Sec. 6. Subject to the restrictions under this chapter, the agency may use money in the fund to provide financial assistance under section 5(a)(1) of this chapter to an eligible entity that:
(1) has incurred a loss or response cost;
(2) is located in a jurisdiction that:
(A) has declared a local disaster emergency;
(B) requires state assistance to supplement local resources to effectively respond to the disaster; and
(C) contains territory for which a disaster emergency has been declared by the governor, if the eligible entity is not an individual;
(3) has applied to the agency for financial assistance in the form of a grant; and
(4) complies with all other requirements established by the agency.