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<SEC-DOCUMENT>0001047469-99-014132.txt : 19990412
<SEC-HEADER>0001047469-99-014132.hdr.sgml : 19990412
ACCESSION NUMBER:		0001047469-99-014132
CONFORMED SUBMISSION TYPE:	SC 13D
PUBLIC DOCUMENT COUNT:		1
FILED AS OF DATE:		19990409

SUBJECT COMPANY:	

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			APPLIANCE RECYCLING CENTERS OF AMERICA INC /MN
		CENTRAL INDEX KEY:			0000862861
		STANDARD INDUSTRIAL CLASSIFICATION:	WHOLESALE-MISC DURABLE GOODS [5090]
		IRS NUMBER:				411454591
		STATE OF INCORPORATION:			MN
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		SC 13D
		SEC ACT:		
		SEC FILE NUMBER:	005-42213
		FILM NUMBER:		99590324

	BUSINESS ADDRESS:	
		STREET 1:		7400 EXCELSIOR BLVD
		CITY:			MINNEAPOLIS
		STATE:			MN
		ZIP:			55426-4502
		BUSINESS PHONE:		6129309000

	MAIL ADDRESS:	
		STREET 1:		7400 EXCELSIOR BLVD
		CITY:			NINNEAPOLIS
		STATE:			MN
		ZIP:			554264517

FILED BY:		

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			MEDALLION CAPITAL INC
		CENTRAL INDEX KEY:			0000822874
		STANDARD INDUSTRIAL CLASSIFICATION:	FINANCE SERVICES [6199]
		IRS NUMBER:				521139951
		STATE OF INCORPORATION:			MN
		FISCAL YEAR END:			0630

	FILING VALUES:
		FORM TYPE:		SC 13D

	BUSINESS ADDRESS:	
		STREET 1:		TWO APPLETREE SQ
		STREET 2:		STE 335
		CITY:			BLOOMINGTON
		STATE:			MN
		ZIP:			55425
		BUSINESS PHONE:		6128543007

	MAIL ADDRESS:	
		STREET 1:		TWO APPLETREE SQUARE
		STREET 2:		STE 335
		CITY:			BLOOMINGTON
		STATE:			MN
		ZIP:			55425

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	CAPITAL DIMENSIONS INC
		DATE OF NAME CHANGE:	19970522
</SEC-HEADER>
<DOCUMENT>
<TYPE>SC 13D
<SEQUENCE>1
<DESCRIPTION>SC 13D
<TEXT>

<PAGE>

                                    UNITED STATES
                          SECURITIES AND EXCHANGE COMMISSION
                                WASHINGTON, D.C. 20549



                                     SCHEDULE 13D


                      UNDER THE SECURITIES EXCHANGE ACT OF 1934


                     Appliance Recycling Centers of America, Inc.
                     --------------------------------------------
                                   (Name of Issuer)


                              Common Stock, no par value
                              --------------------------
                            (Title of Class of Securities)


                                     03814F 10 6
                                   ----------------
                                    (CUSIP Number)

                                    Dean Pickerell
                               Medallion Capital, Inc.
                             7831 Glenroy Road, Suite 480
                                Minneapolis, MN 55439
                                    (612) 831-0771
                                           
          -----------------------------------------------------------------
     (Name, Address and Telephone Number of Person Authorized to Receive Notices
                                 and Communications)


                                  September 10, 1998
                    ----------------------------------------------
               (Date of Event which Requires Filing of this Statement)

If the filing person has previously filed a statement on Schedule 13G to report
the acquisition which is the subject of this Schedule 13D, and is filing this
schedule because of Section 240.13d-1(e), 240.13(d)-1(f) or 240.13d-1(g), check
the following box [ ].


                                     Page 1 of 5
<PAGE>

                                                  PAGE    2    OF    5    PAGES
                                                       -------    -------


- ---------------------
CUSIP NO.  03814F 10 6
- ---------------------
- --------------------------------------------------------------------------------
1.   NAME OF REPORTING PERSON
     S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON

     Medallion Capital, Inc.
- --------------------------------------------------------------------------------
2.   CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP*                 (a) [   ]
                                                                       (b) [   ]
- --------------------------------------------------------------------------------
3.   SEC USE ONLY

- --------------------------------------------------------------------------------
4.   SOURCE OF FUNDS*

     OO
- --------------------------------------------------------------------------------
5.   CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
     PURSUANT TO ITEMS 2(d) OR 2(e)                                        [   ]

- --------------------------------------------------------------------------------
6.   CITIZENSHIP OR PLACE OF ORGANIZATION

     Minnesota
- --------------------------------------------------------------------------------
                         7.   SOLE VOTING POWER

                              700,000
         NUMBER OF            --------------------------------------------------
          SHARES         8.   SHARED VOTING POWER
       BENEFICIALLY        
         OWNED BY                  
           EACH               --------------------------------------------------
        REPORTING        9.   SOLE DISPOSITIVE POWER
          PERSON           
           WITH               700,000
                              --------------------------------------------------
                         10.  SHARED DISPOSITIVE POWER

                    
- --------------------------------------------------------------------------------
11.  AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON

     700,000
- --------------------------------------------------------------------------------
12.  CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES  [  ]
- --------------------------------------------------------------------------------
13.  PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)

     36.1% 

- --------------------------------------------------------------------------------
14.  TYPE OF REPORTING PERSON*

     IC
- --------------------------------------------------------------------------------


                                     Page 2 of 5
<PAGE>

                                                  PAGE    3    OF    5    PAGES
                                                       -------    -------


ITEM 1.   SECURITY AND ISSUER.

     This statement relates to the Common Stock, no par value (the "Common
Stock"), of Appliance Recylcing Centers of America, Inc. ("ARCA" or "Issuer"), a
Minnesota corporation, with its principal executive offices located at 7400
Excelsior Blvd, Minneapolis, Minnesota 55426.

ITEM 2.   IDENTITY AND BACKGROUND.

     A)   Medallion Capital, Inc., ("Medallion" or the "Reporting Person") a
          Minnesota corporation and wholly-owned subsidiary of Medallion
          Financial, Inc., a Delaware corporation.

     B)   7831 Glenroy Road, Suite 480, Minneapolis, Minnesota 55439

     C)   N/A

     D)   N/A

     E)   N/A

     F)   N/A

ITEM 3.   SOURCE AND AMOUNT OF FUNDS OR OTHER CONSIDERATION.

     Medallion is deemed the beneficial owner of the 700,000 shares of ARCA
Common Stock pursuant to its acquisition of a stock purchase warrant (the
"Warrant") entitling it to subscribe for and purchase such shares at the price
of $2.50 per share (the "Warrant Price").  ARCA issued the Warrant to Medallion
pursuant to, and subject to the terms and conditions of, a loan agreement
between the parties, as described in Item 4 below (the "Loan Agreement").  Other
than with respect to the Warrant issued under the Loan Agreement, Medallion did
not acquire any shares of Common Stock or any additional securities representing
shares of Common Stock of ARCA.  A certain portion of the legal fees and costs
in connection with the execution of the Loan Agreement were initially paid by
Medallion and later reimbursed by ARCA. The remainder of the legal fees and
costs not reimbursed were paid from the working capital of Medallion.

ITEM 4.  PURPOSE OF TRANSACTION.

     On September 10, 1998, Medallion entered into the Loan Agreement with ARCA.
Pursuant to the Loan Agreement, ARCA borrowed from Medallion a total of
$3,500,000 (the "Loan") and issued to Medallion the Warrant entitling it to
purchase upon exercise 700,000 shares of ARCA Common Stock.  The Warrant is
exercisable beginning any time after September 10, 1998 at an exercise price of
$2.50 per share and shall terminate, if not exercised, upon the latter of the
end of the seventh year or two years after the Loan is paid in full. 

     The Loan Agreement and Warrant are being filed as Exhibits 99.1 and 99.2,
respectively, to this Schedule 13D and incorporated by reference herein.


                                     Page 3 of 5
<PAGE>

                                                  PAGE    4    OF    5    PAGES
                                                       -------    -------


     Medallion has acquired the securities described in Item 5 below for
investment purposes. 

     Medallion may, from time to time (1) acquire additional shares of Common
Stock (subject to availability at prices deemed favorable to Medallion) in the
open market, in privately negotiated transactions, or otherwise, or (2) attempt
to dispose of shares of Common Stock in the open market, in privately negotiated
transactions or otherwise.

     Except as set forth above, Medallion has no present plans or intentions
that would result in or relate to any of the transactions described in
subparagraphs (a) through (j) of Item 4 of Schedule 13D.  

ITEM 5.   INTEREST IN SECURITIES OF THE ISSUER.

     (a)  Pursuant to the terms of the Warrant and Loan Agreement, Medallion may
          be deemed to be the beneficial owner of 700,000 shares of ARCA common
          stock, representing approximately 36.1% of the outstanding common
          stock of ARCA. 

     (b)  The responses of Medallion to Items (7) through (11) of the portions
          of the cover page of this Schedule which relate to beneficial
          ownership of shares of Common Stock are incorporated herein by
          reference.

     (c)  Other than the transactions described in Item 3 above, Medallion has
          not effected any transactions in the Common Stock during the past
          sixty days.

     (d)  Not applicable.

     (e)  Not applicable.

ITEM 6.   CONTRACTS, ARRANGEMENTS, UNDERSTANDINGS OR RELATIONSHIPS WITH RESPECT 
          TO SECURITIES OF THE ISSUER.

     Other than the Warrant and the Loan Agreement, which include registration
rights, referred to in Items 4 and 5 and being filed herewith, there are no
contracts, arrangements, understandings or relationships between Medallion and
any person with respect to any securities of the Company. 

ITEM 7.   MATERIAL TO BE FILED AS EXHIBITS.

     Attached to this statement and filed with this statement as exhibits are
the following documents:

      EXHIBIT 99.1: Loan Agreement between Medallion Capital, Inc. and Appliance
                    Recycling Centers of America, Inc. dated September 10, 1998,
                    filed as Exhibit 10.1 to Appliance Recycling Centers of
                    America, Inc.'s Form 10-Q for the fiscal quarter ended
                    October 3, 1998 (File No. 0-19621) and incorporated herein
                    by reference. 

      EXHIBIT 99.2: Stock Purchase Warrant of Appliance Recycling Centers of
                    America, Inc. in favor of Medallion Capital, Inc. for
                    700,000 shares of Common Stock, filed as Exhibit 10.14 to
                    Appliance Recycling Centers of American, Inc.'s Form 10-K
                    for the fiscal year ended January 2, 1999 and incorporated
                    herein by reference. 


                                     Page 4 of 5
<PAGE>

                                                  PAGE    5    OF    5    PAGES
                                                       -------    -------


                                      SIGNATURE

     After reasonable inquiry and to the best of my knowledge and belief, I
certify that the information set forth in this statement is true, complete and
correct.
   

April 5, 1999                           MEDALLION CAPITAL, INC.

                                        /s/ Dean R. Pickerell
                                        ----------------------------------------
                                            Dean R. Pickerell
                                            Chief Financial Officer


                                     Page 5 of 5
</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
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