Washington, D.C. 20549

                                   FORM 12b-25

                           NOTIFICATION OF LATE FILING

        (Check One):
        |_| Form 10-K       |_| Form 11-K     |_| Form 20-F     |X| Form 10-Q

        For Period Ended: September 30, 2007

     |_|  Transition Report on Form 10-K

     |_|  Transition Report on Form 20-F

     |_|  Transition Report on Form 11-K

     |_|  Transition Report on Form 10-Q

     |_|  Transition Report on Form N-SAR

        For the Transition Period Ended: ____________________________

     Nothing in this form shall be construed to imply that the Commission has
     verified any information contained herein.

     If the notification relates to a portion of the filing checked above,
     identify the Item(s) to which the notification relates:____________________

                                     PART I
                             REGISTRANT INFORMATION

                          Capital Southwest Corporation
                             Full Name of Registrant

                            Former Name if Applicable

                          12900 Preston Road Suite 700
                                 Dallas TX 75230
            Address of Principal Executive Office (Street and Number)

                                     PART II
                             RULES 12b-25(b) AND (c)

     If the subject  report could not be filed  without  unreasonable  effort or
expense  and  the  registrant  seeks  relief  pursuant  to Rule  12b-25(b),  the
following should be completed. (Check appropriate box.)

|X|  (a) The reasons  described  in  reasonable  detail in Part III of this form
     could not be eliminated without unreasonable effort or expense;

|X|  (b) The subject annual report,  semi-annual  report,  transition  report on
     Form 10-K,  20-F,  11-K or N-SAR, or portion  thereof,  will be filed on or
     before the 15th  calendar day  following  the  prescribed  due date; or the
     subject  quarterly  report or  transition  report  on Form 10-Q or  portion
     thereof  will be filed on or before the fifth  calendar day  following  the
     prescribed due date; and

|_|  (c) The accountant's  statement or other exhibit required by Rule 12b-25(c)
     has been attached if applicable.

                                    PART III

     State below in  reasonable  detail the reasons why Form 10-K,  11-K,  20-F,
10-Q,  N-SAR, or the transition  report or portion  thereof,  could not be filed
within the prescribed time period.

     Capital Southwest  Corporation (the "Company") will delay the filing of its
second quarter  report on Form 10-Q,  for the period ending  September 30, 2007,
pending a review of its deferred taxes on unrealized appreciation on investments
and the related  disclosures.  The impact on current and prior period  financial
statements has not yet been determined.

     The Company and its audit committee have notified its independent auditors,
Grant  Thorton,  LLC,  of this  matter  and will  work  closely  with  them,  as
appropriate.  The Company  undertakes the  responsibility to file such report no
later than five days after its original date.

                                     PART IV
                                OTHER INFORMATION

(1)  Name  and  telephone  number  of  person  to  contact  in  regard  to  this

Gary L. Martin                                       972-233-8242
(Name)                                          (Area Code) (Telephone Number)

(2)  Have all other periodic  reports  required under Section 13 or 15(d) of the
     Securities Exchange Act of 1934 or Section 30 of the Investment Company Act
     of 1940 during the preceding 12 months or for such shorter  period that the
     registrant was required to file such report(s) been filed? If answer is no,
     identify report(s). |X| Yes |_| No

(3)  Is it anticipated  that any significant  change in results of operation for
     the corresponding  period for the last fiscal year will be reflected by the
     earnings  statements  to be  included  in the  subject  report  or  portion
     thereof? |_| Yes |X| No

                         Capital Southwest Corporation

     Has caused this  notification to be signed on its behalf by the undersigned
hereunto duly authorized.

Date:  November 9, 2007                      By:   /s/ Gary L. Martin