S corp loan or capital contribution?

New business (s corp) was started in 2021. For a almost the entire year , there was no income and only expenses. These were paid out of the sole shareholder’s personal bank account and totaled to a significant amount. He wants the money he contributed back. Is this a shareholder loan and we structure it with interest or is this a capital contribution? Can a capital contribution be repaid to the shareholder ? Are there tax consequences to either choice?