Speaking to the Morning Star, Mr Loach, who appeared alongside Mr Williamson at a Labour conference fringe event on Monday, said of the Derby North politician: “At the Durham Miners Gala he biggest cheer from the march past the County Hotel was for Chris.
“Everybody knows Chris is not an antisemite. If you pass on defending him for some tactical advantage, we are all losers. It’s a slippery slope.”
He accused Labour’s Lord Falconer of interfering in “due process’ by demanding Mr Williamson was suspended by the party on BBC Radio 4's Today programme.
Mr Loach attacked Jewish MP Dame Margaret Hodge, who he said was “allowed” to “indulge in revolting foul mouthed abuse of the leader.”
He was referring to an incident in which she confronted Mr Corbyn in the House of Commons chamber in July 2018 and allegedly swore as she called him a "antisemite and a racist".
Mr Loach added: "I don’t know any Labour member who was not disgusted by that yet she is allowed to continue to stand as a Labour MP.”