It sounds like a reverser module may not work with your Select - according to the previous post only the Elite has been upgraded to resolve the problem with reversers. Best to check this out before you spend £25 or so on a reverser.
If you go for a reverser, then you just need to insulate both rails at both ends of the reversing section and wire the two rails to the two reverser output terminals. The reverser input terminals go to the track outputs of your command station (doesn't matter which way round in either case).
If the loop is connected to a point which needs to be changed before the train comes out of the loop, then you can use contacts on the point switch to reverse the polarity of the track in the loop, again with all four rails insulated.
If this isn't the case and a reverser won't work with the Select then you are back to wiring your loop through a DPDT switch and manually reversing polarity. This has to happen while the train is fully within the reversing section, so as your reversing section is short you will need to stop the train. You will also need to remember to put the switch back to its original setting after the train has left the reversing section, ready for the next train.
If you go for a reverser, then you just need to insulate both rails at both ends of the reversing section and wire the two rails to the two reverser output terminals. The reverser input terminals go to the track outputs of your command station (doesn't matter which way round in either case).
If the loop is connected to a point which needs to be changed before the train comes out of the loop, then you can use contacts on the point switch to reverse the polarity of the track in the loop, again with all four rails insulated.
If this isn't the case and a reverser won't work with the Select then you are back to wiring your loop through a DPDT switch and manually reversing polarity. This has to happen while the train is fully within the reversing section, so as your reversing section is short you will need to stop the train. You will also need to remember to put the switch back to its original setting after the train has left the reversing section, ready for the next train.