FORM N-SAR
SEMI-ANNUAL REPORT
FOR REGISTERED INVESTMENT COMPANIES
Report for six month period ending: / / (a)
or fiscal year ending: 06/30/98 (b)
Is this a transition report?: (Y/N) N
Is this an amendment to a previous filing: (Y/N) N
Those items or sub-items with a box "/" after the item number should be
completed only if the answer has changed from the previous filing on this
form.
1. A. Registrant Name: Elk Associates Funding Corporation
B. File Number: 811-3786
C. Telephone Number: 212-355-2449
1-800-214-1047
2. A. Street: 747 Third Avenue, 4th Floor
B. City: New York
C. State: New York
D. Zip Code: 10017 Zip Ext:
E. Foreign Country: Foreign Postal Code:
3. Is this the first filing on this form by Registrant? (Y/N) N
4. Is this the last filing on this form by Registrant? (Y/N) N
5. Is Registrant a small business investment company (SBIC) (Y/N) Y
[If answer is "Y" (Yes), complete only items 89 through 110.]
6. Is Registrant a unit investment trust (UIT?) (Y/N) N
[If answer is "Y" (Yes), complete only items 111 through 132.]
7. A. Is Registrant a series or multiple portfolio company? N
[If answer is "N" (No), go to item 8.]
B. How many separate series or portfolios did Registrant have
at the end of the period?
SMALL BUSINESS INVESTMENT COMPANIES
INVESTMENT ADVISER
89. A. X Adviser Name (if any): N
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B. / File number: 801 -
C. / City: State: Zip Code: Zip Ext.
/ Foreign Country: Foreign Postal Code:
89. A. / Adviser Name (if any):
B. / File number: 801 -
C. / City: State: Zip Code: Zip Ext.
/ Foreign Country: Foreign Postal Code:
TRANSFER AGENT
90. A. / Transfer Agent Name (if any):
B. / File number:
C. / City: State: Zip Code: Zip Ext.
/ Foreign Country: Foreign Postal Code:
90. A. / Transfer Agent Name (if any):
B. / File number: -
C. / City: State: Zip Code: Zip Ext.
/ Foreign Country: Foreign Postal Code:
INDEPENDENT PUBLIC ACCOUNTANT
91. A. X Accountant Name: Marcum & Kliegman LLP
B. / City: New York State: NY Zip Code: 10017 Zip Ext. 2027
/ Foreign Country: Foreign Postal Code:
91. A. / Accountant Name:
B. / City: State: Zip Code: Zip Ext.
/ Foreign Country: Foreign Postal Code:
CUSTODIAN
92. A. / Custodian:
B. / City: State: Zip Code: Zip Ext.
C. / Foreign Country: Foreign Postal Code:
D. /Mark one of the following with an "X":
TYPE OF CUSTODY
Bank
Sec.17(f)(1) Member Nat'l Self Foreign Insurance Co. Other
Sec. Exchg. 17f-2 Custodian Sponsor
Rule 17f-1 Rule 17f-5 Rule 26a-2
NOTE: / If self-custody, give name of sakekeeping depository and location of
assets in sub-items 92A and 92B.
E. / Does registrant's custodian maintain some or all of the registrant's
securities in a central depository or book entry system pursuant to
Rule 17f-47? (Y/N)
93. / Does Registrant's adviser(s) have advisory clients other than
investment companies? (Y/N)
94. Family of investment companies information:
A. / Is the Registrant part of a family of investment companies? (Y/N)
B. / If "Y" (Yes), state the number of registered management investment
companies in the family:
(NOTE: Count as a separate company each series of a series company and
each portfolio of a multiple portfolio company; exclude all series of
unit investment trusts from this number.)
C. / Indentify the family using 10 letters: _ _ _ _ _ _ _ _ _ _
(NOTE: In filing this form, use this indentification consistently for
all investment companies in the family including any unit investment
trusts. This designation is for purposes of this form only.)
D. / Is the Registrant a wholly-owned subsidiary of a business development
company ("BDC")? (Y/N)
E. / If "Y" (Yes), identify the BDC as follows:
BDC name:
File number: 2- or 33-
95. Sales, repurchases, and redemptions of Registrant's securities during
the period:
Class of Security
Number of Shares Net
or Principal Consideration
Amount of Debt Received or Paid
($000's omitted) ($000's omitted)
Common Stock:
A./Sales 462 3,003
B./Repurchases
Preferred Stock:
C./Sales
D./Repurchases and redemptions
Debt Securities
E./Sales
F./Repurchases and redemptions
96. Securities of Registrant registered on a National Securities Exchange or
listed on NASDAQ;
Title of each class of securities - Common Stock par value $.01
CUSIP or Ticker
NASDAQ No. Symbol
A./ 287166102 EKFG
B./
C./
FINANCIAL INFORMATION
97. A. / How many months do the answers to items 97 and 98
cover?
12 Months
For period covered by this form
INCOME ($000's omitted)
B.Net interest income
$ 4,109
C.Net dividend income
$
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D.Account maintenance fees
$
E.Net other income
$ 498
EXPENSES
F.Gross advisory fees
$
G.Gross administrator(s) fees
(Negative answers allowed for 97H through 97S)
$
H.Salaries and other compensation
$ 496
I.Shareholder servicing agent fees
$ 11
J.Custodian fees
$ 19
K.Postage
$
L.Printing expenses
$ 9
M.Directors' fees
$ 52
N.Registration fees
$
O.Taxes
$ 3
P.Interest
$ 1,841
Q.Bookkeeping fees paid to anyone performing this service
$ 35
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R.Auditing fees
$ 49
S.Legal fees
$ 337
Expenses (Negative answers allowed on this screen for
97 T through 97W and 97Z only For period covered by this form
($000's omitted)
T.Marketing/distribution payments including payments
pursuant to a Rule 12b-1 plan
$
U.Amortization of organization expenses
$
V.Shareholder meeting expenses
$
W.Other expenses
$ 795
X.Total expenses
$ 3,647
Y.Expense reimbursements
$
Z.Net investment income
$ 960
AA.Realized capital gains
$
BB.Realized capital losses
$ 25 (Non Cash)
CC.1.Net unrealized appreciation during the period
$ 141
2.Net unrealized depreciation during the period
$ 0
DD.Total income dividends for which record date passed
during the period
$ 0
EE.Total capital gains distributions for which period
record date passed during the period
$
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98. Payments per share outstanding during the entire current
period:
A. Dividends from net investment income (.62)
NOTE: show in fractions of a cent if so declared
B. Distributions of capital gains $
C. Other distributions $
NOTE: show in fractions of a cent if so declared
* Negative answer permitted in this field.
** Items 98A and 98B should be of the form mn.nnnn (where n = integer).
_____________
99. Assets, liabilities, shareholders' equity:
As of the end of June 1998
current reporting period
(000's omitted)
A.Cash
$ 1,755
B.Repurchase Agreements
$
C.Short-term debt securities other than repurchase
agreements
$ 41,295
D.Long-term debt securities including convertible debt
$
E.Preferred, convertible preferred and adjustable rate
preferred stock
$
F.Common stock
$
G.Options on equities
$
H.Options on all futures
$
I.Other investments
$629
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J.Receivables from portfolio instruments sold $
K. Receivables from affiliated persons $
L. Other receivables $ 967
M. All other assets $ 754
N. Total assets $ 45,400
* Includes receivables from debtors on sales of assets acquired
in satisfaction of loans of $451.
** Includes assets acquired in satisfaction of loans of $400.
As of the end of June, 1998
current reporting period
(000's omitted except for per share amounts and number of accounts)
O.Payables for portfolio instruments purchased
$
P.Amounts owned to affiliated persons
$
Q.Senior long-term debt
$ 22,085
R.All other liabilities
$ 9,620
S.Senior equity
$
T.Net assets of common shareholders
$ 13,695
U.Number of shares outstanding
$ 1,746
V.Net asset value per share (to nearest cent)
$ 7.29**
W.Mark-to-market net asset value per share for
money market funds only (to 4 decimals)
$ N/A**
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X.Total number of shareholder accounts
$ 287 registered and approximately 97 in
Broker name
Y.Total value of assets in segregated accounts
$ N/A
100.Monthly average net assets during current
reporting period ($000's omitted)
$ 12,364
101.Market price per share at end of period
$ ***
* Net asset value per share must be of the form nnn.nn (where n = integer).
** Value must be of the form nnn.nnnn (where n = integer).
*** On June 30, 1998, the closing bid quotation and the closing ask
quotation for the Common Stock, as reported by the National
Quotation Bureau, Incorporated, were 9.75 and 11.25 respectively.
****Does not include shares held in street name.
102.A.Is the Registrant filing any of the following attachments
with the current filing of Form N-SAR?
Y
NOTE: If answer is "Y" (Yes), mark those items below being filed
as an attachment to this form or incorporated by reference.
Y
B.Matters submitted to a vote of security holders
Y
C.Policies with respect to security investments
N
D.Legal proceedings
N
E.Changes in security for debt
N
F.Defaults and arrears on senior securities
N
G.Changes in control of Registrant
N
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H.Terms of new or amended securities
N
I.Revaluation of assets or restatement of capital share account
N
J.Changes in Registrant's certifying accountant
N
K.Changes in accounting principles and practices
N
L.Mergers
N
M. Actions required to be reported pursuant to Rule 2a-7
N
N. Transactions effected pursuant to Rule 10f-3
N
O.Information required to be filed pursuant to existing
exemptive orders
N
Attachment information (Cont. on Screen 53)
Attachment information (Cont. from Screen 52)
102.P.1.Exhibits
N
2.Any information called for by instructions to sub-item 102 P2
N
3.Any information called for by instructions to sub-item 102 P3
N
103./Does the Registrant have any wholly-owned investment company
subsidiaries whose operating & financial data are consolidated
with that of Registrant in this report? (Y/N)
N
[If answer is "N" (No), go to item 105]
104./List the "811" numbers and names of Registrant's wholly-owned
investment company subsidiaries consolidated in this report.
NONE
811 Numbers Subsidiary Name
<PAGE>
For period ending 6/30/98 If filing more than one
_______ Page 46, "X" box _______
File number 811-3786
________
ANNUAL SUPPLEMENT
Page 53 is to be filed only once each year at the end of
Registrant's fiscal year.
105. Fidelity bond(s) in effect at the end of period:
A_X_Insurer Name Policy # B2746229 Reliance Insurance Company
B_/_Second Insurer
C_/_Aggregate face amount of coverage for Registrant on all
bonds on which it is named as an insured ($000's omitted)
_________________________________________________________ _____
106. A_/_Is the bond part of a joint fidelity bond(s)
shared with other investment companies or other entities? _____
y/n
B_/_If the answer to 106A is "Y" (yes), how many other
investment companies or other entities are covered by the
bond?
__________________________________________________________ _____
NOTE: Count each series as a separate investment company. y/n
107. A_/_Does the mandatory coverage of the fidelity bond
have a deductible?_________________________________________ _____
y/n
B_/_If the answer to 107A is "Y" (yes), what is the
amount of the deductible? _________________________________ _____
y/n
108. A_/_ Were any claims with respect to this Registrant
filed under the bond during the period?___________________ _____
y/n
B_/_If the answer to 108A is "Y" (yes), what was the
total amount of such claim(s)?_____________________________ $_____
109. A_/_Were any losses incurred with respect to this
Registrant that could have been filed as a claim under the
fidelity bond but were not?________________________________ _____
y/n
B_/_If the answer to sub-item 109A is "Y" (yes), what
was the total amount of such losses? ($000's omitted)______ $_____
110. A_/_Are Registrant's officers and directors covered as
officers and directors of Registrant under any errors and
omissions insurance policy owned by the Registrant or any one
else?______________________________________________________ _____
y/n
B_/_Were any claims filed under such policy during the
period with respect to Registrant?_________________________ _____
y/n
SIGNATURE PAGE TO
FORM N-SAR FOR
ELK ASSOCIATES FUNDING CORPORATION
FOR THE TWELVE MONTHS ENDED
JUNE 30, 1998
<PAGE>
This report is signed on behalf of the Registrant in the City of New York
on the 29th day of AUGUST, 1998.
ELK ASSOCIATES FUNDING CORPORATION
BY: /s/ GARY C. GRANOFF
----------------------
GARY C. GRANOFF
PRESIDENT
WITNESS:
/s/ MARGARET CHANCE
- --------------------
MARGARET CHANCE
SECRETARY
ELK\FORMNSAR.F96
