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

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

                                    FORM 10-Q
                   Quarterly Report Under Section 13 or 15(d)
              of the United States Securities Exchange Act of 1934

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


For The Quarter Ended September 30, 1996             Commission File No. 2-97907


                      COLUMBIA LEASE INCOME FUND II-B L.P.
             (Exact name of registrant as specified in its charter)


         Delaware                                                     13-3263135
(State or other jurisdiction of                                 (I.R.S. Employer
incorporation or organization)                               Identification No.)


    One Financial Center, 21st Floor, Boston, MA                           02111
(Address of principal executive offices)                              (Zip Code)


Registrant's telephone number, including area code                (617) 482-8000

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


                                 Not Applicable
              (Former name, former address and former fiscal year,
                         if changed since last report)

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 ___

                             There are no Exhibits.

                                  Page 1 of 11

<PAGE>

<TABLE>
<CAPTION>

                      COLUMBIA LEASE INCOME FUND II-B L.P.
                        (A Delaware Limited Partnership)


 

<S>           <C>                                                                                                 <C>
                              INDEX                                                                               Page No.

Part I.       FINANCIAL INFORMATION

              Financial Statements

                    Balance Sheets as of September 30, 1996 and December 31, 1995                                 3

                    Statements of Operations For the Quarters Ended
                          September 30, 1996 and 1995 and the Nine Months Ended
                          September 30, 1996 and 1995                                                             4

                    Statements of Cash Flows For the Nine Months Ended
                          September 30, 1996 and 1995                                                             5

                    Notes to Financial Statements                                                                 6 - 7

              Management's Discussion and Analysis of Financial Condition and
                    Results of Operations                                                                         8 - 9

Part II.      OTHER INFORMATION

              Items 1 - 6                                                                                         10

              Signature                                                                                           11
</TABLE>


<PAGE>

<TABLE>
<CAPTION>

                          PART I. FINANCIAL INFORMATION

                      COLUMBIA LEASE INCOME FUND II-B L.P.
                        (A Delaware Limited Partnership)

                                 Balance Sheets

                                     Assets                                         (Unaudited)              (Audited)
                                                                                      9/30/96                 12/31/95
                                                                                  ---------------        ---------------

<S>                                                                               <C>                    <C>            
Investment property, at cost (note 3):
   Computer equipment                                                             $     1,386,685        $     2,077,781
     Less accumulated depreciation                                                      1,007,448              1,470,538
                                                                                  ---------------        ---------------
       Investment property, net                                                           379,237                607,243

Cash and cash equivalents                                                                  19,260                110,280
Net investment in sales-type and direct financing leases                                        -                    359
Rents receivable, net (note 2)                                                             15,933                 12,186
Sales receivable                                                                                -                    975
Accounts receivable - affiliates                                                            1,828                  1,777
                                                                                  ---------------        ---------------

     Total assets                                                                 $       416,258        $       732,820
                                                                                  ===============        ===============

                        Liabilities and Partners' Equity
Liabilities:
   Current portion of long-term debt (note 5)                                     $       181,457        $       208,083
   Accounts payable and accrued expenses - affiliates (note 4)                             36,114                 37,608
   Accounts payable and accrued expenses                                                   21,123                 51,962
   Distributions payable (note 6)                                                          26,601                 79,805
   Long-term debt, less current portion (note 5)                                          152,595                289,416
                                                                                  ---------------        ---------------

     Total liabilities                                                                    417,890                666,874
                                                                                  ---------------        ---------------

Partners' equity:
   General Partner:
     Capital contribution                                                                   1,000                  1,000
     Cumulative net income                                                                 59,910                 57,969
     Cumulative cash distributions                                                       (406,243)              (400,921)
     Reallocation of capital accounts                                                     345,333                341,952
                                                                                  ---------------        ---------------
                                                                                                -                      -
                                                                                  ---------------        ---------------
   Limited Partners (20,217 units):
     Capital contribution, net of
       offering costs                                                                   8,844,937              8,844,937
     Cumulative net income                                                              1,138,319              1,101,431
     Cumulative cash distributions                                                     (9,639,555)            (9,538,470)
     Reallocation of capital accounts                                                    (345,333)              (341,952)
                                                                                  ---------------        ---------------
                                                                                           (1,632)                65,946
                                                                                  ---------------        ---------------
     Total partners' equity                                                                (1,632)                65,946
                                                                                  ---------------        ---------------

     Total liabilities and partners' equity                                       $       416,258        $       732,820
                                                                                  ===============        ===============
</TABLE>

                 See accompanying notes to financial statements.


<PAGE>

<TABLE>
<CAPTION>

                      COLUMBIA LEASE INCOME FUND II-B L.P.
                        (A Delaware Limited Partnership)

                            Statements of Operations
                                   (Unaudited)

                                                       Quarters Ended                          Nine Months Ended
                                                        September 30,                            September 30,
                                                    1996             1995                 1996               1995
                                                 -----------------------------        --------------------------------  

<S>                                              <C>             <C>                  <C>                <C>          
Revenue:
   Rental income on operating leases             $     117,484   $     151,749        $     366,539      $     385,209
   Earned income on sales-type and
     direct financing lease                                  -              41                    -                446
   Interest income                                         110             306                1,485              2,212
   Net gain on sale of equipment                           308             580                2,398             16,224
                                                 -------------   -------------        -------------      -------------

       Total revenue                                   117,902         152,676              370,422            404,091
                                                 -------------   -------------        -------------      -------------

Costs and expenses:
   Depreciation                                         64,203          85,068              227,516            241,972
   Interest                                              7,135           4,129               25,885              8,170
   Related party expenses (note 4):
     Management fees                                     6,461           8,453               21,009             21,781
     General and administrative                         17,077          16,577               53,992             44,447
   Provision for doubtful accounts                       4,522             803                3,191              1,180
                                                 -------------   -------------        -------------      -------------

       Total costs   and expenses                       99,398         115,030              331,593            317,550
                                                 -------------   -------------        -------------      -------------

Net income                                       $      18,504   $      37,646        $      38,829      $      86,541
                                                 =============   =============        =============      =============

Net income per Limited
   Partnership Unit                              $        0.87   $        1.77        $        1.82      $        4.07
                                                 =============   =============        =============      =============
</TABLE>

                 See accompanying notes to financial statements.



<PAGE>

<TABLE>
<CAPTION>

                      COLUMBIA LEASE INCOME FUND II-B L.P.
                        (A Delaware Limited Partnership)

                            Statements of Cash Flows
              For the Nine Months Ended September 30, 1996 and 1995
                                   (Unaudited)

                                                                                            1996                     1995
                                                                                            ----                     ----

<S>                                                                                   <C>                     <C>             
Cash flows from operating activities:
   Net income                                                                         $        38,829         $         86,541
                                                                                      ---------------         ----------------

Adjustments  to  reconcile   net  income  to
   net  cash  provided  by  operating  activities:
     Depreciation                                                                             227,516                  241,972
     Provision for doubtful accounts                                                            3,191                    1,180
     Net gain on sale of equipment                                                             (2,398)                 (16,224)
     Net (increase) decrease in current assets                                                 (5,655)                  12,626
     Net decrease in current liabilities                                                      (32,333)                 (10,820)
                                                                                      ---------------         ----------------

           Total adjustments                                                                  190,321                  228,734
                                                                                      ---------------         ----------------

           Net cash provided by operating activities                                          229,150                  315,275
                                                                                      ---------------         ----------------

Cash flows from investing activities:
   Purchase of investment property                                                                  -                 (489,517)
   Proceeds from sales of investment property                                                   2,888                   43,724
                                                                                      ---------------         ----------------

           Net cash provided by (used in) investing activities                                  2,888                 (445,793)
                                                                                      ---------------         ----------------

Cash flows from financing activities:
   Proceeds from borrowing on notes payable - affiliates                                            -                  364,677
   Principal payment on long-term debt                                                       (163,447)                 (49,994)
   Principal payment on notes payable - affiliates                                                  -                   (7,770)
   Cash distributions to partners                                                            (159,611)                (380,399)
                                                                                      ---------------         ----------------

           Net cash used in financing activities                                             (323,058)                 (73,486)
                                                                                      ---------------         ----------------

Net decrease in cash and cash equivalents                                                     (91,020)                (204,004)

Cash and cash equivalents at beginning of period                                              110,280                  244,809
                                                                                      ---------------         ----------------

Cash and cash equivalents at end of period                                            $        19,260         $         40,805
                                                                                      ===============         ================

Supplemental cash flow information:
   Interest paid during period                                                        $        25,885         $          6,614
                                                                                      ===============         ================

Non-cash investing activities:
   Reclassification of expired direct financing
     lease to operating lease                                                         $             -         $          4,318
                                                                                      ===============         ================
</TABLE>

                 See accompanying notes to financial statements.


<PAGE>


                      COLUMBIA LEASE INCOME FUND II-B L.P.
                        (A Delaware Limited Partnership)

                          Notes to Financial Statements
       For the Nine Months Ended September 30, 1996 and September 30, 1995
                                   (Unaudited)

(1)   Organization

The foregoing financial  statements of Columbia Lease Income Fund II-B L.P. (the
"Partnership")  have been prepared in accordance  with the rules and regulations
of the  Securities  and  Exchange  Commission  for  Form  10-Q and  reflect  all
adjustments  which are,  in the  opinion  of  management,  necessary  for a fair
presentation of the results for the interim periods presented.  Pursuant to such
rules and  regulations,  certain note  disclosures  which are normally  required
under  generally  accepted  accounting  principles  have  been  omitted.  It  is
recommended  that these  financial  statements be read in  conjunction  with the
Partnership's Annual Report on Form 10-K for the year ended December 31, 1995.

(2)   Significant Accounting Policies

Allowance for Doubtful Accounts

The financial statements include an allowance for estimated losses on receivable
balances.  The  allowance  for  doubtful  accounts  is based on past  write  off
experience  and an evaluation  of potential  uncollectible  accounts  within the
current  receivable  balances.  Receivable  balances  which are determined to be
uncollectible  are charged against the allowance and subsequent  recoveries,  if
any, are credited to the allowance. At September 30, 1996 and December 31, 1995,
the allowance for doubtful  accounts included in rents receivable was $6,873 and
$3,682, respectively.

(3)   Investment Property

At September 30, 1996,  the  Partnership  owned  computer  equipment with a cost
basis of $1,222,789,  subject to existing leases and equipment with a cost basis
of $163,896 in inventory  awaiting  re-lease or sale.  All purchases of computer
equipment are subject to a 2.5% acquisition fee paid to the General Partner.


<PAGE>


                      COLUMBIA LEASE INCOME FUND II-B L.P.
                        (A Delaware Limited Partnership)

                          Notes to Financial Statements
       For the Nine Months Ended September 30, 1996 and September 30, 1995
                                   (Unaudited)

(4)   Related Party Transactions

Fees,  commissions  and other expenses paid or accrued by the Partnership to the
General  Partner or affiliates of the General  Partner for the nine months ended
September 30, 1996 and 1995 are as follows:

<TABLE>
<CAPTION>
                                                       1996             1995
                                                       ----             ----

<S>                                               <C>              <C>           
Equipment acquisition fees                        $          -     $       11,939
Management fees                                         21,009             21,781
Reimbursable expenses paid                              50,954             46,247
                                                  ------------     --------------

                                                  $     71,963     $       79,967
                                                  ============     ==============
</TABLE>

Under the terms of the Partnership Agreement, the General Partner is entitled to
an  equipment  acquisition  fee  of  2.5%  of the  purchase  price  paid  by the
Partnership  for the  equipment.  The  General  Partner  is also  entitled  to a
management fee equal to 6% of the monthly rental billings,  paid monthly,  based
on rents  received.  The  Partnership  reimburses  the  General  Partner and its
affiliates  for  certain  expenses  incurred  by them  in  connection  with  the
operation of the Partnership.

(5)   Long-Term Debt

Long-term  debt at September  30, 1996 consists of three  installment  notes for
$26,321,  $40,982 and $266,749 from Liberty Bank,  each with an interest rate of
8.250%,  8.250% and 7.750%,  respectively,  collateralized  by the  equipment on
lease.

The annual maturities of long-term debt for the next three years are as follows:


                        1996                        $     44,636
                        1997                             177,540
                        1998                             111,876
                                                    ------------

                                                    $    334,052
                                                    ============

(6)   Distributions to Partners

For the nine months ended September 30, 1996, the  declaration of  Distributable
Cash was as follows:

<TABLE>
<CAPTION>
                                                                       Limited Partners
                                                                                                        General
                              Date Paid                       Distribution                              Partner
Quarter Ended                 or Payable                      Per $500 Unit            Total             Total
-------------                 ----------                      -------------            -----             -----

<S>                           <C>                                 <C>                <C>                <C>    
March 31, 1996                May 15, 1996                        $ 2.50             $ 50,542           $ 2,660
June 30, 1996                 August 15, 1996                     $ 1.25             $ 25,271           $ 1,330
September 30, 1996            November 15, 1996                   $ 1.25             $ 25,271           $ 1,330

</TABLE>

<PAGE>


                      COLUMBIA LEASE INCOME FUND II-B L.P.
                        (A Delaware Limited Partnership)

                     Management's Discussion and Analysis of
                  Financial Condition and Results of Operation
                                   (Unaudited)

Results of Operations

The following discussion relates to Partnership's operations for the quarter and
nine month periods ended September 30, 1996 in comparison to the same periods in
1995.

The  Partnership  realized net income of $18,504 and $37,646 for the three month
periods  ended  September  30,  1996 and 1995,  respectively.  Rental  income on
operating leases decreased  $34,265 or 23% between the three month periods.  The
decrease is primarily  due to lower rental  rates  generated on equipment  lease
extensions  and  remarketings  resulting  after the initial  lease term expires.
Interest  income has  decreased  $196 as a result of lower average cash balances
held during the current quarter.

Total  costs and  expenses  decreased  $15,632 or 14%  between  the three  month
periods. The decrease in costs and expenses is due to a portion of the equipment
portfolio becoming fully  depreciated.  Interest expense increased $3,006 as the
Partnership  continued to paydown its long-term debt during the current quarter.
The long-term  debt balance at September 30, 1996 was $334,052  versus a balance
of $356,907 at September 30, 1995.  Management fees decreased due to the decline
in rental income.  General and  administrative  expenses  increased  between the
three  month  periods  due to an  increase  in  the  allocable  salaries  of the
partnership  accounting  and  reporting  personnel of the General  Partner.  The
Partnership  increased  its  provision  for doubtful  accounts by $4,522 for the
three  month  period  ended   September   30,  1996  to  reserve  for  potential
uncollectible accounts.

The  Partnership  realized  net income of $38,829 and $86,541 for the nine month
periods ended September 30, 1996 and 1995, respectively. Rental income decreased
$18,670 or 5% between the nine month  periods.  The decrease in rental income is
primarily  due  to  lower  rental  rates  on  equipment  lease   extensions  and
remarketing  resulting  after initial  lease term  expires.  No earned income on
direct financing leases has been recognized during the current nine month period
due to the complete allocation of the lease payments to the fair market value of
the equipment over the lease terms in 1995.  Interest income  decreased $727 due
to the Partnership carrying lower average short-term  investment balances during
the first  nine  months  of 1996.  The net gain on sale of  equipment  decreased
during the current year due to fewer sales of equipment.

Total costs and expenses increased $14,043 or 4% between the nine month periods.
The increase in costs and expenses is primarily the result of increased interest
expense and general and  administrative  expenses.  Interest  expense  increased
$17,715,  as the Partnership  continued to paydown its long-term debt during the
nine month period ended September 30, 1996. General and administrative  expenses
increased due to an increase in allocable salaries of the partnership accounting
and reporting  personnel of the General  Partner.  The decrease in  depreciation
expense  between  the nine month  periods  is due to a portion of the  equipment
portfolio becoming fully depreciated. Management fees decreased slightly between
the nine month periods due to the decline in rental income.  As discussed in the
quarter  analysis above,  the  Partnership  increased its provision for doubtful
accounts to reserve for potential uncollectible accounts.



<PAGE>


                      COLUMBIA LEASE INCOME FUND II-B L.P.
                        (A Delaware Limited Partnership)

                     Management's Discussion and Analysis of
                  Financial Condition and Results of Operation
                                   (Unaudited)

The Partnership  recorded net income per Limited  Partnership  Unit of $0.87 and
$1.77 for the quarters  ended  September  30, 1996 and 1995,  respectively,  and
$1.82 and $4.07 for the nine month  periods  ended  September 30, 1996 and 1995,
respectively.

Liquidity and Capital Resources

For the nine months ended  September 30, 1996,  rental  revenue  generated  from
operating  leases  was the  primary  source  of funds  for the  Partnership.  As
equipment leases terminate, the General Partner determines if the equipment will
be extended to the same lessee,  remarketed to another lessee,  or if it is less
marketable,  sold.  This  decision is made upon  analyzing  which  option  would
generate the most favorable results.

Rental income on operating  leases will continue to decrease due to two factors.
First,  lower rental rates are obtained on the remarketing of existing equipment
after the expiration of the original lease. Typically,  the remarketed rates are
lower  due to  the  decrease  in  useful  life  of the  equipment.  Second,  the
increasing  change of technology in the computer  industry usually decreases the
demand for older  equipment,  thus increasing the  possibility of  obsolescence.
Both of these  factors  together  will cause  remarketed  rates to be lower than
original  rates.  This  decrease  however,  should not affect the  Partnership's
ability to meet its future  cash  requirements.  To the extent  that future cash
flows should be insufficient to meet the  Partnership's  operating  expenses and
liabilities,  additional  funds could be obtained through the sale of equipment,
or a reduction in the rate of cash  distributions.  Future rental  revenues from
operating  leases  amount to $548,829 and are to be received  over the next five
years.

For the nine months  ended  September  30,  1996,  the  Partnership's  investing
activities  generated  $2,888 in sales  proceeds on the sale of equipment with a
depreciated  cost  basis  of  $490.  The  Partnership  has no  material  capital
expenditure  commitments  and will not  purchase  equipment in the future as the
Partnership has reached the end of its reinvestment period.

The Partnership's  financing  activities resulted in a paydown on long-term debt
of $163,447 for the nine months ended September 30, 1996. The  Partnership  will
payoff its remaining long-term debt of $334,052 by 1998.

Cash  distributions  are  currently  at  an  annual  level  of  1%  per  Limited
Partnership  Unit, or $1.25 per Limited  Partnership  Unit on a quarterly basis.
For the quarter  ended  September  30,  1996,  the  Partnership  declared a cash
distribution  of $26,601,  of which $1,330 was allocated to the General  Partner
and $25,271 was allocated to the Limited  Partners.  The distribution is payable
on November 15, 1996. The Partnership  expects to continue paying  distributions
near this  level.  The effects of  inflation  have not been  significant  to the
Partnership and are not expected to have a material impact in future periods.

On  January 9, 1996,  TLP  Holding  LLC  purchased  all the common  stock of TLP
Leasing  Programs,  Inc.  from CMI Holding Co.  Under the new  ownership,  it is
expected  that TLP Leasing  Programs,  Inc. will continue to operate in the same
manner of business as it has in the past.



<PAGE>

<TABLE>
<CAPTION>

                           PART II. OTHER INFORMATION

                      COLUMBIA LEASE INCOME FUND II-B L.P.
                        (A Delaware Limited Partnership)


<S>            <C>
Item 1.        Legal Proceedings
               Response:  None

Item 2.        Changes in the Rights of the Partnership's Security Holders
               Response:  None

Item 3.        Defaults by the Partnership on its Senior Securities
               Response:  None

Item 4.        Results of Votes of Security Holders
               Response:  None

Item 5.        Other Information
               Response:  None

Item 6.        Exhibits and Reports on Form 8-K
               Response:

               A.  None

               B.  None
</TABLE>


<PAGE>


                                    SIGNATURE

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.


COLUMBIA LEASE INCOME FUND II-B L.P.
(Registrant)

By:    TLP Columbia Management Corporation,
       its General Partner


Date:  November 14, 1996

By:    Arthur P. Beecher,
       President