<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 asets and cash flows and
is qualified in its entirety by reference to such financial statements.
</LEGEND>
<MULTIPLIER> 1,000
       
<S>                             <C>
<PERIOD-TYPE>                   3-MOS
<FISCAL-YEAR-END>                          DEC-31-1997
<PERIOD-START>                             JAN-01-1997
<PERIOD-END>                               MAR-31-1997
<INVESTMENTS-AT-COST>                           84,934
<INVESTMENTS-AT-VALUE>                          82,161
<RECEIVABLES>                                        0
<ASSETS-OTHER>                                  26,516
<OTHER-ITEMS-ASSETS>                                 0
<TOTAL-ASSETS>                                 108,677
<PAYABLE-FOR-SECURITIES>                             0
<SENIOR-LONG-TERM-DEBT>                              0
<OTHER-ITEMS-LIABILITIES>                        3,421
<TOTAL-LIABILITIES>                              3,421
<SENIOR-EQUITY>                                  7,604
<PAID-IN-CAPITAL-COMMON>                       100,498
<SHARES-COMMON-STOCK>                            7,604
<SHARES-COMMON-PRIOR>                            7,550
<ACCUMULATED-NII-CURRENT>                        3,689
<OVERDISTRIBUTION-NII>                               0
<ACCUMULATED-NET-GAINS>                              0
<OVERDISTRIBUTION-GAINS>                             0
<ACCUM-APPREC-OR-DEPREC>                       (2,773)
<NET-ASSETS>                                   105,256
<DIVIDEND-INCOME>                                    0
<INTEREST-INCOME>                                2,636
<OTHER-INCOME>                                      91
<EXPENSES-NET>                                     701
<NET-INVESTMENT-INCOME>                          2,026
<REALIZED-GAINS-CURRENT>                         3,035
<APPREC-INCREASE-CURRENT>                      (2,028)
<NET-CHANGE-FROM-OPS>                            3,033
<EQUALIZATION>                                       0
<DISTRIBUTIONS-OF-INCOME>                        3,270
<DISTRIBUTIONS-OF-GAINS>                             0
<DISTRIBUTIONS-OTHER>                                0
<NUMBER-OF-SHARES-SOLD>                              7
<NUMBER-OF-SHARES-REDEEMED>                          0
<SHARES-REINVESTED>                                 47
<NET-CHANGE-IN-ASSETS>                           2,418
<ACCUMULATED-NII-PRIOR>                          1,898
<ACCUMULATED-GAINS-PRIOR>                            0
<OVERDISTRIB-NII-PRIOR>                              0
<OVERDIST-NET-GAINS-PRIOR>                           0
<GROSS-ADVISORY-FEES>                              559
<INTEREST-EXPENSE>                                   0
<GROSS-EXPENSE>                                    701
<AVERAGE-NET-ASSETS>                           104,047
<PER-SHARE-NAV-BEGIN>                            13.62
<PER-SHARE-NII>                                   0.26
<PER-SHARE-GAIN-APPREC>                           0.13
<PER-SHARE-DIVIDEND>                              0.43
<PER-SHARE-DISTRIBUTIONS>                            0
<RETURNS-OF-CAPITAL>                                 0
<PER-SHARE-NAV-END>                              13.84
<EXPENSE-RATIO>                                    .01
<AVG-DEBT-OUTSTANDING>                               0
<AVG-DEBT-PER-SHARE>                                 0
        

</TABLE>