I would really back up before these behaviors become set and stress related to being with people. You may seriously have to reevaluate if his temperament is suited for therapy work also.
Walk and play the heck out of him so he is tired for a few days. Then set up small group visits with people. Keep him leashed, have people utterly ignore him unless he is settled. They can toss him treats. Once he has learned to settle next to you (may take 4 or more visits), try without a leash. You need to build up a routine of calm and if it requires leashed for 4 visits or 10 visits til he gets it right, you do it.
For the grabbing clothes– a brisk NO, and put into a down with whoever he is grabbing totally ignoring him. Have them do the tree thing. Obviously safest to eliminate this behavior with home and family.
Once you have him settling around a small group, work to get a few more, more noise, more activity and build up so that he is adjusted and not stressed.
It sounds like simple overload/stress, but if you don't fix it with a lot of work, you can forget therapy work.
You might also write KDiamondD@aol.com. Copy your story to her, and ask her advice. She trains both therapy and service dogs and truly is amazing. (Kathy Diamond Davis also has books.) Tell her I referred you to her.