Preheat oven to 350 degrees and prepare rimmed baking sheet with parchment paper.
Heat oil in medium skillet over medium-high. Add onion,, garlic, squash, and bacon. Cook, stirring occasionally, until onion is soft, about 5 minutes. Add sage and red pepper and cook one minute.
Combine meat, cheese, bread, and egg in large bowl. Add vegetables, 2 tsp salt and 1/2 tsp pepper. Mix well with hands. Form into 4" x 10" loaf on pan. Bake until meatloaf is cooked, about 40 minutes. Let rest 15 minutes before cutting.