Prolonged Federal Funding Lapse — severe-but-plausible scenario — ITOL

Vector: Third-Party & Concentration · Severity: moderate

Appropriations lapse and stay lapsed. SBA (Small Business Administration) loan approvals stop. FHA (Federal Housing Administration) and USDA mortgage processing slows or pauses. IRS income verification degrades. A lapse in the NFIP (National Flood Insurance Program) stalls flood-zone closings. Federal workers miss paychecks and call for help. The bank's regulators stay open; they are not appropriated.