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                                                                      EXHIBIT 23



                      CONSENT OF INDEPENDENT ACCOUNTANTS



As independent accountants, we hereby consent to the incorporation by reference
in this Form 10-K of our report dated February 2, 1996 included in Allied
Capital Corporation II's Annual Report to stockholders. It should be noted that
we have not audited any financial statements of the company subsequent to
December 31, 1995 or performed any audit procedures subsequent to the date of
our report.


                                                 MATTHEWS, CARTER AND BOYCE


McLean, Virginia
March 22, 1996
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                      CONSENT OF INDEPENDENT ACCOUNTANTS



As independent accountants we hereby consent to the incorporation by reference
in the registration statement on Form S-8 File No.33-78392, of our report 
dated February 2, 1996 incorporated by reference in Allied Capital Corporation 
II's Form 10-K for the year ended December 31, 1995 and to all references to 
our Firm included in such registration statement.


                                                 MATTHEWS, CARTER AND BOYCE


McLean, Virginia
March 22, 1996