I wanna know how she got approved for the business loan
Y'all forget that you don't need a loan to start a business...
So the scenario is probably worse, as someone who has opened a business or two
If you have the cash you can open a business. All you have to do is sign the lease on a building or studio, and have an LLC and boom you have a business. So, she probably used her own personal money, or borrowed/got investment from a BF or family members....which means that money is gone and aint coming back.
At least with a loan you are making payments, or can just default on it or something...she lost cold, hard-earned worked for cash (or someones drug/scammer money)