Basically, you took out a loan with an interest rate of about 25% to look for a job. 10% penalty + tax rate. The bank would have given you a better rate than that.
If you're age 55 there is no penalty for withdrawal if due to job loss. As for the 20% tax, much of it will be refunded based on your tax rate when filing at the end of the year.
What bank is going to approve a major loan to someone who is unemployed and how are you going to pay it back if you have no job? You already have major expenses to pay.......