It had been reported that Sociedad's failure to qualify for the group stages of the Europa League had left Arrasate's position as uncertain.
However, Loren has given the coach a vote of confidence.
"When this team is excited, focused, motivated and at full strength, the performance is very good," Loren told Marca.
"The club didn't question Arrasate. Our confidence in him is the same now as at the end of last season.
"If we are able to do what we did against Real Madrid we must be able to be at more or less that level in every game. Results have little influence on the project."
Sociedad came from two goals behind to beat Real Madrid 4-2 in La Liga last weekend.