A 42-year-old Modesto man on Monday was sentenced to three months in federal prison for lying in a small-business loan application, the U.S. Attorneys Office in Sacramento reported. Defendant Anthony J. Vargas also was sentenced to three months of home confinement once he is released from prison, along with two years of supervised release. Vargas will be monitored while in home confinement, and will be allowed to leave home only for work. Vargas pleaded guilty to a charge of knowingly falsifying material facts in a loan application with the U.S. Small Business Administration. The federal court ordered Vargas to pay $47,747 in restitution to the SBA and the bank that funded his loan. In March 2009, Vargas applied for a $50,000 small-business loan under the American Recovery and Reinvestment Act of 2009 for his business Bootstrap Cabinets. Vargas signed the SBA forms, certifying that the information in his application was true and complete. Federal prosecutors said Vargas knowingly misrepresented his criminal history. The prosecutors also said Vargas indicated in the application that he had never been involved in bankruptcy proceedings, but he had already filed for bankruptcy. About three months after the loan was approved, Vargas defaulted and filed for bankruptcy.