Photos by SAM DEAN The Roanoke Times

Taffy LaPrade, an employee of Angle Hardware in Rocky Mount, waits for customers Tuesday afternoon. Owner Bob Mills, a third generation owner of the store that first opened in 1887, lamented the year's sales. "Figures don't lie. Sales are just down," he said.

It's becoming more common for local governments such as Rocky Mount's to step in to help businesses.

ROCKY MOUNT -- Some may consider the recent rise in the stock market a positive sign of change in the economy, but many business owners are wondering when they'll see a surge in business.

In an effort to help, local government officials have decided to step in with $5 coupons -- funded with taxpayer money -- for consumers to use at local retailers.

Town Manager James Ervin and County Administrator Rick Huff approached Community Partnership for Revitalization -- a local nonprofit committed to promoting the town and revitalization efforts -- for ideas to encourage shoppers to get out and spend.

Partnership Director Katie McElroy proposed a coupon program called "5 on Us" in which the localities provide the coupons redeemable at local retailers and restaurants. Gas, groceries and prescriptions are excluded. For each coupon received, the locality will reimburse the business.

But when it came to time to approve the initiative, only the town decided to fund the program.

After the town council agreed to the idea last week, the county board of supervisors met this week over whether to approve its share of the program.

The supervisors had a lot of questions, including how the coupons would be distributed and enforced, as well as public reaction to using taxpayer money for such a purpose. The board decided that the county will monitor what happens with the town program and consider participating later, Huff said.

The original program called for 10,500 coupons and a price tag up to $56,700. After a meeting Thursday morning, McElroy and Ervin scaled the initiative back to 6,000 coupons costing the town as much as $35,000, depending on how many coupons are redeemed.

The two are scheduled to meet again Monday to settle details, including deciding which businesses will be allowed to participate and discussing any additional rules for the program. Next week McElroy will solicit local business participation. Accepting the coupons will not be mandatory.

"All businesses are really looking for new customers right now," said Janie Hopkins, director of the Franklin County Chamber of Commerce. Like businesses around the country, retailers in Franklin County are struggling, "some more than others, depending on what they sell."

After he sees more details, Dean Haynes, manager at the Furniture Superstore on Franklin Street, said the program is something he'd seriously consider participating in.

Business has been hurting lately, and the company can't afford to advertise sometimes, he said.

"The goal is to increase local spending," McElroy said, adding that if all 6,000 coupons were redeemed, the community could see at least $120,000 in spending. But both Ervin and McElroy noted that it's highly unlikely that all of the coupons -- set to expire in May 2010 -- would be redeemed.

Ferrum College business professor Demetri Tsanacas said he isn't sure how much of a financial impact the town will see since the discount offered is fairly small.

"I see it more as a psychological, morale boosting type of initiative that could make the consumers purchase locally," he said.

To get the coupons in the hands of shoppers, McElroy is going about it in three ways: mailing them to the 2,500 households in the town, distributing them to Ferrum College students and placing them in common areas around town.

To enhance the programs, McElroy said businesses can have other consumer incentives such as a discount on the fifth of every month or a punch card giving an additional $5 discount after five visits.

After the six-month coupon period, both localities will measure new spending and review the tax revenue.

Local governments stepping in to help ailing businesses is becoming more common, Tsanacas said.

McElroy said she is also working on a few other initiatives to encourage shoppers to buy local. A town discount card and an "I AM Rocky Mount" campaign that highlights business owners and residents are options, she said.