TRENTON -- Just 3 percent of New Jersey businesses owed hundreds of millions in cash grants promised by the state have opted to convert those grants into tax credits, according to the Economic Development Authority.

But Melissa Orsen, chief operating officer of the EDA, told the Assembly Budget Committee this week that while just a "handful"of businesses had volunteered, more were likely to jump on as the July 11 deadline approaches.

New Jersey owes $627.8 million in Business Employment Incentive Program grants, a 20-year-old program that doled out money to companies that created new jobs in New Jersey.

According to the EDA, it awarded $1.6 billion in grants to 499 businesses before the state closed the program in 2013. Recipients include major corporations, like Bayer HealthCare, Coca-Cola Bottling Company, Goldman Sachs Execution and Clearing and the Colgate-Palmolive Company, but also small businesses.

But many of those businesses have been waiting for their check for years as the state underfunded the BEIP grants.

The Christie administration called those grants, which were subject to annual budget appropriations, "unreliable." On the other hand, it said tax credits would restore "credibility to the program ... allowing businesses to plan and grow accordingly."

Earlier this year, Gov. Chris Christie signed a law offering those businesses the chance to convert their outstanding grants into tax credits they can use to lower their state business corporation, gross income or insurance premium tax liabilities.

Backed by pro-business groups, that law would assure businesses get some relief, even if it wasn't what they were promised. Those that don't opt for the credit will continue to wait, perhaps in vain, for the state to eventually pay up.

"In a perfect world, would I have liked to see what was initially and originally a grant? Yes of course," said Michael Egenton, executive vice president of government relations for the state Chamber of Commerce. "But the reality check I provided to my members was because of the fiscal challenges that the state has, this was a good option for them."

In the budget for the fiscal year beginning July 1, the state is expecting businesses redeeming those tax credits will cancel out any expected growth in tax collections.

Two months before the deadline, only 10 of the 325 companies waiting for their grants have elected to make the change, EDA spokeswoman Virginia Pellerin told NJ Advance Media.

Egenton said he expects participation to climb.

"Everybody procrastinates," Egenton said. "I'm optimistic that they will (opt in). The state is now going forward in making sure that the commitment is there and there is ... conversion. Hopefully businesses will go back to whoever makes that decision and say 'ok, we'll do it.'"

Samantha Marcus may be reached at smarcus@njadvancemedia.com. Follow her on Twitter @samanthamarcus. Find NJ.com Politics on Facebook.