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

                                        FORM 10-QSB

 ( X )      Quarterly report pursuant to Section 13 or 15(d) of the Securities 
and Exchange Act of 1934.

                       For the quarterly period ended June 30, 1997.


 (    )     Transition report pursuant to Section 13 or 15(d) of the Exchange 
Act for thetransition period from ____________ to ____________ .



                             Commission File Number: 333-06328

                       Sterling Financial Services of Florida I, Inc.
                   (Exact Name of Registrant as Specified in Its Charter)

          Florida                                               65-0716464
(State of Incorporation)                               (I.R.S. Employer I.D. No)

                       239 Halliday Park Drive, Tampa, Florida 33612
                          (Address of Principal Executive Offices)


                                       (813) 932-2228
                    (Registrant's Telephone Number, Including Area Code)



Check whether the registrant:  (1) has filed all reports required to be filed by
Section 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 ( ) NO (X)

Indicate the number of shares  outstanding  of each of the  issuer's  classes of
stock as of April 21, 1999.

                                    1,000 Common Shares


Transitional Small Business Disclosure Format:

                                       YES ( ) NO (X)






<PAGE>


                       Sterling Financial Services of Florida I, Inc.
                               (A Development Stage Company)
                                    INDEX TO FORM 10-QSB


PART I.    FINANCIAL INFORMATION

Item 1.    Financial Statements (unaudited)

           Balance Sheets as of June 30, 1997 and January 10, 1997............3


           Statements of Operations for the Three Months Ended June 30,
           1997 and the Period January 3, 1997 (Inception) to June 30,        
           1997...............................................................4

           Statement of Stockholders' Deficit as of June 30, 1997.............5
         .................................................

           Statements of Cash Flows for the Three Months Ended June 30,
           1997 and the Period January 3, 1997 (Inception) to June 30,
           1997...............................................................6

           Notes to Financial Statements .....................................7

Item 2.    Management's Discussion and Analysis of Financial Condition and
           Results of Operations .............................................8


PART II.   OTHER INFORMATION

Item 1.    Legal Proceedings .................................................10
Item 2.    Changes in Securities .............................................10
Item 3.    Defaults Upon Senior Securities ...................................10
Item 4.    Submission of Matters to a Vote of Securities Holders..............10
Item 5.    Other Information..................................................10
Item 6.    Exhibits and Reports on Form 8-K...................................10

Signatures
















                                            -2-
<PAGE>

         STERLING FINANCIAL SERVICES OF FLORIDA I, INC.
                 (A Development Stage Company)
                         BALANCE SHEETS

-----------------------------------------------------------------


                                         June 30,        January
                                           1997          10,
ASSETS                                   Unaudited        1997
                                         ----------      --------

Cash and cash equivalents                $  98,353     $   1,000      

Property and equipment - net                 9,635             0

Deferred debt issuance costs                53,316             0
                                        -----------    ----------

TOTAL                                    $ 161,304     $   1,000      
                                        ===========    ==========

LIABILITIES AND STOCKHOLDERS' DEFICIT

LIABILITIES:
Secured notes payable                    $ 139,000     $       0      
Due to stockholder                           1,750             0
Accrued expenses                            30,000             0
                                        -----------    ----------
  Total liabilities                        170,750             0
                                        -----------    ----------

STOCKHOLDERS' DEFICIT
Common stock, no par value, 10,000
    shares authorized,                        
    1,000 shares issued and outstanding     1,000          1,000
Deficit accumulated during
    the development stage                 (10,446)             0
                                        -----------    ----------
  Total stockholders' deficit              (9,446)         1,000
                                        -----------    ----------

TOTAL                                    $ 161,304     $   1,000      
                                        ===========    ==========


-----------------------------------------------------------------

See accompanying notes.












                                            -3-


<PAGE>

            STERLING FINANCIAL SERVICES OF FLORIDA I, INC.
                     (A Development Stage Company)
                       STATEMENTS OF OPERATIONS
                              (Unaudited)


--------------------------------------------------------------------

                                                          Period
                                                          January
                                       Three              3, 1997
                                       Months             (Inception)
                                       Ended              to June
                                       June 30,           30 , 1997
                                          1997
                                       ------------       ----------

OPERATING EXPENSES:
Management fees - related party       $      4,550      $     4,550   
Office rent - related party                  4,400            4,400
Other                                          250              700
                                      -------------     ------------
    Total operating expenses                 9,200            9,650
                                      -------------     ------------

LOSS FROM OPERATIONS                       (9,200)          (9,650)

INTEREST EXPENSE                             (796)            (796)
                                      -------------     ------------
                                                                      
NET LOSS                              $    (9,996)      $  (10,446)
                                      =============     ============

LOSS PER COMMON SHARE                 $    (10.00)      $   (10.45)   
                                      =============     ============


--------------------------------------------------------------------

See accompanying notes.























                                            -4-

<PAGE>

           STERLING FINANCIAL SERVICES OF FLORIDA I, INC.
                    (A Development Stage Company)
                 STATEMENT OF STOCKHOLDERS' DEFICIT
                             (Unaudited)


------------------------------------------------------------------------------
                                                       Deficit
                                                      Accumulated
                                                      During
                                                         the
                                        Common Stock  Development
                            Shares      Amount          Stage          Total
                            --------  -----------     ----------      --------

Balances, January 3, 1997         0    $       0     $        0     $       0
(Inception)

Issue of common stock         1,000        1,000                        1,000

Net loss for period
  January 3, 1997
 (Inception) through 
  June 30,1997                                         (10,446)       (10,446)
                            --------  -----------    -----------   -----------
Balances, June 30, 1997       1,000   $    1,000     $ (10,446)     $  (9,446)
                            ========  ===========    ===========   ===========



------------------------------------------------------------------------------


See accompanying notes.



























                                            -5-

<PAGE>

               STERLING FINANCIAL SERVICES OF FLORIDA I, INC.
                       (A Development Stage Company)
                          STATEMENTS OF CASH FLOWS
                                (Unaudited)


------------------------------------------------------------------------------
                                                Three              Period
                                                Months           January 3,
                                                Ended               1997
                                                June 30,        (Inception)
                                                   1997          to June 30
                                                                   , 1997
                                                -----------     -------------

CASH FLOWS FROM OPERATING ACTIVITIES:
  Net loss                                      $  (9,996)      $   (10,446)
  Adjustments to reconcile net loss to net
  cash used by operating activities-
    Increase in accrued expenses                    30,000            30,000
                                               ------------   ---------------

NET CASH PROVIDED BY OPERATING  ACTIVITIES          20,004            19,554
                                               ------------   ---------------

CASH FLOWS FROM INVESTING ACTIVITIES-
  Purchase of property and equipment               (9,635)           (9,635)
                                               ------------   ---------------

NET CASH USED BY INVESTING ACTIVITIES              (9,635)           (9,635)
                                               ------------   ---------------

CASH FLOWS FROM FINANCING ACTIVITIES:
  Issuance of common stock                               0             1,000
  Issuance of secured notes payable                139,000           139,000
  Net increase (decrease) in stockholder           
    advance                                        (5,000)             1,750
  Cash paid for deferred debt issuance costs      (46,326)          (53,316)
                                               ------------   ---------------

NET CASH PROVIDED BY FINANCING ACTIVITIES           87,674            88,434
                                               ------------   ---------------

NET INCREASE IN CASH AND CASH EQUIVALENTS           98,042            98,353

CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD         311                 0
                                               ------------   ---------------

CASH AND CASH EQUIVALENTS, END OF PERIOD       $    98,353    $       98,353
                                               ============   ===============

SUPPLEMENTAL DISCLOSURE OF CASH FLOW
  INFORMATION - Interest paid                  $       796    $          796
                                               ============   ===============

-----------------------------------------------------------------------------

See accompanying notes.











                                    -6-
<PAGE>

                       STERLING FINANCIAL SERVICES OF FLORIDA I, INC.
                               (A Development Stage Company)
                               NOTES TO FINANCIAL STATEMENTS
                                        (Unaudited)


--------------------------------------------------------------------------------

NOTE A - FORMATION AND OPERATIONS OF THE COMPANY

Sterling  Financial Services of Florida I, Inc, (the "Company") was incorporated
under the laws of the state of Florida on January 3, 1997.  The Company which is
considered  to be in the  development  stage as defined in Financial  Accounting
Standard No 7, intends to offer financial  services to the sub-prime mobile home
industry,  including originating and refinancing for its own account installment
contracts created in connection with the sale of used and new mobile homes.

NOTE B - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Basis of Presentation

The  accompanying  unaudited  financial  statements  of the  Company  have  been
prepared in accordance with generally accepted accounting principals for interim
financial  information  and the  instructions  to Form  10-QSB  and Rule 10-1 of
Regulation  S-X  of  the  Securities  and  Exchange   Commission   (the  "SEC").
Accordingly,  these  financial  statements  do not include all of the  footnotes
required  by  generally  accepted  accounting  principals.  In  the  opinion  of
management,  all  adjustments  (consisting of normal and recurring  adjustments)
considered  necessary  for a fair  presentation  have been  included.  Operating
results for the three months and the period January 3, 1997  (Inception) to June
30, 1997 are not necessarily  indicative of the results that may be expected for
the period January 3, 1997  (Inception)  to December 31, 1997. The  accompanying
financial  statements  and the  notes  should  be read in  conjunction  with the
Company's audited  financial  statements as of January 10, 1997 contained in its
Amendment No. 3 Registration Statement on Form S-1.

Use of Estimates

The preparation of financial  statements in accordance  with generally  accepted
accounting  principals  requires  that  management  make certain  estimates  and
assumptions  that affect the reported  amounts of assets and liabilities and the
disclosure of  contingent  assets and  liabilities  at the date of the financial
statements.  The  reported  amounts  of the  revenues  and  expenses  during the
reporting  period  may  be  affected  by  the  estimates  and  assumptions  that
management  is  required  to  make.  Actual  results  could  differ  from  those
estimates.

Basis of Accounting

The  Company's  financial  statements  are prepared  using the accrual  basis of
accounting.

Year End

The Company's year-end for financial and tax-reporting purposes is December 31.

Financial Instruments

The  Company  believes  the book  value of their cash and cash  equivalents  and
accrued expenses  approximates their fair values due to their short-term nature.
The book value of the Company's  secured notes payable  approximates  their fair
value as the current interest rates  approximate rates at which similar types of
borrowing arrangements could be currently obtained by the Company.

                                            -7-
<PAGE>

Property and Equipment

Property and equipment  are stated at cost.  Major  additions  are  capitalized,
while minor  additions  and  maintenance  and  repairs,  which do not extend the
useful life of an asset, are expensed as incurred. Depreciation will be computed
using an accelerated method over the assets' estimated useful lives of 5 to 27.5
years.

Income Taxes

The Company has elected to be taxed under  Subchapter S of the Internal  Revenue
Code,  and  accordingly  is not  subject  to  income  taxes  as the  results  of
operations flow through to the  shareholders for inclusion in their personal tax
returns.

Deferred Debt Issuance Costs

Direct costs  incurred to register and issue the secured  notes will be deferred
and amortized to interest  expense over the lives of the related loans using the
actuarial method.

Loss Per Common Share

Loss per  common  share is based on the  weighted  average  number of common and
common equivalent  shares  outstanding  during the period.  The weighted average
number of common shares outstanding for the three months ended June 30, 1997 and
for the period January 3, 1997 (Inception) to June 30, 1997 was 1,000.

Statement of Cash Flows

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

NOTE C - SECURED NOTES PAYABLE

Secured notes payable bear interest at 10.5%, with interest payable monthly, and
mature on June 30, 2002. The notes will be secured by a first lien on any assets
acquired with the proceeds.  The notes are prepayable in whole or in part at any
time without premium or penalty. The Company has registered $9.9 million of such
notes and is continuing  to offer the remaining  $9,761,000 of secured notes for
sale. The notes are being offered on a "best-efforts"  basis by  broker-dealers,
who are members of the National Association of Securities Dealers, Inc.

NOTE D - RELATED PARTY TRANSACTIONS

The  Company's  majority  stockholder  advanced  $6,750 to the  Company of which
$5,000 was repaid  during the  period  January 3, 1997  (Inception)  to June 30,
1997;  the  remaining  $1,750  is  reflected  as a due  to  stockholder  in  the
accompanying  balance sheet.  The advances were and are unsecured,  non-interest
bearing and due on demand.

Sterling  Financial  Services,  Inc.  ("SFS"),  a  related  party  due to common
ownership  manages  the  Company  and  leases  space  to  the  Company  for  its
operations.  Management  fees and  office  rent paid to SFS  during  the  period
January 3, 1997 (Inception) to June 30, 1997 totaled $8,950.






                                    -8-


<PAGE>


Item 2.

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

OVERVIEW

The following  discussion and analysis  should be read in  conjunction  with the
balance sheet as of January 10, 1997 and the financial  statements as of and for
the three months ended June 30, 1997 and the period January 3, 1997  (Inception)
to June 30, 1997 included with this Form 10-QSB.

The  Company,  which is  currently in the  development  stage,  intends to offer
financial  services to the  sub-prime  mobile home industry by  originating  and
refinancing  sub-prime  mobile home installment  contracts.  The Company has not
originated or refinanced any installment notes as of June 30, 1997.

RESULTS OF OPERATIONS

The Company did not  generate  revenue  during the three  months  ended June 30,
1997.  Operating  expenses  during the same period  totaled $9,200 and consisted
primarily of management  fees and rent of $8,950.  The management  fees and rent
were paid to Sterling Financial Services,  Inc. ("SFS"), which is related to the
Company by virtue of common ownership.  Interest expense of $796 was incurred on
outstanding  secured notes of $139,000  during the three-month  period.  The net
losses for the three  months  ended June 30, 1997 and for the period  January 3,
1997 (Inception) to June 30, 1997 were $9,996 and $10,446, respectively.

The losses are the result of the initial startup costs incurred to implement the
Company's business plan.

LIQUIDITY AND CAPITAL RESOURCES

Operating activities in the three months ended June 30, 1997 provided $20,004 in
cash flow due to an increase in accrued  expenses  of  $30,000.  Offsetting  the
increase  in cash due to  accrued  expenses  was a loss of $9,996  for the three
months ended June 30, 1997. There was no significant activity prior to the three
months ended June 30, 1997.

Financing  activities  generated  additional  cash  flow of  $139,000  from  the
proceeds of secured notes payable. Financing activities utilized $51,326 of cash
flow due to the  payment of $46,326 in deferred  debt  issuance  costs,  and the
repayment of $5,000 that had been  advanced by the majority  stockholder  during
the three months ended June 30, 1997. The balance of the stockholder  advance is
$1,750 which amount is unsecured non-interest bearing, and due on demand.

The Company is offering  subscriptions  for a maximum of 9,900  secured notes in
the  principal  amount of  $1,000  each.  As such,  $9,761,000  of notes  remain
available  for sale as of June 30,  1997.  If all of these  notes are sold,  the
Company will net  approximately  $8,784,000.  The notes bear simple  interest at
10.5% and mature on June 30, 2002.  Interest is payable monthly.  The notes will
be  secured  by a first lien on the assets  acquired  with the  proceeds  of the
offering.  The  notes  are  prepayable  in whole or in part at any time  without
premium or penalty.

The Company  believes that it will be able to satisfy its cash  requirements for
the  foreseeable  future  if it does not  expand  its  business  by  originating
additional finance receivable  contracts.  However,  in order for the Company to
expand its  dealer  base and  portfolio  of finance  receivable  contracts,  the
Company must secure  additional  capital  resources  through  additional debt or
equity offerings and/or  institutional  financing,  such as a line of credit. No
assurance  can be given that  additional  capital  resources  will be  available
through such sources, or available on reasonable terms. If the Company is unable
to  originate  finance  receivable  contracts  in an  amount  and at a pace that
approximates the amount and the pace that capital is raised through the issue of
secured notes,  the interest earned on the capital raised will not be sufficient
to cover the cost of the interest on the secured notes.

--------------------------------------------------------------------------------



                                            -9-


<PAGE>


                                PART II. - OTHER INFORMATION

Item 1. Legal Proceedings

      NONE

Item 2. Changes in Securities

      NONE

Item 3. Defaults Upon Senior Securities

      NONE

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

      NONE

Item 5. Other Information

      NONE

Item 6. Exhibits and Reports on Form 8-K

      NONE


                                         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.




05/03/99                                         /s/ Anthony A. Sutter
----------------------------                    --------------------------------
         Date                                    Anthony A. Sutter, President








                                            -10-


<PAGE>