S.C. likely to complete repayment this summer of $1 billion federal loan to cover unemployment claims

South Carolina’s unemployment agency is on track to finish repaying this summer a $977 million, five-year loan from the federal government to cover jobless claims because of a deficit the state ran up during the Great Recession.

The Department of Employment and Workforce made a $75 million early payment in March, which leaves a balance of $120 million on the nearly $1 billion federal loan, the state agency said in a news release Monday.

Since borrowing the money in 2010, the state has made nine payments – seven of which were either early or extra payments, said Adrienne Fairwell, agency spokeswoman. The two extra, or voluntary payments, were made in October 2013 and December 2014, she said.

The history of early payments has saved the state between $10 million and $12 million in interest, Fairwell said.

The Legislature set a November 2015 deadline for repaying the loan, which means it will be paid off five to three months early depending on when the final payment is submitted, she said.

Jobless claims tripled in 2009, Fairwell said, as the sharpest economic collapse since the Great Depression gripped the state.

Growth in employment, particularly last year when 2 million people were working in South Carolina, led to more tax collections from employers who pay into the jobless fund. The federal government had projected 1.9 million people working when it set the 2014 unemployment tax rate, the agency said in its statement.

“South Carolina experienced record high employment throughout 2014 as benefit payouts continue to decline monthly,” agency Director Cheryl M. Stanton said in the news release. That allowed the state to make the $75 million early payment, she said.

The agency said the state paid $80.7 million less in unemployment benefits during calendar 2014 compared with 2013.

“Today’s early payment, made possible by 63 consecutive months of employment growth in our state, is another reason to celebrate,” Gov. Nikki Haley said in the news release.

This story was originally published March 30, 2015 at 11:25 PM.