Is it standard to raise that flop given villains small donkbet? And when we hit our straight on the turn, is betting good or should we check, representing a failed c-bet, hoping that villain would donk the river or we can bet the river for some small value?

Villain 16/5 over 88 hands:

Full Tilt No-Limit Hold'em, $0.25 BB (7 handed) - Full-Tilt Converter Tool from FlopTurnRiver.com

MP2 ($40.86)
CO ($12.89)
Hero (Button) ($29.59)
SB ($14.75)
BB ($44.03)
UTG ($4.27)
MP1 ($14.98)

Preflop: Hero is Button with 9, 8
4 folds, Hero bets $0.85, SB calls $0.75, 1 fold

Flop: ($1.95) K, 10, 7 (2 players)
SB bets $0.25, Hero raises to $1.25, SB calls $1

Turn: ($4.45) 6 (2 players)
SB checks, Hero bets $3, 1 fold

Total pot: $4.45 | Rake: $0.22