Small Block Pulley Clearance

I have a clearence problem. I put a rebuild 1972 350 into a 38 Chev Coupe. I had already put a mustand II manual stering unit in. The dampner pulley only has about 1/32 clearance. The pulley is 6 3/4. What are my options. Can I find a smaller pulley to gain space? How $$$

It is under. I tried to use a spacer on the mount, then the moter would not fit.

Thanks for your help. Someone before me put the motor mounts in. It is a tight fit. I wasn't sure what the minimum clearence should be.