A father and daughter who fraudulently claimed £65,000 in Covid loans have been given suspended prison sentences.

Catherine Deegan, 43, used some of the money to rent a trailer, bankruptcy officials said.

She was given a 10-month prison sentence, 18 months of which was suspended, while her father Gerard Deegan, 65, was given a 16-month prison sentence, also 18 months of which was suspended.

Claire Entwistle, assistant director of operations at the Insolvency Service, said the pair “deliberately abused a scheme set up to support small and medium-sized businesses during the pandemic”.

“Both defendants have completely ignored the settlement and this behaviour will not be tolerated by the Insolvency Service,” said Ms Entwistle.

The Bounce Back Loan Scheme helped smaller businesses during the coronavirus pandemic to borrow between £2,000 and £50,000 at a low interest rate, guaranteed by the government, provided the payments were not used for personal purposes.

Catherine Deegan received legitimate loans worth £25,000 and £50,000 for Bootle Cars & Commercials Limited and the eponymous Bootle Car and Commercial Limited in May 2020.

Bootle Car and Commercial was a long-established family business established in 1984. Bootle Cars & Commercials was incorporated in February 2020. The defendants indicated that they wanted to expand Bootle Cars & Commercials into the Isle of Man.

Within two weeks of legitimately receiving a £25,000 loan for Bootle Cars & Commercials, Catherine Deegan applied for a further £15,000 from another bank. Her application for a top-up from the original lender was rejected on the grounds that the company was not entitled to it.

She subsequently paid herself £3,000 from this loan, including the rent of a caravan.

In May 2020, Ms Deegan then legitimately obtained a £50,000 Bounce Back Loan for another company Bootle Car and Commercial.

Her father Gerard, who was aware of the loan, applied for another Bounce Back Loan of £50,000 from the same company a month later.

In December 2021, liquidators were appointed for the company.

The pair were convicted at Liverpool Crown Court of fraud by making false statements.

Mrs Deegan, of Ferndale Road, Bootle, was also convicted of acquiring criminal property and given a 150-hour community service order.

Her father, who lived in Moss Lane, Lydiate, was disqualified as a director of the company for ten years and given an electronically controlled curfew between 6pm and 6am for eight months.