By: Nicholas Sohr

The state Senate has given preliminary approval to Gov. Martin O’Malley’s much-amended plan to expand unemployment benefits. (Here’s our most recent story on the compromise bill.)

The legislation will likely be up for a final vote in the chamber this week.

But, one lawmaker said, there is at least one part of the plan that must still be worked out.

As part of the compromise with business groups on the bill, a cut of $83 million to the record-high unemployment taxes in 2010 was removed. The groups argued the cut would hurt the Unemployment Insurance Trust Fund in the long run, and keep businesses paying higher taxes in the years to come.

Sen. Thomas M. “Mac” Middleton, the Charles County Democrat who led the negotiations on bill, said he is working with the governor’s office to create a program that would give businesses loan guarantees to help them pay their unemployment insurance taxes.

One option would be to rededicate part of a small-business loan guarantee program, which is already part of O’Malley’s business agenda this year. Middleton said he is looking for $3 million to $5 million.

“We’re hoping we can take part of that money for a loan guarantee program, a no-interest or low-interest loan program,” he said.

The move could help some small-business owners. The National Federation of Independent Business, which does not support the compromise legislation, had supported the original tax cut provision.

Unemployment insurance taxes shot up for businesses in 2010 as the high jobless rate weighed on the trust fund. The minimum rate in 2010 is $187 per employee, compared with $51 last year. The 2010 rates top at out $1,147.50 per employee.