They’ve probably decided it’s a security risk because it edits files. Either that or it’s cropped up on some vulnerability database that I don’t know about.
I do the best I can to ensure the plugin can’t be abused and doesn’t pose security risks to the server it runs on. Occasionally people report flaws and they get fixed. If StableHost would care to report a vulnerability then I’ll look at it. Until such time I can’t help with your problem as your hosting company has final say on what code you are permitted to run on their servers.
If they refuse to enable your use of a plugin you need or like, or even discuss their concerns with you, then I’d consider switching host. I’d dare say there are many more hosting companies than there are WordPress translation editors.
Finally, consider that Loco Translate is only a file editor and does not actually need to run on your live server. You can perform your edits on any server that can run Loco Translate and simply transfer the MO files to where you need them. This will of course mean uploading MO files to standard system locations where WordPress can find them, so you’ll need to protect your files from overwrites.