The signs in Bishop's Castle had been put up on Tuesday to welcome visitors to the town after a difficult few months for traders.
But this morning the banners were found ripped off the wooden boards and left in a crumpled ball on the floor.
Bishop's Castle Mayor, Grant Perry, said he was saddened to see the banners had been destroyed.
"It’s very disappointing to see a generous gesture from a local business to help the other businesses in Bishop’s Castle recover has suffered vandalism in such a way," he said.
"Whilst it’s a fine balancing act between safety and economics small businesses in this rural market town will not survive without the visitor pound and as long as government guidelines are followed Bishop’s Castle will continue to welcome visitors."
Bishop's Castle has many independent shops and businesses that have suffered from a loss of income during the coronavirus pandemic and subsequent lockdown. The new banners were supposed to be a helping hand to traders by welcoming visitors into the market town.