EMPLOYMENT AGREEMENT

      THIS AGREEMENT is made and entered into as of the 8th day of October,
1997, by and among Business Loan Center, Inc., a Delaware corporation with
offices at 645 Madison Avenue, New York, N.Y., ("Company" or "BLC") and Jennifer
Napier residing at 50 West 72nd Street, New York, N.Y. ("Executive").

      WHEREAS, the Company is a wholly owned subsidiary of BLC Financial
Services, Inc., a Delaware Corporation ("Financial") with an office at 645
Madison Avenue, New York, New York; and

      WHEREAS, Company is in the business of originating, underwriting and
processing commercial loans, including but not limited to loans that fall within
the parameters of the 7(a) Program of the U.S. Small Business Administration
("7(a) Loans") and loans that fall within the parameters of the Department of
Agriculture's Rural Development guaranteed loan program ("B & I Loans"), which
loans are funded by or through Financial or its subsidiaries, including Business
Loan Center, Inc. a Delaware Corporation ("BLC"), BLC Commercial Capital
Corporation, a Florida Corporation and BLC Capital Corporation, a Delaware
corporation; and

      WHEREAS, Company originates, underwrites and processes the aforementioned
commercial loans exclusively for Financial and its subsidiaries, Business Loan
Center, Inc. ("BLC"), BLC Commercial Capital Corp. ("Commercial"), BLC Capital
Corp. ("Capital") and any other subsidiaries or affiliates that may hereafter be
formed; and

      WHEREAS, Executive has been employed by the Company and Financial since
1994; and

      WHEREAS, Executive's experience as set forth above is of great value to
the Company, Financial and its other subsidiaries; and

      WHEREAS, Company desired to employ Executive for the Term set forth herein
and Executive desires to accept such employment on an exclusive basis; and

<PAGE>

      WHEREAS, in view of Executive's experience and anticipated services for
Company, Executive acknowledges the necessity and reasonableness of her covenant
against disclosure of trade secrets of, and unfair competition with, Company and
restrictions on his future business activities;

      NOW, THEREFORE, in consideration of the premises and mutual promises set
forth herein, Company, Financial and Executive agree as follows:

      (a) Employment and Term.

            Company shall employ Executive for a period of five (5) years,
commencing on the effective date hereof and ending September 30, 2002: ("Initial
Period"), subject to the termination provisions hereinafter set forth. This
Agreement shall be automatically deemed extended for additional successive
one-year periods, unless Financial or Executive notifies the other at least 90
days prior to the end of the Initial Period or any extension thereof, that it or
she does not wish to extend the Agreement.

      (b) Compensation.

            (i) As compensation for Executive's performance of all required
services hereunder, and conditioned upon her full, faithful and diligent
performance of all promises and undertakings herein, Company shall pay to
Executive the sum of:

                  (a) For the first year of the term - One Hundred Thousand
                  Dollars ($100,000) per year. Said compensation shall be
                  payable in bi-weekly installments, or in accordance with
                  Company's regular payroll practices for other senior
                  executives of Financial and BLC.

                  (b) For the second year of the term - One Hundred Twenty Five
                  Thousand Dollars ($125,000) per year. Said compensation shall
                  be payable in biweekly installments, or in accordance with
                  Company's regular payroll practices for other senior
                  executives of Financial and BLC.

                  (c) For the third year of the term - One Hundred Fifty
                  Thousand Dollars ($150,000) per year. Said compensation shall
                  be payable in bi-weekly installments, or in accordance with
                  Company's regular payroll practices for other senior
                  executives of Financial and BLC.

                  (d) For the fourth and fifth years of the term - One Hundred
                  Seventy Five Thousand Dollars ($175,000) per year. Said
                  compensation shall be payable in bi-weekly installments, or in
                  accordance with Company's regular payroll practices for other
                  senior executives of Financial and BLC.

            (ii) All payments to be made by Company to Executive hereunder shall
be subject to such tax, FICA or other deductions or withholdings as Company
shall be required to make by law 


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<PAGE>

or which Company uniformly makes as a matter of policy from compensation paid to
other employees.

            (iii) As further compensation for Executive's performance of all
required services hereunder, and conditioned upon his full, faithful and
diligent performance of all promises and undertakings herein, Executive shall be
granted options to purchase 100,000 shares of the $.01 par value common stock
of Financial, pursuant to the Option Agreement annexed as Exhibit I.

            (iv) From time to time, Financial's Board of Directors may elect to
increase Executive's compensation hereunder, and to grant bonuses and stock
options for Financial stock to Executive based on the Company's, Financial's and
Executive's performance.

            (v) During the term of the Executive's employment hereunder,
employee benefits, including medical insurance, will be provided to Executive in
accordance with programs at BLC then available to the BLC's executive employees.
The Executive also shall be entitled to participate in all the Company's and the
Financial's profit sharing, pension, retirement, deferred compensation and
savings plans, as the same may be amended and in effect from time to time, at
levels and having interests commensurate with all of Company's and the
Financial's executive employees.

            (viii) Executive shall be entitled to reasonable periods of
vacation, not to exceed four (4) weeks each year, to be taken at time or times
which do not unreasonably interfere with the performance of her duties
hereunder.

      (c) Office, Title and Duties.

            Executive shall be Company's Treasurer and Chief Financial Officer,
the Treasurer and Chief Financial Officer of Financial and Capital & Commercial.
Executive will devote all of her skill, knowledge and working time (except for
(i) reasonable vacation time and absence for sickness or similar disability and
(ii) to the extent that it does not interfere with the performance of the
Executive's duties hereunder, such reasonable time as may be devoted to service
on boards of directors of civic organizations, civic board of fulfillment of
other civic responsibilities) to the conscientious performance of the duties of
such positions. Executive may retain whatever capital stock of any publicly
traded company she owns as of the date hereof, Executive shall not acquire after
the date hereof the outstanding capital stock of any publicly traded company
that competes with the Company nor have any financial interest in any privately
held business, company, or investment, that competes with Company without the
prior written consent of Financial. Executive shall exercise all powers and
duties consistent with her position, as well as such powers and duties as may be
delegated or assigned to him from time to time by the Board of Directors of
Company and/or Financial. Executive, without additional compensation, will, if
requested, serve as an officer and/or director, of Company, Financial,
Commercial, BLC, Capital and/or any hereinafter formed subsidiaries, if she is
so elected or designated. Executive agrees to discharge the above-described
powers and duties in a diligent and professional manner and shall render such
other services as may be requested from time to time by the Board of Directors
of Company and/or Financial upon 


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<PAGE>

reasonable advance notice. Executive shall use her best efforts to operate the
Company in a profitable manner and maximize the profits generated by the
Company, Financial, Commercial, BLC and Capital. Executive agrees to travel as
reasonably required in performing her functions hereunder. The duties and
obligations of Executive as set forth hereinabove and elsewhere in the Agreement
are collectively referred to as Duties. BLC, Financial, Commercial, Capital and
any later formed subsidiaries of Financial are sometimes hereinafter referred to
as Affiliates.

      (d) Covenants Against Disclosure of Trade Secrets and
          Unfair Competition; Non-Competition

      To preserve for Company and its Affiliates the benefit of the goodwill and
ongoing value of Company's and Affiliates' businesses, Executive covenants and
agrees to deliver promptly to Company upon termination of her employment by
Company, or at any other time Company may so request, all memoranda, notes,
records, reports, mailing lists, customer lists, databases and other documents
(and all copies thereof) relating to Company's business, which Executive
obtained from the Company or Affiliates while serving or acting on behalf of
Company or Affiliates.

            During the term of the Agreement and for two years after a
termination of the Agreement pursuant to paragraph (f) (i) herein below (the
"Non-Competition Term"), in order to preserve the goodwill and ongoing business
value of Company and Affiliates, and in view of Executive's experience and
access to unique and proprietary information of the current and proposed
business activities of Company and Affiliates, Executive will not directly or
indirectly:

            (i)   Disclose to any third party any of Company's or Affiliates'
                  trade secrets as they exist from time to time, or any of
                  Company's or Affiliates' confidential information, including,
                  but not limited to, loan sources, mail lists, customer lists,
                  databases, loan underwriting criteria and procedures, loan
                  administration procedures, sources of finance, loan sales and
                  securitization procedures, confidential technical information,
                  confidential information concerning loan procurement or sales
                  activities or procedures, promotion or pricing techniques, or
                  credit or financial data, including confidential data
                  concerning customers or business relationships of Company or
                  Affiliates (collectively, "Confidential Information"), nor
                  under any circumstances will Executive use any of such
                  Confidential Information for her own purposes or for the
                  benefit of any firm, corporation or other person, except
                  Company or Affiliates. The foregoing restriction shall be
                  inapplicable to any Confidential Information which becomes
                  generally available to the public other than as a result of a
                  disclosure by Executive. Additionally, the foregoing
                  restriction shall not apply if the Executive is compelled to
                  disclose the Confidential Information by a regulatory body or
                  court order. Furthermore, the foregoing restriction shall be
                  inapplicable to any Confidential Information which becomes
                  generally available to the public other than as a result of a
                  disclosure by Executive, and to any information, knowledge,
                  expertise or experience Executive possessed before becoming
                  employed by the Company.


                                                                               4
<PAGE>

            (ii)  Attempt to divert, solicit, interfere with, or take away any
                  business of any person, firm, or corporation which has been an
                  employee, loan broker, loan representative, loan source, or
                  customer of Company or Affiliates prior to the date hereof or
                  at any time during Executive's employment.

            (iii) Interfere with the employment, contractual or business
                  relationships of Company or Affiliates which currently exist,
                  or which shall have been developed at any time during
                  Executive's employment, by and between Company or Affiliates
                  and any other person, firm or corporation, including, but not
                  limited to, loan brokers, loan representatives and other loan
                  sources.

            (iv)  In any city, village, town or the like in which the Company or
                  Affiliates conducts business on the date of termination
                  hereof, or at any time two years prior to such date, and
                  within a five-mile radius from the center thereof, act in any
                  manner or capacity, as principal, agent, partner, officer,
                  director, employee, member or any business entity, consultant,
                  adviser or investor in or for any business entity or
                  enterprise which, at the date hereof, is engaged in, becomes
                  engaged in during the term hereof, or which, during the
                  Non-Competition Term, commences to engage in, the making,
                  origination, underwriting and/or placement of commercial
                  loans, including, but not limited to, 7(a) loans and B & I
                  Loans. Notwithstanding anything to the contrary contained
                  herein, this subparagraph (4) shall apply during the term of
                  this Agreement and for eighteen months after termination of
                  this Agreement. This subparagraph shall not apply if
                  Executive's employment is terminated without Cause.

            (v)   Executive has carefully reviewed the above restrictions on her
                  future business activities and represents to Company that they
                  will not unreasonably interfere with her future ability to be
                  gainfully employed. However, if the scope of any restriction
                  contained herein is too broad to permit enforcement of such
                  restriction to its full extent, then such restriction shall be
                  enforced to the maximum extent permitted by law, and Executive
                  hereby consents and agrees that such scope may be judicially
                  modified accordingly in any proceedings brought to enforce
                  such restrictions.

      (e) Executive's Work Product.

            All of the results and proceeds of Executive's services under this
Agreement, including, without limitation, any and all programs, written
procedures, trade names, trademarks, service marks, inventions, improvements,
technical information, software, suggestions and the like, relating to Company's
and its affiliates' business, which Executive, during the term of this Agreement
creates, develops or acquires (whether or not during usual business hours and
whether alone or in collaboration with others), together with all patent
applications, letters patent, trademarks, copyrights, and reissues and renewals
thereof, that during the term are filed or granted for or upon


                                                                               5
<PAGE>

any such invention, improvement, trade name, trademark, service mark, materials
or technical information, shall at any time be and remain the sole and exclusive
property of Company. To the extent necessary to comply with the above, Executive
further agrees that she will promptly transfer, grant and assign to Company, or
to a corporation designated by Company, for its sole use and benefit, all
ownership rights with respect to the foregoing.

      (f) Termination of Employment.

            (i) Default. The Executive may be terminated for "Cause" by the
Company. "Cause" shall mean (a) the failure or refusal by the Executive
substantially to perform her duties hereunder (other than any such failure due
to physical or mental illness) after a demand for substantial performance is
delivered to the Executive by Financial's Board of Directors or the Company's
Board of Directors, which notice identifies the manner in which the Board
believes that the Executive has not substantially performed her duties, (b) the
Executive's conviction, or entering a plea of nolo contendere to, a crime that
constitutes a felony, (c) the Executive's intentional breach of her covenant not
to disclose Confidential Information, or (d) Executive commits an act of Fraud,
misrepresentation, dishonesty or misappropriation of Company assets or any act
that would jeopardize the Company's or Affiliates' ability to continue to
participate in the SBA 7a, B& I or other government sponsored lending programs.

            (ii) Disability. The Executive may be terminated for "disability" by
the Company. "Disability" shall mean a physical or mental disability that
prevents the substantial performance by the Executive of her duties hereunder
lasting for a continuous period of four (4) months or longer. The reasoned and
good faith judgment of the company's Board of Directors as to the Executive's
disability shall be final and shall be based upon such competent medical
evidence as shall be presented to the Company's Board of Directors by the
Executive or by any physician or group of physicians or other competent medical
experts on behalf of the executive and on behalf of the Company.

                  Prior to termination, Company shall be entitled to deduct from
all payments to be made to Executive during any disability period an amount
equal to all disability payments received by Executive (but only with respect to
that portion of the disability period occurring during the Term and then only to
the extent of the salary due to Executive during the period of her disability)
from Worker's Compensation, Social Security and disability insurance policies
maintained by Company by or on behalf of Executive.

            (iii) Death. In the event of Executive's death at any time during
the term hereof, this Agreement shall terminate, in which event Company shall
thereupon be released and discharged of and form all further obligations
hereunder.

            (iv) Executive's Right to Terminate. Executive may terminate this
Agreement in the event that Robert F. Tannenhauser is no longer affiliated with
the Company. Mr. Tannenhauser shall be deemed to be affiliated with the Company
as long as he serves as an Officer or Director of the Company or Financial. A
termination under this provision shall not be deemed a termination for Cause.


                                                                               6
<PAGE>

            (v) Notice of Termination. Any termination by the Company and/or
Financial pursuant to this paragraph or by the Executive pursuant to this
paragraph shall be communicated by a written "Notice of Termination" addressed
to the other parties to this Agreement. A "Notice of Termination" shall mean a
notice stating that the Executive's employment hereunder has been or will be
terminated, indicating the specific termination provisions in this Agreement
relied upon and setting forth in reasonable detail the facts and circumstances
claimed to provide a basis for such termination of employment. Subject to the
cure rights provided for herein, the termination of the Executive's employment
shall be effective as of the date specified in the Notice of Termination;
provided, however, no such termination shall be effective prior to the date the
Notice of Termination was received.

      (g) Consequences of Termination.

            In the event that the Executive's active employment with the Company
is terminated for any reason, other than Cause (i.e. disability), the Company
shall pay to the Executive as termination compensation an amount equal to six
months compensation determined as of the Termination Date. Such payment shall be
in addition to any compensation due and payable to the Executive as an active
employee of the Company pursuant to paragraph (b) of this Agreement, through and
including the Termination Date. The payment shall be made in cash in six (6)
monthly installments.

      (h) Injunctive Relief.

            It is mutually understood and agreed that Executive's services are
special, unique, unusual, extraordinary and of an intellectual character giving
them a peculiar value, the loss of which cannot be reasonably or adequately
compensated in damages in an action at law, and therefore in the event of any
breach by Executive, Company and/or Affiliates shall be entitled to equitable
relief by way of injunction or otherwise without the necessity of posting of a
bond or other security, or the necessity of proving actual damages. This
provision shall not, however, be construed as a waiver of any of the rights
which Company may have for damages under this Agreement or otherwise.

      (i) Life Insurance

            Executive will permit the Company to purchase "key man" or similar
insurance coverage on this life for the exclusive benefit of the Company, in
amounts that it determines, and Executive will cooperate with the Company and
the insurance carrier in obtaining such insurance.

      (j) Miscellaneous.

            (i) Assignment. This Agreement shall not be assignable by either
party, except Company shall be entitled to assign this Agreement to, and it
shall thereafter be binding upon any entity with which company may merge or
consolidate, or into which company may liquidate, or to which substantially all
of the assets of Company are transferred, provided that such successor assumes
all of the Company's obligations hereunder. The Company may also assign this
Agreement to any of its Affiliates.


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<PAGE>

            (ii) Entire Agreement. This Agreement sets forth the entire
agreement and understanding of the parties hereto, and supersedes all prior
agreements, arrangements and understandings.

            (iii) Partial Invalidity. Nothing herein contained shall be
construed to require the commission of any act contrary to law. Where there is a
conflict between a provision of this Agreement and any present or future
statute, law, ordinance or regulation, the latter shall prevail, but in such
event, the provision of this Agreement affected shall be curtailed and limited
only to the extent necessary to bring it within legal requirements.

            (iv) Representations. No representation, promise or inducement has
been made by either party that is not embodied in this Agreement, and neither
party shall be bound by or liable for any alleged representation, promise or
inducement not set forth herein. Executive warrants that she is free to enter
into this Agreement and to render her services pursuant hereto.

            (v) Benefit. The provisions of this Agreement shall inure to the
benefit of the parties hereto, their heirs, legal representatives, successors
and assigns.

            (vi) Governing Law. This Agreement shall be governed by and
construed and enforced in accordance with the laws of the State of New York
applicable to agreements made and to be performed wholly with New York.

            (vii) Modification. This Agreement may be amended, modified,
superseded, canceled, renewed or extended, and the terms or covenants hereof may
be waived, only by a written instrument executed by the parties hereto, or in
the case of a waiver, by the party waiving compliance. The failure of a party at
any time or times to require performance of any provision hereof shall not
affect the party's right at a later time to enforce the same. No waiver by
either party of the breach of any term or covenant contained in this Agreement,
whether by conduct or otherwise, in any one or more instances, shall be deemed
to be, or construed as, a further or continuing waiver of any such breach, or a
waiver of the breach of any other term or covenant contained in this Agreement.

            (viii) Section headings. The section headings contained herein are
for reference purposes only and shall not affect the meaning or interpretation
of the Agreement.

            (ix) Notices. All notices, requests, demands and other
communications required, or as may be given, under the Agreement shall be in
writing and shall be deemed to have been duly received three (3) days thereafter
if delivered, or mailed, certified mail, return receipt requested, first class,
postage prepaid, if to Executive to Jennifer Napier 50 West 72nd Street, New
York, N.Y.; and to Company BLC c/o Business Loan Center, Inc., 645 Madison
Avenue, New York, New York, Attention: Robert F. Tannenhauser; or to such other
address as Executive or Financial may designate in writing.

            IN WITNESS WHEREOF, the parties hereto have executed the Agreement
as of the 


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<PAGE>

date first herein above written.

                                      COMPANY                                  

                                      Business Loan Center, Inc.               
                                                                               
                                      By: /s/ Robert Tannenhauser              
                                         ------------------------------------- 
                                            Robert Tannenhauser, President     


                                      BLC Financial Services, Inc.             

                                      By: /s/ Robert Tannenhauser              
                                         ------------------------------------- 
                                            Robert Tannenhauser, President     


                                      EXECUTIVE:                               

                                      /s/ Jennifer Napier                      
                                      ---------------------------------------- 
                                      Jennifer Napier                          


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