How would this be reported on tax forms in 2022?

One of Winnies co-workers at BOOM started a new business two years ago. Winnie had loaned her $20,000 in 2020. The loan was properly documented with interest at the market rate and a repayment schedule. Unfortunately, the business did not go well, and Winnies friend filed for bankruptcy this year. Consequently, Winnie will not be able to collect any of the $20,000.