First of all, folding is not an option.

He could have :

1- 2 Pairs
2- Set
3- Str8 Draw
4 - Air

If he has you beat (1 or 2), let's say you call and SB folds. The pot will be 390 + 120*2 = 630. He will have 710 left, if he wants to play his stack he only have to bet 300 on the turn and 410 on the river, so you will play for his stack. Option 1, you have 3 or 5 outs. Option 2 you need runner-runner, but would he play 99 or 10-10 like this, I don't think so.

If you have him beat and he has KQ, you have to charge him to draw so you have to raise.

If he has air, you shouldn't have anything more from him.

So I would raise to 400-450 or so...

I would not worry about the SB, he checked and he will face a raise/re-raise.