He doesn't have to pay Google wage rates. He also doesn't have to wait it out for a bigger candidate pool so he can 'negotiate' lower baselines.
Business owner is using a turtle strategy. Opportunistic yes but also seeing people as numbers on a spreadsheet.
OP stated that he feels fear. Fear is a reasonable reaction when a Business Owner closes doors for conversation to wait out catching google 'talent' at a bargain.
Some people are in a situation where they need work now or very soon.