There have been more than 1,000 applications in a day for Phase 2 of the government's co-funding payroll scheme.

That's more than all applications made in phase 1 of the scheme. 780 businesses covering 5,900 employees claimed funding under Phase 1, paying out more than £1.7million.

Successful applicants for Phase 2 can have 80% of their workers wages paid every month up to a value of £1600.

Businesses struggling the most who can prove that they can't pay the other 20% won't have to.

The applications made so far will help more than 5,000 employees and more than 400 sole traders.

They will be processed this weekend so payments can be issued from Tuesday. The money is due to reach bank accounts from Thursday.

"The high level of interest demonstrates the need our businesses have for financial support at this difficult time. I am pleased that we have refined the applications system to make it easy for struggling firms to seek the help they need.

"We have put in place a system that can deal efficiently with a high number of applications and we are ready to help islanders keep their jobs and help businesses pull through this crisis." - Senator Ian Gorst, Assistant Treasury Minister.

The scheme is open for the months of April, May and June (businesses have to apply each month) at a cost of around £138m. Senator Gorst says the Treasury Department has budgeted for a further two months as well.