1064015--9/28/2010--AMERITRANS_CAPITAL

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{tax, income, asset}

{condition, economic, financial}

{acquisition, growth, future}

{loan, real, estate}

{control, financial, internal}

{cost, contract, operation}

{stock, price, operating}

{investment, property, distribution}

{regulation, change, law}

{personnel, key, retain}

{cost, operation, labor}

{capital, credit, financial}

RISK FACTORS THAT MAY AFFECT FUTURE RESULTS A failure on our part to maintain our status as a BDC would significantly reduce our operating flexibility. Our ability to grow depends on our ability to raise capital. We will be subject to corporate-level income tax if we are unable to qualify as a RIC. We may have difficulty paying our required distributions if we recognize income before or without receiving cash representing such income. Regulations governing our operation as a BDC affect our ability to, and the way in which, we raise additional capital. Most of our investments are not publicly traded and, as a result, there is uncertainty as to the value of our investments. Our ability to achieve our investment objective depends on our senior management s ability to support our investment process; if we were to lose any of our senior management, our ability to achieve our investment objective could be significantly harmed. Declining asset values and illiquidity in the corporate debt markets have adversely affected, and may continue to adversely affect, the fair value of our portfolio investments, reducing the value of our assets. The lack of liquidity in our investments may adversely affect our business. We may experience fluctuations in our quarterly results. Changes in laws or regulations governing our operations, or changes in the interpretation thereof, and any failure by us to comply with laws or regulations governing our operations may adversely affect our business. We have a history of losses and we expect to incur losses for the foreseeable future. If we are unable to achieve profitability, our business will suffer and our stock price is likely to decline. If we fail to increase revenues, we will not achieve or maintain profitability. Our current financing relationships could be terminated and we may not be able to obtain additional financing. We are currently in a period of capital markets disruption and recession and these conditions may not improve in the near future. Economic recessions, including the current global recession, could impair our portfolio companies and harm our operating results. We borrow money to fund our operations, which magnifies the potential for gain or loss on amounts invested, and may increase the risk of investing in us.

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1064015--9/28/2010--AMERITRANS_CAPITAL_CORP