You can, but should you is the question.
If you treated or can treat the loan as personal funds and tge work as personal work then go ahead and delete.
If the work was for your business and was intended to be payback for the loan possiblybthis must be handled as barter OR an advance of funds to a subcontractor and for which the end result will be writing down the loan against casual labor and tge issuance of a 1099 to your relative, which constitutes taxable income to them.
For continued good family relations it might be far better to treat tge loan as your own equity draw from your business and call it a day.
