If your business operates at a loss, your business losses are netted against all other types of income. Losses from a business would be considered ordinary losses, not capital losses. Therefore, they are not specifically offset against your capital gains. So you would still have the capital gains income but would have ordinary losses that reduce your total income.
In general, since long-term capital gains are taxed at a lower rate than ordinary income, an ordinary loss (such as a loss from business) is more tax beneficial than a capital loss.
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