The State recently approved a $ 590 million loan to Bay Area transit agencies to tide them over until the expected passage of the regional sales tax measure in November. Of that amount, Muni is expected to receive about $ 200 million. The state loan will allow Muni and other transit agencies to maintain service levels until June 2027 when funds from the sales tax will become available.
The loan will have to be repaid over a 12 year period at a rate linked to the state’s Surplus Money Investment Fund., However according to the terms, the first two years will require only payment of interest. After that payment will apparently come from Muni’s operating budget.