As the economy still stumbles, a new South Carolina fee may keep some local businesses from getting back on their feet.

South Carolina is paying back a $1 billion loan to the federal government. To do that, the state increased the jobless insurance fee. In 2008, the state borrowed the money after the funds were drained by increased unemployment. The Federal Unemployment Account (FUA) provided a loan for states unemployment programs to help during the recession. South Carolina is one of thirty states and the U.S. Virgin Islands to collect loans to pay for unemployment.

The 20 rate tier program makes businesses that laid off more people pay more for jobless insurance. The rate could decrease for some businesses. But others could pay as much as $1,100 for each employee per year, compared to the $457 last year.

Legislators created the law to punish businesses taking advantage of the jobless system. The businesses would issue layoffs, saving money during normal slower times, to save them from paying employees regular wages.

But with the recession, many businesses had to legitimately make cuts to stay open. Now many believe increasing jobless insurance will force businesses to layoff more to pay the fee.

Stephen Greene with the Myrtle Beach Hospitality Association says it's difficult even for him to say which tier any one business falls. "At a meeting we had recently with business owners, maybe a couple knew what tier they would be in." says Greene. "I've looked over the new rule several times and haven't figured it out completely."

He says, right now, businesses along the Grand Strand are at a disadvantage. "The seasonal jobs we have force a lot of people to not work during the months between November and February. But they know they will have a job in February. The South Carolina government still recognizes that as laying off someone for the entire year."

This loan from the federal government, Greene says, wasn't meant to be paid back like this. "South Carolina legislators expected the recession to be over with when they took the loan and it would be easy to repay. But we see where that thinking got us."

However, he doesn't believe all businesses will see a hike in their unemployment insurance. "For some who didn't have a lot of layoffs, their fee may go down and they'll be happy with that and you won't hear a thing from them. For others who do see a boost in their fee, it'll be easy to find them because they'll be screaming foul the loudest."

Companies will receive notice of which tier they'll be placed in less than a week.