This is a notorious problem if you're under 5'. Options are thin on the ground.
My wife is 4'11" with a 23" cycling inseam (!). We were able to find a size 43 Cannondale Synapse. Even though it came with the smallest drop and reach bars I've ever seen, I had to swap the stem for a 60mm MTB stem to get the reach correct. The rest of the bike fits her well, albeit with only a few inches of visible seatpost. It has normal 700c wheels as well. Admittedly, this bike is perhaps overkill for your friend...
It might be humiliating to resort to a kid's bike, but it might work. Performance sells a 24" version of the Diamondback Hannjo with Claris for about $500. Not a bad option, maybe even a bit too small.