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Hi LWJ,
Just my 2c, if you know what alloy it is made from( something that welds ok 316ss 304ss) you could probably weld it and then straighten it, if you are not sure of the material you are taking a chance. Being stainless it will bend when it is welded, that is probably why most boatyards won't bother, it will require straightening.
You can possibly find a shop that can spray arc some material on there, different process less heat.
$500 depending on the size is not too bad, BOAT stands for Bring Out Another Thousand.
Is there another size cutlass bearing that is slightly smaller id? turn the shaft to fit.
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87 930,
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