The fund enables SME housebuilders to access affordable finance to allow them to build new homes.
Mr Sargeant said that innovation and an increased role for SME housebuilders would help identify alternatives to the existing model for housebuilding.
"SME housebuilders were hit particularly hard by the global economic crisis and continue to be affected.
“I hope the expansion of the Property Development Fund will have a significant impact in helping SMEs who are building homes, and encouraging more local companies to become developers.
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"We have a challenging target of delivering 20,000 affordable homes over this term of government.
“In working to meet our target, I want as many homes as possible to be delivered by SMEs, creating new capacity in this sector.”
The loan fund is run by Finance Wales and helps SME housebuilders who are unable to access affordable finance from traditional sources.
"The additional £30m is a real boost to the fund and with an expanded team in place we’re excited to support even more small- to medium-sized developers,” said Cenydd Rowlands, property fund manager at Finance Wales.
“The mixed-use and residential projects we can fund have direct impact on their local communities through direct and indirect employment opportunities, as well as providing much-needed quality housing."