Personalized service made all the difference when obtaining PPP loans

Teamwork Makes the Dream Work

Gathering the right info was vital. Photo by Krisanapong Detraphiphat/Getty

It's there in their name, but how often does a human resources company actually put emphasis on the "human" part? If it's HR&P, the answer is "especially when it matters most."

Following the COVID-19 pandemic announcement, small businesses scrambled to get their Paycheck Protection Program applications and documents in order. Up for grabs was a government-funded $349 billion in forgivable loans to help pay salaries, utilities, and other necessary expenses while businesses weathered the medical and economic storm. And if a business didn't have a company like HR&P on its side, its chances at obtaining a PPP loan weren't nearly as high.

"The PPP loan process required a great deal of HR information, and the requirements seemed to keep changing," says David Gow, CEO of Gow Media (the parent company of InnovationMap). "So we reached out to HR&P a number of times with requests, questions, etc. And each time HR&P assembled a full team to help us. I eventually started calling them 'the dream team,' because the team at HR&P had all the answers."

"As soon as the banks got set up to process these loans, the funds were gone. Every second mattered," says Kris Osterman, HR&P's CFO. "The CARES act is over 800 pages long — our team divided it in sections, and quickly went through it to find the parts that mattered to our clients. We had to make sure we had what we thought the banks needed — the information coming from the treasury was vague at the start — we had to make interpretations and apply our technical knowledge to gather what was ultimately needed for each client. A rapid response was critical."

Working (often remotely) around the clock, through that first weekend, and then several others, HR&P's team was in constant communication with its clients and their SBA lenders. At the end of the day, it was the community-based companies like HR&P that shined over their larger, more bureaucratic counterparts. The blitz of ambiguous COVID-19 relief legislation was an incubator for chaos in the financial and human resource communities. Most payroll companies simply could not respond with a level of intimacy required to support a company's specific needs. HR&P had the agility to navigate these moving targets and swiftly personalize service for their clients.

"Everyone had a different interpretation of the legislation, and there were inconsistencies in what was being requested from each financial institution. Corroborating the requests and staying in constant communication with the client was imperative," says HR&P's VP of client relations, Kevin Roblyer. "They could literally get ahold of us on a Sunday, where other providers were not available or couldn't provide that localized presence."

"All the lenders and financial institutions were asking for different information," says John McKay, HR&P VP of operations. "HR&P is entirely customizable. Our development team can quickly create functionality and generate reporting capabilities for each individual client and their bank's needs."

More importantly, "being able to speak to a designated HR&P representative was very important to limit client anxiety," says Chris Fisher, HR&P's VP of sales.

Thanks to years of expertise and a deep knowledge of its clients, HR&P played a critical role in securing vital PPP funds for many small and mid-sized businesses.

"It took a lot of creativity," says Fisher. "And everything changed with the second round of funding in April. Because of our high touch service model, our clients were prepared and more equipped to succeed."

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New UH survey reveals concerns over AI data center growth in Houston

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A new report out of the University of Houston shows that area residents remain wary of the long-term effects of operating data centers.

The recent survey from the University of Houston’s latest SPACE City Panel, conducted by the Center for Public Policy at the Hobby School of Public Affairs, shows that while 85 percent of Houston-area residents use AI, nearly 63 percent oppose the construction of AI data centers within 1 mile of their homes.

Respondents’ concerns centered around data centers’ high energy demand and the area’s power grid reliability. According to the survey, 32 percent of residents who oppose local data center projects would be more likely to support the centers if they relied on renewable energy over fossil fuels.

“Respondents understand that AI can bring economic and educational benefits, but they are also concerned about the physical infrastructure needed to fuel AI, especially data centers,” Soran Mohtadi, post-doctoral fellow at the Hobby School and a researcher on the report, said in a news release. “This physical infrastructure demands more electricity and water, leading to environmental impacts.”

Experts estimate that 6.5 gigawatts of data center capacity will be added to the Texas grid by 2030. And Houston’s data center capacity is predicted to more than double by 2028.

The Electric Reliability Council of Texas also projects electricity demand could reach 218 gigawatts by 2031, which would be more than double the record peak set in August 2023. Data centers are expected to account for 86 gigawatts of that new demand.

Survey respondents also said they are concerned about the state's future water supply, given the large amounts of water that data centers need to stay cool.

In terms of who’s responsible for that issue, 57.6 percent of respondents said they put the onus on Texas lawmakers, while 31.5 percent say tech companies should be responsible.

Additionally, more than 75 percent of respondents believed that data center developers and technology companies—not residents—should bear the cost of infrastructure upgrades to support data centers.

“Every decision legislators make has implications on residents’ everyday lives and local infrastructure now and in the future,” Maria P. Perez Arguelles, lead researcher on the report and research assistant professor at the Hobby School, added in the news release. “This issue is going to become more important in years to come, so this is just the beginning.”

Read the full report here.

Houston-born Cemvita makes breakthrough in sustainable fuel production

clean fuels

Houston-based biotech company Cemvita announced that it recently reached a critical milestone in the development of its FermOil product, which can be used to create Sustainable Aviation Fuel (SAF) and other renewable fuels at industrial scale.

The company shared in a news release that it completed a 75,000-liter industrial fermentation run at Belgium's Bio Base Europe Pilot Plant.

The campaign achieved target technical metrics for the production of FermOil, Cemvita’s renewable natural oil (RNO). FermOil is produced from industrial crude glycerin, an industrial byproduct, as opposed to traditional sugar-based feedstocks used in many bio-oil fermentation processes. It's designed to be a drop-in feedstock for creating SAFs.

Cemvita had previously advanced its FermOil production process through multiple scale-up stages before successfully reaching the 75,000-liter demonstration campaign, according to the company.

“This is not just a fermentation milestone,” Moji Karimi, CEO at Cemvita, said in the release. “It is a blueprint for how existing industrial infrastructure can evolve into circular bioeconomy infrastructure. Every biodiesel plant generating crude glycerin is a potential platform for renewable natural oil production.”

The milestone also supports the deployment of Cemvita’s industrial biomanufacturing platform, FermWorks, which integrates with existing energy and industrial infrastructure to turn waste carbon streams into SAFs and other materials. According to the release, Cemvita plans to move forward with commercial deployment discussions with partners in Brazil, Europe and in the UK. Cemvita already has a partnership with the Brazilian sustainable research institution REMA.

“We are proud to support innovative companies like Cemvita in scaling breakthrough industrial biotechnology solutions,” Hendrik Waegeman, head of business operations at Bio Base Europe Pilot Plant, added in the release. “Successfully operating at the 75,000-liter scale using a feedstock such as crude glycerin highlights both the maturity of the technology and the quality of the scale-up execution achieved by the Cemvita team.”

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This article originally appeared on our sister site, EnergyCapitalHTX.com.

Eli Lilly scoops up Houston biotech startup in $300 million deal

big pharma deal

Pharmaceutical giant Eli Lilly has acquired Houston biotech startup CrossBridge Bio, which develops antibody-drug conjugates for cancer, in a deal worth up to $300 million. The deal was celebrated by TMC Venture Fund and the University of Texas Health Science Center at Houston last week.

CrossBridge, founded in 2023, is developing ADCs based on research by Kyoji Tsuchikama and Zhiqiang An, both of UT Health Houston. Tsuchikama is an associate professor of medicinal chemistry and a globally recognized ADC pioneer, and An is a professor of molecular science and vice president of drug discovery.

Antibody-drug conjugates (ADCs) are a potent combination of targeted therapy and chemotherapy that kills cancer cells while saving healthy tissue.

Clinical trials for CrossBridge’s primary ADC candidate, CBB-120, are expected to start this year, pending approval from the U.S. Food and Drug Administration (FDA).

“I’m proud of how well our team has executed and advanced our platform in such a short time since the company’s founding,” Michael Torres, co-founder and CEO of CrossBridge, said in a news release. “By becoming a part of Lilly, a leader in patient-focused therapeutic development, we are well-positioned to further accelerate the clinical potential of this approach.”

Under the Lilly deal, CrossBridge shareholders were expected to receive an upfront payment along with a follow-up payment based on the achievement of certain milestones.

In 2024, CrossBridge closed a $10 million seed round. Among the investors in CrossBridge are the Texas Medical Center Venture Fund, CE-Ventures, Alexandria Venture Investments, Portal Innovations, Linden Lake Labs, and the Cancer Prevention and Research Institute of Texas (CPRIT). It was formed in TMC Innovation’s Accelerator for Cancer Therapeutics program."Built within the TMC ecosystem, CrossBridge Bio grew with the support, funding, and resources that helped shape its trajectory. TMC led the company's early financing and watched it evolve from its earliest days to its acquisition by Eli Lilly," William McKeon, president and CEO of the Texas Medical Center, shared in a LinkedIn post. "[This is a] strong reminder that breakthrough science and the right early backing can change what’s possible."