I'm sure everybody has or had this situation before. Basically, all my income (which is around $7K / month) is being washed off somewhere: rent payment + car payments + different insurances and so on. Unable to defer some money even for buying own house or apartment (which required 25% of down payment) with normal housing prices in my area between $200K - $400K. Recently decided to launch a small business: purchasing tiny corner grocery store near me and putting my friend as manager. The owner is asking for $90K for the whole business, plus additional $15K for reissuance of paperwork. Going to the bank and negotiating with them on a loan with the amount of $105K with a low interest rate seems like meaningless for me, as I doubt I can get a good deal. What will be the most appropriate way to get this started? Is there any non profit communities/groups that support small business launchers? Or there may be some government programs that do the same? Would like to get an advise from the experienced person, who went through this in the past.
I am going to assume your location is the US.
From what I am seeing it is unlikely you will get a loan other than some government backed thing. You are a poor risk.
At 7k/month, you have above average household income. The fact that all of your income "is being washed off somewhere" is a behavior problem, not a mathematical one. For example, why do you have a car payment? You should purchase a car for cash.
Failing that, given reasonable rent (1100), reasonable car payment (400), insurances (300), other expenses (1000), you should clear at least 4000 per month in cash flow. Where is that money going? Here tracking spending and budgeting is your friend. Figure out the leaks in your budget and fix them.
By cutting back, and perhaps working a second job or somehow earning more you could have a down payment for a home in as little as 10 months. That is not a very long time.
Similarly we can discuss the grocery store. Had you prepared for this moment three years ago you could have bought the store for cash. This would have eliminated a bunch of risk and increase the likelihood of this venture's success. If you had started this one year ago, you could have gone in with a significant down payment. The bank would see this as a good risk if you wanted to borrow the remainder.
Instead the bank sees you as a person as a poor risk. You spend every dime you make without much concern for the future or possible negative events (by implication of your question). If you cannot handle the cash flows of regular employment well, how can you handle the cash flows of a grocery business? It is far more complex, and there is far less room for error.
So how do you get a loan? I would start with learning on how to manage your personal finance well prior to delving into the world of business.