I'd pick up a pair of Tektro 559 brakes for 40 bucks and ride it around for a while and see how this frame* works for you and your riding. (assuming you have a wheelset, which you will need at some point regardless. Plenty of stuff in the archives here on where to get a cheap set of 650B wheels for this kind of experiment). If you love the ride, go ahead and go all fancy on it.
Otherwise, you have options in that price range. You can get a Black Mountain Road Plus for $170 more, if you don't mind discs (I do.) And I've seen some nice deals for complete 650B bicycles on this list that, once you account for the rest of the parts, are definitely in the $530 frame and fork price range.
* I had a lovely pink Schwinn Super Sport (later model from the 80s) with Tenax that, like others have said, rode nicely, if a bit staid. The rumors I've heard on the internet is that Schwinn bought a bunch of Columbus SP tubing that was not quite in spec, something like that.