Yes, you're fine for shooting jacketed. And 35 yards is more distance than you need.
Look at the minimums for shooting at steel for IPSC and IDPA. I don't have my IPSC rule book handy but IDPA is a minimum of 10 yards. Shooters at these events typically shoot jacketed rounds without issue when the targets are in good condition. And with using AR500 in your case "good condition" will not be an issue. You'll get many, many years of handgun caliber use from that target other than when you take out the chain and bolt heads used for holding the target up.
Watch for straight on hits on the bolt heads that produce a "crater". Change such bolts right away. It's the rounded craters that have the potential for "U" turning the rounds back and potentially causing some lead or jacket to "spray" the firing line.
This issue with the bolt heads is why my local club that shoots monthly Speed Steel events does not use bolts and chains. Instead the armor plate targets are drilled and the targets simply hang on re-bar hooks bent into the top of the stands. Spatter from the rounds hitting the target therefore doesn't hit any angled "divots" in any bolt heads and end up reflecting back. It just hits the re-bar and deflects in the same plane as the rest of the spatter.
When watching folks shooting these targets often the jackets can be seen arcing up and away from the targets. But the direction is always more or less in the plane of the target face. So there's no safety concern AS LONG AS THE FACE IS CLEAN AND CRATER FREE and there's nothing on the face of the target or sticking out of the target that is angled such as to reflect back any of the spatter.
So all in all I'd suggest that you modify the target stand to just "hook" the plate onto re-bar hooks that stick out and that the hooks have shallow bends in them. That'll likely end up being less trouble and more reflection free by avoiding any issues of damaged bolt heads.
Be aware that there is some east European ammo out there that has steel cores and steel jackets. I doubt that the steel jackets are an issue but steel core ammo is something to be avoided. Not only will it run the risk of cratering even the AR500 but steel against steel has a far, far greater risk of reflecting back to the shooting line. It almost certainly won't be an issue with .357 and .44Mag but if you have anyone visiting and shooting at your target with 9mm then it's something to watch for. We've run into some of this ammo locally and it's very dangerous to use with steel backstops or steel targets. The same warning would apply to any steel shot shells. Lead target loads used on a steel plate at around 10 yards makes for a really nice ringing sound when hit and is just fine from a safety aspect. Any pellets that do come back are greatly reduced in power. But shooting any steel shot at a steel target is a gauanteed way of finding out what a duck feels like when being shot at.
