Yes it will but if you can do an immediate backup then you should be able to have information from which to restore.
I stopped setting up backups to the tape drive when I started setting up backups to various PCs on the network.
I don't have the system up and running in front of me so explaining this out of memory will likely be a little off but if you do have a system to look at you will see what I mean.
Here is a simple explanation. Assume you have a PC running OTM (it can be whatever) and you name it OTM. You can then add a folder on the C drive named whatever you like (I use backup) and make it a shared folder with read/write permissions. Note, it's easiest to have this the only shared folder but it will work if you have others.
You can then build a new backup job that points to this folder. I believe you can browse and select the folder or you can type in \\OTM\backup (I may have the syntax wrong but you'll get the idea).
Then schedule the backup job. You may find that this doesn't work either because of whatever your problem is, in which case you should probably follow the advice above and reload everything.