Statement of Privacy Policy

                                                                      July, 2001

Dear Valued Customer:

Ameritrans Capital Corp., Elk Associates Funding Corporation and EAF Holding
Corp collectively, ("we") are committed to maintaining the privacy of our
current and prospective individual clients and investors ("you). We recognize
that you entrust us with important personal financial information, and we assure
you that protecting and safeguarding this information is one of our highest
priorities.

In connection with making available loans and providing other related investment
products and services, we obtain nonpublic personal information about our
individual customers. This information may include your name, address, e-mail
address, social security number, account number, financial situation, credit
history and other personal information.

We may collect nonpublic information about you from the following sources:

*    Information we receive on applications, forms, questionnaires, web sites,
     agreements or in the course of establishing a customer relationship, or
     stockholder relationship.

*    Information about your transactions with us, our affiliates, or others

*    Information we obtain as a result of transactions between or among our
     parent or subsidiary companies.

*    Information that we receive from consumer reporting agencies

We do not disclose any nonpublic personal information about our customers or
former customers to any nonaffiliated parties, except as permitted by law, or in
the event we sell a particular loan or investment or sell a participation
interest in any loan or investment we make.

We restrict access to nonpublic personal information about you to those
employees, agents or other parties who need to know that information to provide
our products or services to you. We maintain procedural safeguards to guard your
nonpublic personal information. If you have any questions about our policy,
please contact us.