In a 4- to 5-quart pan over high heat, frequently stir bacon until crisp, about 4 minutes. Lift out the bacon with a slotted spoon and drain on towels. Discard all but 1 teaspoon of the drippings from pan.
Add onions and garlic to pan. Stir often until onion is lightly browned, about 5 minutes. Add green pepper, chili sauce, tomato paste, sugar, mustard, beans, and bacon. Stir often until boiling, then reduce heat and simmer 5 to 10 minutes to blend flavors.