Power of Attorney

	I, John D. Firestone, a Director of Allied Capital
Corporation (the "Company"),
hereby authorize and designate each of Kelly A. Anderson,
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: __10/22/04________		Signed: ___John D. Firestone_____