Isn't the ISS in LEO? They already delivered supplies there and they were the first private business to do so, if they can get supplies up what's so difficult about getting astronauts up?

Well, Musk had to get government aid for Tesla so I assume he'll need it for SpaceX too and won't be able to do it without at least financial aid but with it, I'm sure SpaceX can pull it off. Plus they'll be able to cut costs if they succeed with those Grasshopper experiments.