Power of Attorney

	I, Kelly A. Anderson, an Officer of Allied Capital Corporation (the "Company"),
 hereby authorize and designate each of Suzanne V. Sparrow
 and Penni F. Roll as my agent and attorney-in-fact, with
full power of substitution, to:

	(1)  prepare and sign on my behalf any Form 3,
Form 4 or Form 5 under Section 16 of the Securities Exchange Act of 1934,
 and file the same with the Securities and Exchange Commission and each
stock exchange on which the Company's securities are listed; and

	(2)  take any other action of any type whatsoever in connection
 with the foregoing which, in the opinion of such attorney-in-fact,
may be of benefit to me, in my best interest, or legally required by me,
it being understood that the documents executed by such attorney-in-fact
on my behalf pursuant to this Power of Attorney shall be in such form
and shall contain such terms and conditions as such attorney-in-fact
may approve in such attorney-in-fact's discretion.

	I hereby grant to each such attorney-in-fact full power and
authority to do and perform any and every act and thing whatsoever
requisite, necessary or proper to be done in the exercise of any of
the rights and powers herein granted, as fully to all intents and
purposes as I might or could do if personally present, with full
power of substitution or revocation, hereby ratifying and confirming
all that such attorney-in-fact, or such attorney-in-fact's substitute
or substitutes, shall lawfully do or cause to be done by virtue of this
Power of Attorney and the rights and powers herein granted.
I acknowledge that the foregoing attorneys-in-fact, in serving in such
capacity at my request, are not assuming, nor is the Company assuming,
any of my responsibilities to comply with Section 16 of the
Securities Exchange Act of 1934.

	This Power of Attorney shall remain in effect until I am no
longer required to file Forms 3, 4 and 5 with respect to my holdings
of and transactions in securities issued by the Company, unless earlier
revoked by me in a signed writing delivered to the foregoing attorneys-in-fact.


Dated: _12/15/03________					Signed:   s/Kelly A. Anderson
									      Kelly A. Anderson