Calling a SQZ in the BB with KQs

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Calling a SQZ in the BB with KQs

Blinds: $0.05/$0.10 (6 Players)
BTN: $9,71 (Hero)
SB: $11,37
BB: $10,13
UTG: $11,22
MP: $10,13
CO: $5,22

Preflop
Hero is in the BB with KsQs.
UTG folds, MP folds, CO raises to 0,30$, BTN calls 0.30$, SB SQZ to 1,30, BB (hero) calls 1,20$, CO and BTN folds.

Flop (4,20$) 7h Qd 8c
SB snap bets 3.30$, BB (hero) folds.

My first question here is, do we call pre, if we are not closing the action and we have a shortstack CO behind, that might shove?
My information on CO is he was a fish that´s why I decided to call the SQZ hoping CO will call too.
We don´t have much info on the SB SQZer, haven´t seen him playing before. The only info was he snap bets the flop with 78,51% bet.
Do we call the flop once? I ended up folding the flop to not become commited on the turn, with the fact that we dont have a spade backdoor flush draw. Also I think in the best case scenario here our opponent has TT, JJ, AK or AJo. Is my thinking correct here? Whats your approach on this hand. Thank you.

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