"This puts the balance sheet all out of whack. Assets $15k; SBA Loan $150k and Retained Earnings -135k"

What is out of whack there?

It was:

Assets $15k (tangible) + $135k (owed from sh) = $150k

Liability $150k (SBA)

Equity = 0

Obviously, he took home most of the SBA loan...

And changed after forgiving the SH loan:

Assets $15k

Liability $150k

Equity -$135k

Because the corporation has a big hole to dig out of. Isn't this what you show?