He said he expects the Tea Party won't agree to a resolution "without some significant alteration to Obamacare." He says an "obvious compromise in this standoff" is a one-year delay of the individual mandate, which he calls the "least popular aspect of the healthcare law," to go along with a delay in the employer mandate.
"That would give both sides an honorable outcome and resolve the problem," he said.
When asked if most Tea Party members are concerned about the economic effects of the government shutdown, Clancy said the Tea Party is concerned just as much about the healthcare law's negative impact on small businesses as others care about the shutdown's impact on large businesses.
"We are fighting for economic reasons as well as ideological reasons. Obamacare hurts businesses," he said.
Some businesses disagree with the health care law, but haven't backed a horse in the current showdown. On Wednesday, Philip Ellender, president of Koch Companies Public Sector, said Koch Industries wants nothing to do with the shutdown.
"Koch believes that Obamacare will increase deficits, lead to an overall lowering of the standard of health care in America, and raise taxes," Ellender wrote in a letter to Congress. "However, Koch has not taken a position on the legislative tactic of tying the continuing resolution to defunding Obamacare nor have we lobbied on legislative provisions defunding Obamacare."
Neil Trautwein, vice president with National Retail Federation, a group that has long been vocal against the health care law as it concerns businesses, points out that businesses with more than 50 employees are considered big businesses according to the mandate.
The National Retail Federation is not involved in the debate on the individual mandate and doesn't support the current effort to defund the law, Trautwein said.
"We supported several but not all of the numerous efforts to repeal the law, mostly in the House but some in the Senate," he said. "We have not supported the current effort to defund the law and to hold up funding for the government and potentially threaten the debt limit increase."
The National Retail Federation represents retailers who operate more than 3.6 million U.S. establishments, the trade group says.
In a letter to Senate Majority Leader Harry Reid released on Wednesday, NRF President and CEO Matthew Shay said the federation "strongly" supports the passage of both a continuing resolution to provide for funding of the federal government into the next fiscal year and a measure to raise the nation's debt ceiling.
"There are warning signs that an extended shutdown will have serious repercussions for the U.S. economy," he said. "Gallup's Economic Confidence Index fell 12 points last week, making it the second largest weekly drop ever. Only the collapse of Lehman Brothers in September 2008 has done more damage to consumer confidence in such a short period of time. For retailers – who represent the sector of the American economy most closely tied to consumer attitudes – these numbers are deeply disturbing."