Preheat your oven to 375°F and line a small baking dish or loaf pan with parchment paper.
Finely dice the yellow onion and red bell pepper so they incorporate easily into the meat.
In a medium mixing bowl, combine the ground beef, egg, diced onion, and diced bell pepper.
Add the smoked paprika, garlic powder, sea salt, and black pepper to the bowl.
Mix the ingredients by hand until just combined, ensuring you do not overwork the meat to keep it tender.
Shape the mixture into a compact rectangular loaf and place it in the prepared baking dish.
Drape the bacon slices over the top of the loaf, tucking the ends slightly underneath the meat.
Brush 1 tablespoon of the sugar-free BBQ sauce evenly over the bacon-wrapped top.
Bake for 35 to 40 minutes, brushing the remaining tablespoon of BBQ sauce over the loaf during the last 5 minutes of cooking.
Remove from the oven once the internal temperature reaches 160°F and let rest for 5 minutes before slicing.