 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,  2001 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.

     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").  Elk  Capital  may engage in similar  lending and
investment  activities.  Since inception,  Elk Capital has had no operations and
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 six  months  ended  December  31,  2001.  These
reclassifications have no effect on previously reported net income.

                                      -6-
<PAGE>


     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 2002, the Company intends to make the
required  distributions  to its  stockholders  in accordance with applicable tax
rules.

     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 during the period.  Common Stock
equivalents  have been excluded from the weighted  average  shares for the three
and six months ended  December 31, 2001 and 2000 as inclusion is  anti-dilutive.
At December 31, 2001 the Company had 127,780 options outstanding.

     Loans 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.  The unrealized  depreciation  has generally been caused by specific
events related to credit risk.

     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 fair value of financial instruments.

New Accounting Pronouncements

     The Financial  Accounting Standards Board ("FASB") has issued Statement No.
144,  "Accounting for the Impairment or Disposal of Long-Lived Assets" in August
2001.  Statement No. 144 changes the accounting for long-lived assets to be held
and used by  eliminating  the  requirement  to allocate  goodwill to  long-lived
assets to be tested for  impairment,  by providing a  probability  weighted cash
flow estimation approach to deal with situations in which alternative courses of
action to recover  the  carrying  amount of  possible  future  cash flows and by
establishing a  "primary-asset"  approach to determine the cash flow  estimation
period  for a group  of  assets  and  liabilities  that  represents  the unit of
accounting for long-lived assets to be held and used.  Statement No. 144 changes
the  accounting  for  long-lived  assets to be disposed of other than by sale by
requiring  that the  depreciable  life of a long-lived  asset to be abandoned be
revised to reflect a shortened  useful life and by requiring  that an impairment
loss to be recognized at the date a long-lived  asset is exchanged for a similar
productive  asset or distributed to owners in spin-off if the carrying amount of
the asset exceeds its fair value.  Statement No. 144 changes the  accounting for
long-lived  assets to be  disposed  of by sale by  requiring  that  discontinued
operations no longer be recognized on a net  realizable  value basis (but at the
lower of carrying  amount or fair value less costs to sell),  by eliminating the
recognition of future  operating losses of discontinued  components  before they
occur and by  broadening  the  presentation  of  discontinued  operations in the
income  statement to include a component of an entity rather than a segment of a
business.  A component of an entity comprises operations and cash flows that can
be clearly distinguished,  operationally,  and for financial reporting purposes,
from the rest of the entity.  The  effective  date for  Statement No. 144 is for
fiscal years beginning after December 15, 2001.

     The Company  expects that the adoption of the new statement will not have a
significant impact on its financial  statements.  It is not possible to quantify
the impact until the newly issued statement has been studied.


                                      -7-
<PAGE>


NOTE 2 -- Debentures Payable to SBA

     At  December  31,  2001 and June 30,  2001  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 December 31, 2001 and June 30, 2001 the Company had loan agreements with
three (3) banks for lines of credit  aggregating  $40,000,000.  At December  31,
2001  and  June  30,  2001,  the  Company  had   $36,970,000   and   $35,550,000
respectively,  outstanding  under these lines.  The loans,  which mature through
June 2002,  bear interest  based on the Company's  choice of the lower of either
the reserve  adjusted LIBOR rate plus 150 basis points or the banks' prime rates
including certain fees which make the effective rates  approximately prime minus
1 1/2% as of December 31, 2001. 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.


                                      -8-
<PAGE>

NOTE 4 -- Commitments and Contingencies

Interest Rate Swap

     In October 1998, the Company  entered into a $5,000,000  interest rate Swap
transaction with a bank expiring on October 8, 2001 and was not renewed. On June
11, 2001, the Company entered into an additional  interest rate Swap transaction
with the same bank for $10,000,000  expiring on June 11, 2002. On June 11, 2001,
the Company entered into another  interest rate Swap transaction for $15,000,000
with this bank expiring June 11, 2003. 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%, 4.35% and 4.95%, 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.  The effective fixed costs on the
outstanding  bank debt that was  swapped,  including  the 150 basis  points,  is
6.45%, 5.85% and 6.45%, respectively.

Loan Commitments

     At December 31, 2001 and June 30, 2001 the Company had  commitments to make
loans totaling approximately $1,789,924 and $547,000,  respectively, at interest
rates ranging from 8.25% to 18%.

Employment Agreements

     During November 2001, the Company entered into an employment agreement with
an  executive  effective  as of July 1, 2001,  whereby the  Company  would pay a
minimum  of  $240,000  plus a  discretionary  bonus and annual  increases.  This
employment  agreement  terminates  on July 1,  2006  but  will be  automatically
renewed  for an  additional  five (5) years  unless  either  the  Company or the
executive  gives notice of  non-renewal.  During November 2001, the Company also
entered  into a  consulting  agreement  with this  executive as of July 1, 2001,
whereby based on early termination of the employment agreement the Company would
pay a consulting  fee for the term of the  consulting  agreement of a minimum of
one-half of the executive's base salary in effect at the termination date of the
employment agreement.

     During  November 2001 and January 2002, the Company entered into employment
agreements  with  five  executives,  whereby  the  Company  would  pay a minimum
aggregate of $380,900 per annum plus a discretionary bonus and annual increases.
These  employment  agreements  terminate  through  January 1, 2007,  but will be
automatically renewed for an additional five (5) years unless either the Company
or the executives gives notice of non-renewal.

NOTE 5 -- Other Matters

     On December 21, 2001 the Company filed pre-effective amendment No. 2 to its
registration  statement  on Form N-2.  The  registration  statement  covers  the
proposed  sale of 325,000  units to the public,  which may be  increased  by the
underwriters by 48,750 units to cover over-allotments. Each unit consists of (i)
one share of common  stock;  (ii) one share of 9 3/8%  cumulative  participating
preferred  stock  (face  value  $12.00);   and  (iii)  one  redeemable   warrant
exercisable  into one  share of  common  stock at an  exercise  price of  $7.00,
subject to adjustment, until 2007. The units will be offered for sale at a price
between $18.00 and $20.00 per unit. The gross proceeds from the offering  should
be approximately $6,175,000. However there can be no assurance that the offering
will  be  completed.  Prepaid  offering  costs  as of  December  31,  2001  were
approximately $465,000 which is included in prepaid expenses and other assets.

Quarterly Dividend

     The Company's  Board of Directors  declared for the quarters ended June 30,
2001 and September 30, 2001 a total dividend of $471,312, or $0.27 per share, on
October 11, 2001 to stockholders  of record on October 22, 2001,  which was paid
October 30, 2001.

NOTE 6 -- Subsequent Events

Quarterly Dividend

     The Company's  Board of Directors  declared for the quarter ended  December
31,  2001 a dividend  of  $314,208,  or $0.18 per  share,  on January 9, 2002 to
stockholders of record on January 22, 2002, which was paid on January 30, 2002.

SBA Commitment

     During  January  2002 the  Company 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 the Company on or prior to  September  30,  2006. A 2% leverage fee
will be deducted pro rata as the commitment  proceeds are drawn down, of which a
$120,000 non-refundable fee has been paid by the Company.


                                      -9-


<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, 2001.

General

     Ameritrans acquired Elk on December 16, 1999 in a share-for share exchange.
As of December 31, 2001 Ameritrans had no separate  operations.  Elk is licensed
by the  Small  Business  Administration  (SBA) to  operate  as a Small  Business
Investment  Company (SBIC) under the Small  Business  Investment Act of 1958, as
amended.  The Company has also  registered  as an  investment  company under the
Investment Company Act of 1940.

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

Results of Operations For the Six Months Ended December 31, 2001 and 2000

Total Investment Income

     The Company's  investment income for the six months ended December 31, 2001
decreased to  $2,999,132  from  $3,234,668 or 7% as compared with the six months
ended  December  31,  2000.  This  decrease  was mainly due to  leveling  of the
portfolio due to the economic environment and the fact that the Company was more
than 90% drawn on its  available  bank credit  lines.  As a result,  the Company
began to  slowdown  expansion  in its Chicago  medallion  and  diversified  loan
portfolio.  Investment  income was also reduced because of lower interest rates.
The portfolio was  $55,653,678  at December 31, 2001 vs  $56,159,543 at December
31, 2000.

Operating Expenses

     Interest  expenses  for  the six  month  period  ended  December  31,  2001
decreased  $372,192  to  $1,372,578  when  compared  with the six  months  ended
December 31, 2000.  This decrease was due to lower interest rates charged during
the period. Other operating expenses increased $39,850 mainly due to increase in
payroll  costs during the current year.  Depreciation  in value of loans for the
six month period ended  December 31, 2000 was $194,298 vs $54,843 in the current
period ended December 31, 2001.

Results of Operations

For the Three Months ended December 31, 2001 and 2000

Total investment income

     The  Company's  investment  income for the three months ended  December 31,
2001  decreased to $1,473,801  from  $1,610,340 or 8% for the three month period
ended  December  31, 2000.  This  decrease was mainly due to a decrease in other
fees ($27,372)  combined with a decrease in the loan portfolio  during the three
month period, when compared with the prior year.

Operating Expenses

     Interest  expense  for the three  month  period  ended  December  31,  2001
decreased  $193,007  ($631,643  from  $824,650)  for the  similar  period  ended
December 31, 2000.  This decrease was mainly due to lower  interest rates on non
SBA debt.

     Other operating  expenses  increased $17,191 when compared with the similar
three month period ended  December 31, 2000.  This increase was mainly due to an
increase  in  payroll  costs  and  legal  fees.  Depreciation  in value of loans
increased $36,521 when compared with the similar period in the prior year.

Balance Sheet and Reserves

     Total assets  increased  $1,498,167  as of December 31, 2001 when  compared
with total assets as of June 30,  2001.  This  increase was due to  management's
decision to increase its loan portfolio in anticipation of the economic recovery
and anticipated  increase of SBA financing.  Non SBA bank borrowings  during the
period were increased by $1,420,000.

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


                                      -10-
<PAGE>


PART II. OTHER INFORMATION

Item 4.  Submission of Matters to a Vote of Security Holders.

On January  18,  2002,  subsequent  to the period  covered by this  report,  the
Company held its Annual  Meeting of  Shareholders.  At the meeting the following
matters were voted upon by the shareholders:

1. Gary C. Granoff,  Ellen M. Walker,  Lee A. Forlenza,  Marvin Sabesan,  Steven
Etra,  Paul  Creditor,  Allen  Kaplan,  John R. Laird and Howard F.  Sommer were
elected  directors  to serve  until the next  Annual  Meeting  and  until  their
successors are chosen and qualified.

The votes received by each are as follows:

                                  Votes For                     Votes Withheld
                                  ---------                     --------------
Gary C. Granoff                   1,404,328                           300
Ellen M. Walker                   1,404,328                           300
Lee A. Forlenza                   1,404,328                           300
Marvin Sabesan                    1,404,328                           300
Steven Etra                       1,404,328                           300
Paul Creditor                     1,404,328                           300
Allen Kaplan                      1,404,328                           300
John Laird                        1,404,328                           300
Howard Sommer                     1,404,328                           300

2. Marcum & Kliegman,  LLP was  approved as  the  Company's  independent  public
accountants for the fiscal year ended June 30, 2002.

          FOR           AGAINST          ABSTAIN
          ---           -------          -------
       1,401,428          3,200             0

3. The  shareholders  approved an amendment to the Company's 1999 Employee Stock
Option Plan, which increased the number of shares authorized under the plan.

          FOR           AGAINST          ABSTAIN              NOT VOTED
          ---           -------          -------              ---------
       1,228,809         31,352             0                  144,467

4. The  shareholders  approved an amendment to the Company's  1999  Non-Employee
Director  Stock Option Plan,  which  increased  the number of shares  authorized
under  the plan  and  established  automatic  grants  of  options  to  directors
re-elected to the board of directors. The amendment to the plan is still subject
to the approval of the Securities and Exchange Commission.

          FOR           AGAINST          ABSTAIN              NOT VOTED
          ---           -------          -------              ---------
       1,229,809         30,352             0                  144,467

5. Both a majority of the shareholders,  or 1,210,444 shares,  and a majority of
the  non-affiliate   shareholders,   or  493,246  shares,  approved  a  proposal
authorizing  the Company to sell shares of its Common  Stock at prices below the
stock's current net asset value.

The votes received by all shareholders were as follows:

          FOR           AGAINST          ABSTAIN              NOT VOTED
          ---           -------          -------              ---------
       1,210,444         49,717             0                  144,467

6. The  shareholders  approved  a  proposal  authorizing  the  Company  to issue
warrants convertible into shares of the Company's Common Stock.

          FOR           AGAINST          ABSTAIN              NOT VOTED
          ---           -------          -------              ---------
       1,241,392         14,269           4,500                144,467


Item 5.  Other Information

     On December 21, 2001 the Company filed pre-effective amendment No. 2 to its
registration  statement  on Form N-2.  The  registration  statement  covers  the
proposed  sale of 325,000  units to the public,  which may be  increased  by the
underwriters by 48,750 units to cover over-allotments. Each unit consists of (i)
one share of common  stock;  (ii) one share of 9 3/8%  cumulative  participating
preferred  stock  (face  value  $12.00);   and  (iii)  one  redeemable   warrant
exercisable  into one  share of  common  stock at an  exercise  price of  $7.00,
subject to adjustment, until 2007. The units will be offered for sale at a price
between $18.00 and $20.00 per unit.

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

     (a)  Exhibits

     10.1 Employment  agreement entered into between the Company, Elk Associates
          Funding Corporation and Silvia Mullens dated as of January 1, 2002.

     10.2 Employment  agreement entered into between the Company, Elk Associates
          Funding Corporation and Margaret Chance dated as of January 1, 2002.

     (b)  Reports on Form 8-K.

     On November 20, 2001 the Company  filed a current  report on 8-K  reporting
under Item V (Other  Events)  that the  Company  on or about  October  30,  2001
distributed to its shareholders the Company's privacy policy statement.





                                      -11-
<PAGE>


                         AMERITRANS CAPITAL CORPORATION

                                   SIGNATURES

     Pursuant to the  requirements  of the Securities  Exchange Act of 1934, the
Registrant  has duly  caused  this  report  to be  signed  on its  behalf by the
undersigned thereunto duly authorized.

                                 AMERITRANS CAPITAL CORPORATION

Date: February 14, 2002             By:   /s/ Gary C. Granoff
                                         -------------------
                                         Gary C. Granoff
                                         Chief Financial Officer
                                         (Principal Financial Officer and
                                         Chief Accounting Officer)




                                      -12-