Ownership Submission
FORM 3
 UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

INITIAL STATEMENT OF BENEFICIAL OWNERSHIP OF SECURITIES

Filed pursuant to Section 16(a) of the Securities Exchange Act of 1934, Section 17(a) of the Public Utility Holding Company Act of 1935 or Section 30(h) of the Investment Company Act of 1940
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(Print or Type Responses)
1. Name and Address of Reporting Person *
  Kuntz Norma Rose
 2. Date of Event Requiring Statement (Month/Day/Year)
08/27/2008		 3. Issuer Name and Ticker or Trading Symbol
ALLIED CAPITAL CORP [ALD]
(Last)
(First)
(Middle)
1919 PENNSYLVANIA AVENUE, NW, 3RD FLOOR		 4. Relationship of Reporting Person(s) to Issuer
(Check all applicable)
_____ Director _____ 10% Owner
__X__ Officer (give title below) _____ Other (specify below)
EVP & Chief Valuation Officer
 5. If Amendment, Date Original Filed(Month/Day/Year)
(Street)

WASHINGTON, DC 20006		 6. Individual or Joint/Group Filing(Check Applicable Line)
_X_ Form filed by One Reporting Person
___ Form filed by More than One Reporting Person
(City)
(State)
(Zip)
Table I - Non-Derivative Securities Beneficially Owned
1.Title of Security
(Instr. 4)		 2. Amount of Securities Beneficially Owned
(Instr. 4)		 3. Ownership Form: Direct (D) or Indirect (I)
(Instr. 5)		 4. Nature of Indirect Beneficial Ownership
(Instr. 5)
Common Stock 1,120
D
 
Common Stock 1,249
I
by 401K
Common Stock 1,627
I
spouse 401(k)

Reminder: Report on a separate line for each class of securities beneficially owned directly or indirectly. SEC 1473 (7-02)
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Table II - Derivative Securities Beneficially Owned (e.g., puts, calls, warrants, options, convertible securities)
1. Title of Derivative Security
(Instr. 4)		 2. Date Exercisable and Expiration Date
(Month/Day/Year)		 3. Title and Amount of Securities Underlying Derivative Security
(Instr. 4)		 4. Conversion or Exercise Price of Derivative Security 5. Ownership Form of Derivative Security: Direct (D) or Indirect (I)
(Instr. 5)		 6. Nature of Indirect Beneficial Ownership
(Instr. 5)
Date Exercisable Expiration Date Title Amount or Number of Shares
Incentive Stock Option (right to buy)   (1) 02/01/2015 Common Stock 8,710 $ 22.96 D  
Incentive Stock Option (right to buy)   (2) 08/03/2015 Common Stock 3,635 $ 27.51 D  
Incentive Stock Option (right to buy)   (3) 03/11/2014 Common Stock 13,800 $ 28.98 D  
Incentive Stock Option (right to buy)   (4) 05/15/2014 Common Stock 3,380 $ 29.58 D  
Incentive Stock Option (right to buy)   (1) 02/01/2015 Common Stock 13,065 $ 22.96 I by Spouse
Incentive Stock Option (right to buy)   (2) 08/03/2015 Common Stock 10,905 $ 27.51 I by Spouse
Non-Qualified Stock Option (right to buy)   (1) 02/01/2015 Common Stock 26,290 $ 22.96 D  
Non-Qualified Stock Option (right to buy)   (2) 08/03/2015 Common Stock 96,365 $ 27.51 D  
Non-Qualified Stock Option (right to buy)   (3) 03/11/2014 Common Stock 36,200 $ 28.98 D  
Non-Qualified Stock Option (right to buy)   (4) 05/15/2014 Common Stock 46,620 $ 29.58 D  
Non-Qualified Stock Option (right to buy)   (1) 02/01/2015 Common Stock 1,935 $ 22.96 I by Spouse
Non-Qualified Stock Option (right to buy)   (2) 08/03/2015 Common Stock 39,095 $ 27.51 I by Spouse

Reporting Owners

Reporting Owner Name / Address Relationships
Director 10% Owner Officer Other
Kuntz Norma Rose
1919 PENNSYLVANIA AVENUE, NW
3RD FLOOR
WASHINGTON, DC 20006		       EVP & Chief Valuation Officer  

Signatures

s/ Norma R. Kuntz 09/02/2008
**Signature of Reporting Person Date

Explanation of Responses:

* If the form is filed by more than one reporting person, see Instruction 5(b)(v).
** Intentional misstatements or omissions of facts constitute Federal Criminal Violations. See 18 U.S.C. 1001 and 15 U.S.C. 78ff(a).
(1) The option granted on February 1, 2008, vests in three equal installments on 6/30/09, 6/30/10 and 6/30/11.
(2) The option granted on August 3, 2005, vested in three equal installments on 6/30/06, 6/30/07 and 6/30/08.
(3) The option granted on March 11, 2004, vested in four equal installments on 6/30/2004, 6/30/2005, 6/30/2006 and 6/30/2007
(4) The option granted on May 15, 2007, vests in three equal installments on 6/30/07, 6/30/08 and 6/30/09.

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