NEW YORK, NY August 31, 2009 —Small business owners are grappling to understand the real-life impact of any healthcare overhaul. Some of the pending legislation would require businesses to offer coverage to their employees, or pay a penalty.

SPARANO: You mandate that and I'm telling you right now, businesses are closing down. they're letting go of employees, they will not keep the numbers they have.

REPORTER: Sher Sparano who runs her own consulting business in Queens opposes the so-called "public option" a government insurance program akin to Medicare.

Jacques Gauthier owns a restaurant in Park Slope. He supports the public option, but agrees that requiring businesses to provide health insurance to their employees would be burdensome.

GAUTHIER: I'm a survivor. I'll find a way to make things work. maybe I would have to reduce wages a little bit, maybe I would have to cut somewhere else, sure, I would cut expenses somewhere.

REPORTER: The fate of any healthcare overhaul bill is expected to be settled once Congress returns from its summer recess after Labor Day.