ROCKFORD (WIFR) -- The clock is ticking to raise the national debt limit. Lawmakers have just two days left to come to an agreement before the government defaults on its loans. But one local business owner says it might not matter either way.

"We're basically damned if we do and damned if we don't," says Daniel Nelson.

Daniel Nelson, owner of small business Chocolat by Daniel in Rockford says, even if lawmakers raise the debt limit before Tuesday's deadline, our nation won't necessarily be in a better state.

"If we do (raise the debt limit), we continue down the path we're currently on; spending, spending, spending, getting deeper in the hole," says Nelson.

But if we default on our bills small businesses like Nelson's could be stuck paying higher interest rates.

Nelson explains, "There are a lot of fees and taxes and things hitting us that people don't realize."

Even worse than higher interest rates, the government may have to choose who to pay.

"You want to pay social security, interest on the debt, how about our combat soldiers, did you mention the CIA watching the threat of terrorism against America," says U.S. Senator Dick Durbin, a democrat from Illinois.

Cutting salaries could mean less spending, less business and even unemployment.

"There are a lot of hurting people out there so that affects us; the rate I pay as an employer for unemployment insurance had gone up 1,000 percent," says Nelson.

Lawmakers are considering all of these things as they struggle to reach a bi-partisan plan.

"Serious cuts have to be made because this current track is unsustainable either way," says Nelson.

If the nation defaults on its debt next month, the U.S. will have $172 billion to pay $306 billion worth of bills.