For Immediate Release

FROM:
Ameritrans Capital Corporation
For more information Contact:
Gary C. Granoff
(800) 214-1047

            AMERITRANS ANNOUNCES INITIAL CLOSING OF PRIVATE OFFERING

New  York,  NY, December 6, 2005 - Ameritrans Capital Corporation (NASDAQ: AMTC,
AMTCP) today announced that the Company completed an initial closing pursuant to
its July 29,  2005  private  offering  of  the  Company's shares of common stock
$.0001 par value to a limited number of "accredited  investors," as that term is
defined in Rule 506 of Regulation D, promulgated under  the  Securities  Act  of
1933, as amended.  The Company issued 653,347 shares for gross proceeds totaling
$3,822,080.   For  every  four  (4)  shares purchased, the Company issued to the
investors one (1) warrant, exercisable  for  five  (5)  years  from  the date of
issuance, to purchase one (1) share at an exercise price of $6.44 per  share.  A
total  of  163,336  warrants  were issued.  The securities sold in this offering
have not been registered with the  Securities Exchange Commission and may not be
offered  or  sold in the United States  absent  registration  or  an  applicable
exemption from registration requirements.

Ameritrans Capital  Corporation is a specialty finance company engaged in making
loans  to  and  investments  in  small  businesses.   Ameritrans'  wholly  owned
subsidiary, Elk Associates  Funding  Corporation,  was  licensed  by  the United
States  Small  Business  Administration  as  a Small Business Investment Company
(SBIC) in 1980.  The Company maintains its offices  at  747  Third  Avenue,  4th
Floor, New York, NY 10017.

This  announcement contains forward-looking statements within the meaning of the
Private  Securities  Litigation Reform Act of 1995.  Such statements are subject
to certain risks and uncertainties  that  could  cause  actual results to differ
materially  from those presently anticipated or projected.   Ameritrans  Capital
Corporation cautions  investors  not  to place undue reliance on forward-looking
statements, which speak only as to management's expectations on this date.