<TABLE> <S> <C>

<ARTICLE> 6
<LEGEND>
This Schedule contains summary financial information extracted from Allied
Capital Corporation II and subsidiaries' consolidated balance sheet and
consolidated statements of operations, changes in net assets and cash flows and
is qualified in its entirety by reference to such financial statements.
</LEGEND>
<MULTIPLIER> 1,000
       
<S>                             <C>
<PERIOD-TYPE>                   9-MOS
<FISCAL-YEAR-END>                          DEC-31-1996
<PERIOD-START>                             JAN-01-1996
<PERIOD-END>                               SEP-30-1996
<INVESTMENTS-AT-COST>                           94,211
<INVESTMENTS-AT-VALUE>                          97,808
<RECEIVABLES>                                        0
<ASSETS-OTHER>                                  11,913
<OTHER-ITEMS-ASSETS>                                 0
<TOTAL-ASSETS>                                 109,721
<PAYABLE-FOR-SECURITIES>                             0
<SENIOR-LONG-TERM-DEBT>                              0
<OTHER-ITEMS-LIABILITIES>                          882
<TOTAL-LIABILITIES>                                882
<SENIOR-EQUITY>                                  7,367
<PAID-IN-CAPITAL-COMMON>                        96,471
<SHARES-COMMON-STOCK>                            7,367
<SHARES-COMMON-PRIOR>                            7,104
<ACCUMULATED-NII-CURRENT>                        4,574
<OVERDISTRIBUTION-NII>                               0
<ACCUMULATED-NET-GAINS>                              0
<OVERDISTRIBUTION-GAINS>                             0
<ACCUM-APPREC-OR-DEPREC>                         3,597
<NET-ASSETS>                                   108,839
<DIVIDEND-INCOME>                                    0
<INTEREST-INCOME>                                8,852
<OTHER-INCOME>                                      71
<EXPENSES-NET>                                   2,271
<NET-INVESTMENT-INCOME>                          6,652
<REALIZED-GAINS-CURRENT>                         6,141
<APPREC-INCREASE-CURRENT>                      (2,084)
<NET-CHANGE-FROM-OPS>                           10,709
<EQUALIZATION>                                       0
<DISTRIBUTIONS-OF-INCOME>                        7,685
<DISTRIBUTIONS-OF-GAINS>                             0
<DISTRIBUTIONS-OTHER>                                0
<NUMBER-OF-SHARES-SOLD>                             90
<NUMBER-OF-SHARES-REDEEMED>                          0
<SHARES-REINVESTED>                                173
<NET-CHANGE-IN-ASSETS>                           6,858
<ACCUMULATED-NII-PRIOR>                          (534)
<ACCUMULATED-GAINS-PRIOR>                            0
<OVERDISTRIB-NII-PRIOR>                              0
<OVERDIST-NET-GAINS-PRIOR>                           0
<GROSS-ADVISORY-FEES>                            1,862
<INTEREST-EXPENSE>                                   0
<GROSS-EXPENSE>                                  2,271
<AVERAGE-NET-ASSETS>                           105,410
<PER-SHARE-NAV-BEGIN>                            14.36
<PER-SHARE-NII>                                    .91
<PER-SHARE-GAIN-APPREC>                            .56
<PER-SHARE-DIVIDEND>                              1.05
<PER-SHARE-DISTRIBUTIONS>                            0
<RETURNS-OF-CAPITAL>                                 0
<PER-SHARE-NAV-END>                              14.77
<EXPENSE-RATIO>                                    .02
<AVG-DEBT-OUTSTANDING>                               0
<AVG-DEBT-PER-SHARE>                                 0
        

</TABLE>