<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 form 10q for the quarter
ended June 30, 1997.
</LEGEND>
<MULTIPLIER> 1,000
       
<S>                             <C>
<PERIOD-TYPE>                   6-MOS
<FISCAL-YEAR-END>                          DEC-31-1997
<PERIOD-START>                             JAN-01-1997
<PERIOD-END>                               JUN-30-1997
<INVESTMENTS-AT-COST>                           76,815
<INVESTMENTS-AT-VALUE>                          75,860
<RECEIVABLES>                                        0
<ASSETS-OTHER>                                  32,420
<OTHER-ITEMS-ASSETS>                                 0
<TOTAL-ASSETS>                                 108,280
<PAYABLE-FOR-SECURITIES>                             0
<SENIOR-LONG-TERM-DEBT>                              0
<OTHER-ITEMS-LIABILITIES>                          685
<TOTAL-LIABILITIES>                                685
<SENIOR-EQUITY>                                  7,617
<PAID-IN-CAPITAL-COMMON>                       100,685
<SHARES-COMMON-STOCK>                            7,617
<SHARES-COMMON-PRIOR>                            7,550
<ACCUMULATED-NII-CURRENT>                        3,961
<OVERDISTRIBUTION-NII>                               0
<ACCUMULATED-NET-GAINS>                              0
<OVERDISTRIBUTION-GAINS>                             0
<ACCUM-APPREC-OR-DEPREC>                         (955)
<NET-ASSETS>                                   107,595
<DIVIDEND-INCOME>                                    0
<INTEREST-INCOME>                                5,348
<OTHER-INCOME>                                   1,519
<EXPENSES-NET>                                   1,371
<NET-INVESTMENT-INCOME>                          5,496
<REALIZED-GAINS-CURRENT>                         3,264
<APPREC-INCREASE-CURRENT>                        (210)
<NET-CHANGE-FROM-OPS>                            8,550 
<EQUALIZATION>                                       0
<DISTRIBUTIONS-OF-INCOME>                        6,698
<DISTRIBUTIONS-OF-GAINS>                             0
<DISTRIBUTIONS-OTHER>                                0
<NUMBER-OF-SHARES-SOLD>                             21
<NUMBER-OF-SHARES-REDEEMED>                          0
<SHARES-REINVESTED>                                 47
<NET-CHANGE-IN-ASSETS>                           4,757
<ACCUMULATED-NII-PRIOR>                          1,898
<ACCUMULATED-GAINS-PRIOR>                            0
<OVERDISTRIB-NII-PRIOR>                              0
<OVERDIST-NET-GAINS-PRIOR>                           0
<GROSS-ADVISORY-FEES>                            1,082
<INTEREST-EXPENSE>                                   0
<GROSS-EXPENSE>                                  1,371
<AVERAGE-NET-ASSETS>                           105,217
<PER-SHARE-NAV-BEGIN>                            13.62
<PER-SHARE-NII>                                   0.72
<PER-SHARE-GAIN-APPREC>                           0.40
<PER-SHARE-DIVIDEND>                              0.87
<PER-SHARE-DISTRIBUTIONS>                            0
<RETURNS-OF-CAPITAL>                                 0
<PER-SHARE-NAV-END>                              14.13
<EXPENSE-RATIO>                                    .05
<AVG-DEBT-OUTSTANDING>                               0
<AVG-DEBT-PER-SHARE>                                 0
        

</TABLE>