database file has to be in same folder where program is so user can take own backups
Danger Will Robinson! Non-admin users cannot modify files in the shared or Program Files folder. You are forcing users to run as Admins, or change the Program Files folder so non-Admins can modify it; both are serious security vulnerabilities.
If you install the database to the Programs folder, then the database is part of the install and not user data. This means that repairing or uninstalling the application will delete all user data. Users don't like that.
Your application should copy the application database to a user folder like Environment.SpecialFolder.ApplicationData
and save all changes there. All users can modify and backup data from their own folders, no security vulnerabilities required. Also, when someone repairs or uninstalls the application, all users get to keep their data.