The motor drive a jackshaft mounted behind the headstock, and then the jackshaft in turn drives the spindle through the reddish colored leather belt.
Overall, that's not a bad setup, though from what I understand of Lowe 48 prices, it's running about 50% higher than normal.
Two major drawbacks: One, it's a plain bearing headstock, not a roller bearing. (I think, I'm not 100% up to speed on Southbends.) That's not a problem unless the bearings are worn, which is somewhat common. Repairs are not easy.
And two, you have no quickchange gearbox. You can live without it, but it's a serious pain- switching gears to change the feed rate or thread you want cut, can be a 15 minute proposition. (And while I see it comes with the gears, you'll need to de-rust them before you use 'em.)
If you gotta have a lathe, you could sure do worse- SB 9" parts are common, and a few are even being remade these days. There's a 9" QCGB on eBay, though I have no idea if it'd be the correct one to refit to that machine.
It's also $325, and that pushes the whole cost of the machine over $1,800, and really, you could buy a brand-new Grizzly 10" for that.