UUUFor Immediate Release

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

  AMERITRANS ANNOUNCES DIRECTOR RESIGNATIONS AND APPOINTMENT OF NEW DIRECTORS

New  York, NY, December 22, 2005 - Ameritrans Capital Corporation (NASDAQ: AMTC,
AMTCP) today announced that in order to remain in compliance with the Securities
Exchange  Act  of  1934,  as  amended,  and  the Investment Company Act of 1940,
requiring a majority of the Directors of the Company  be  "disinterested" and to
effectuate  certain  additions  to  the Board, Paul Creditor and  Lee  Forlenza,
resigned  from  the Board effective as  of  December  22,  2005.   To  fill  the
vacancies, the Board appointed Michael Feinsod and Ivan Wolpert, effective as of
December 22, 2005.   Mr.  Feinsod and Mr. Wolpert will stand for election to the
Board by the shareholders of  the  Company  at  the  next  annual meeting of the
Company.

Mr.  Creditor  and  Mr.  Forlenza also resigned from the Board of  Directors  of
Ameritrans'  wholly  owned  subsidiary,   Elk   Associates  Funding  Corporation
effective as of December 22, 2005.  Mr. Feinsod and  Mr. Wolpert are nominees to
the Board of Elk Associates Funding Corporation pending approval by the SBA.

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,
4PPPthPPP 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.