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                                                                 EXHIBIT 99.2n.2

                    REPORT OF INDEPENDENT PUBLIC ACCOUNTANTS

To the Shareholders and Board of Directors
of Allied Capital Corporation and Subsidiaries

We have audited the accompanying senior securities table of Allied Capital
Corporation as of December 31, 2000. This schedule is the responsibility of the
Company's management. Our responsibility is to express an opinion on this
schedule based on our audit.

We conducted our audit in accordance with auditing standards generally accepted
in the United States. Those standards require that we plan and perform the audit
to obtain reasonable assurance about whether the securities table is free of
material misstatement. An audit includes examining, on a test basis, evidence
supporting the amounts and disclosures in the schedule. An audit also includes
assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall schedule presentation. We believe
that our audit provides a reasonable basis for our opinion.

In our opinion, the senior securities table referred to above presents fairly,
in all material respects, the senior securities of Allied Capital Corporation as
of December 31, 2000, in conformity with accounting principles generally
accepted in the United States.



/s/ ARTHUR ANDERSEN LLP
Vienna, Virginia


Februrary 13, 2001